Cronos Group shares lose 27 per cent af­ter re­port raises con­cerns

The Niagara Falls Review - - Business -

TORONTO — Shares of cannabis com­pany Cronos Group Inc. plum­meted nearly 27 per cent af­ter a U.S. short-seller raised con­cerns about the Toron­to­based com­pany’s dis­clo­sures. The com­pany’s stock fell $4.38 to $11.99 with nearly 10 mil­lion shares traded on the Toronto Stock Ex­change af­ter a brief halt in af­ter­noon trad­ing. The sell-off came af­ter U.S.-based Citron Re­search pub­lished a re­port ac­cus­ing the com­pany of de­ceiv­ing in­vestors by pur­posely not dis­clos­ing the size of distri­bu­tion agree­ments with prov­inces, un­like other ma­jor cannabis play­ers. Citron manag­ing edi­tor An­drew Left says un­named sources have in­di­cated the agree­ments are too small to jus­tify the pre­mium in­vestors are pay­ing for the stock.

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