SEC charges Cronos with accounting fraud.
The Securities and Exchange Commission announced on Monday that it charged Cronos, one of the highest-valued cannabis companies in the world, with “improperly accounting for millions of dollars of revenue and for other accounting misconduct in multiple reporting periods.” And, it charged former CCO William Hilson with “fraud and aiding and abetting the company’s violations.”
Specifically, the SEC said, “in three separate quarters between 2019 and 2021, Cronos submitted financial statements with the SEC that contained material accounting errors related to, among other things, revenue recognition and goodwill impairment. The order also found that, in one of the quarters, Hilson entered into an undisclosed oral agreement to sell cannabis raw material and to repurchase cannabis product in the following quarter.”
But, it was Cronos that brought this to light, the SEC continued: “This agreement was neither known nor accounted for by Cronos, which discovered the $2.3 million accounting error during an internal investigation. After discovering the accounting errors, Cronos promptly reported the misconduct to the SEC and provided extensive cooperation that meaningfully advanced the Commission’s investigation. It also took effective remedial steps to enhance its internal accounting controls.”
As a result, Cronos does not face penalties. Hilson will pay the Ontario Securities Commission $54,000.
Altria, maker of Marlboro, owns nearly half of the company.
Americans support Biden’s pardons, feel alcohol is more dangerous than cannabis.
A new Monmouth University poll found that there’s “broad public approval” (69%) for Pres. Joe Biden’s approach to cannabis pardons.
And, 68% of those polled said that they support legalization of possession of small amounts of cannabis, though that support is divided among party lines: Democrats are more supportive (76%) and Republicans (52%) less so.
Most voters polled (54%) felt that alcohol use is more dangerous than cannabis.
The vast majority (87%) of voters 35 and younger are supportive of legalization, with just 53% over the age of 55 voicing support.
Economy concerns overtake cannabis concerns for truckers.
In September, the American Transportation Research Institute (ATRI) released the questionnaire for its annual “Top Industry Issues Survey.” This survey prompts participants to pick three issues among 28 as top-of-mind. Included in September’s announcement was “marijuana legalization,” among issues like fuel prices.
Legalization isn’t much of a concern for truckers, as it turns out. When the results were released on Saturday, legalization didn’t make the top 20 cut, and when Cannabis Wire asked where it was placed, ATRI said that cannabis came in at number 22 overall.
+ More: Read Cannabis Wire’s coverage of how the trucking industry is thinking about cannabis reform.
Cookies is opening a five-story cannabis hub in NYC.
Cookies SF has been teasing the exterior of its Herald Square space for weeks. Now, the company has announced what they will be doing in the five-story building, calling it “a monumental retail store and future location of a world-class cannabis career training facility.”
They will offer streetwear on the first two floors, put management on the third floor, and the future “cannabis educational classes” on the fourth and fifth floors. The classes would be part of Cookies U, which is focused on training equity applicants, and the company says it aims to partner with local colleges.
The grand opening will take place on October 30.
