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CRONOS GETS SEC INQUIRY, HEXO DELAYS FILING

The U.S. Securities and Exchange Commission’s Division of Enforcement told Cronos Group to preserve all records dealing with recognition of revenues from bulk-resin purchases and biomass wholesale for a “confidential and non-public inquiry.”
MarketWatch

Marlboro parent company Altria owns 45% of Cronos stock and former Altria CFO Jerry Barbato, who became Cronos CFO last April, may be forced out. (C-suite leaders continue leaving their posts at other LPs.)
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Separately, Hexo announced it would again delay filing its interim financial statements and related documents for Q2 2020.(It did the same thing in October.)

Hexo CEO Sebastien St-Louis received a 30% raise to roughly $500,000 last year, giving him $8.8M compensation, up from $1.5M the previous year.
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  • Hexo had three CFOs in 2019, one of whom was paid $840,000, another more than $700,000, and a third paid $150,000 plus monthly $20,000 bonus for being an interim figure.
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BMO downgraded Hexo to “underperform” and suspended its target price.
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