NEW YORK, May 2, 2021 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Champignon Brands Inc. ("Champignon" or the "Company") (OTCMKTS: SHRMF). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether Champignon and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On February 17, 2021, Champignon announced that "the Company has determined to withdraw and refile its condensed interim consolidated financial statements and management's discussion & analysis ('MD&A') for the three and six month periods ended March 31, 2020". The Company advised investors that "[f]or the three and six month periods ended March 31, 2020, the Company previously recognized intangible assets in connection with the acquisitions of Artisan Growers Ltd., Novo Formulations Ltd. and Tassili Life Sciences Corp. (the 'Acquisitions') that aggregated approximately $12 million," but that subsequently "management determined that the financial statements needed to be restated to correct the accounting for the Acquisitions as the assets do not meet the definition of intangible assets for the purposes of international financial reporting standards and as result will be recorded as transaction costs in the Company's statement of loss and comprehensive loss." The Company also announced that "it was determined that a shareholder and contracted consultant (the 'Consultant') of the Company was a related party with respect to the Acquisitions."
On this news, Champignon's stock price fell roughly $0.08 per share, or 10.78% to close at $0.69 per share on February 17, 2021.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com