An investigation on behalf of investors of Champignon Brands Inc. (OTC: SHRMF) shares over potential securities laws violations by Champignon Brands Inc. and certain of its directors and officers in connection with certain financial statements was announced.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Champignon Brands Inc. (OTC: SHRMF) concerning whether a series of statements by Champignon Brands Inc. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
Canada based Champignon Brands Inc. cultivation, distribution, and proliferation of medicinal mushrooms and its derivatives in North America.
On February 17, 2021, Champignon Brands Inc. 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”. Further, Champignon Brands Inc. stated that “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.”
Shares of Champignon Brands Inc. (OTC: SHRMF) declined from $1.06 per share on December 14, 2020, to as low as $0.355 per share on March 23, 2021.