GREY:CHALF - Post by User
Post by
Heywood_Silverson Aug 12, 2022 4:15pm
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Post# 34892776
OTC market
OTC marketCHAL touched the equivalent of 35 cents CAD today stateside with higher than normal volumes.
I figure someone liked the news about dumping the auditors with, hopefully, a chance to get the delayed filings squared away.
It's not totally surprising that a cannabis company is having trouble with their auditors, what with the lack of bankability for their cash assets, it makes auditing them that much more difficult. Throw in the mergers and such, management may not have seen eye to eye with how the former auditors wanted to present the financials. Given the state of the company right now, I fully understand why they might not want to be presented to the world in the most conservative fashion possible.
Although rare, shopping around for auditors (even in mid-audit) to get financials that are more aligned with management's wishes does occur. The PRIMARY point to keep in mind is that the auditors have to follow either IFRS or GAAP when performing their audit and rendering their opinions on the signed audit letter.
If the auditors withdrew from the audit, that is a HUGE red flag. Not necessarily so if the company fires the auditors instead.
Anyways, I figure it is sorta frustrating for the Canucks to sit on the sidelines and not be able to trade these shares. Some might be looking at the missed opportunity to load up when there is fear and blood in the streets whilst other may look at this as a missed opportunity to unload shares before it falls off the cliff. For what its worth, the action stateside doesn't portend the latter outcome.