Deadline Reminder: Law Offices of Howard G. Smith Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Champignon Brands Inc. (SHRMF)
BENSALEM, Pa., May 04, 2021 (GLOBE NEWSWIRE) — Law Offices of Howard G. Smith reminds investors of the upcoming June 9, 2021 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Champignon Brands Inc. (“Champignon” or the “Company”) (OTC: SHRMF) securities between March 27, 2020 and February 17, 2021, inclusive (the “Class Period”).
Investors suffering losses on their Champignon investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to [email protected].
On June 22, 2020, Champignon announced that the Company had “been selected for continuous disclosure review by the British Columbia Securities Commission (the “Commission”) and “in connection with the review, the Commission had issued a cease trade order suspending in the securities of the Company pending the filing of business acquisition reports.”
On this news, the Company’s stock price fell 24% to close at $0.500 per share on June 22, 2020, thereby damaging investors.
On September 15, 2020, the Company issued a press release stating, amongst other things, “the Commission issued a replacement cease trade order . . . , pending the filing of a revised material change report . . . in connection with the acquisition by the Company of AltMed.” Champignon further stated that “the acquisition of AltMed should be treated as a reverse-takeover.”
On this news, Champignon’s stock price fell 5% to close at $0.271 per share on September 16, 2020, thereby damaging investors.
On February 17, 2021, Champignon announced that it would restate its financial statements for the three and six month periods ended March 31, 2020. Specifically, “the Company previously recognized intangible assets in connection with” certain acquisitions, and “management determined that . . . 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.” Champignon also stated that “a shareholder and contracted consultant (the ‘Consultant’) of the Company was a related party with respect to” those acquisitions.
On this news, Champignon’s stock price fell 10% to close at $0.687 per share on February 17, 2021, thereby damaging investors further.
The complaint filed alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Champignon had undisclosed material weaknesses and insufficient financial controls; (2) Champignon’s previously issued financial statements were false and unreliable; (3) Champignon’s earlier reported financial statements would need to be restated; (4) Champignon’s acquisitions involved an undisclosed related party; (5) as a result of the foregoing and subsequent reporting delays and issues, the British Columbia Securities Commission would suspend Champignon’s stock from trading; (6) as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired Champignon securities during the Class Period, you may move the Court no later than June 9, 2021 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected], or visit our website at www.howardsmithlaw.com.
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Published on : https://www.globenewswire.com/news-release/2021/05/04/2222708/34548/en/Deadline-Reminder-Law-Offices-of-Howard-G-Smith-Reminds-Investors-of-Looming-Deadline-in-the-Class-Action-Lawsuit-Against-Champignon-Brands-Inc-SHRMF.html