Champignon Brands Inc. (CSE: SHRM) (OTCQB: SHRMF) has learned the hard way that public companies can’t deliver their homework late without suffering consequences. The company’s stock was unable to trade as of Wednesday as a result of the company not delivering the required financial documents on time.

Champignon said it continues to work diligently with the British Columbia Securities Commission to address the ongoing continuous disclosure review and to coordinate the revocation of the existing cease trade order. In a statement, the company said it, “Has submitted all requested documentation to the Commission in connection with the review of financial statements of AltMed Capital Corp. for the period ended June 30, 2020, and subject to review by the Commission expects to move forward with the finalization and public filing of these statements in short order.”

Background For Trading Stop

The company noted that on June 19, 2020, it was told by the Commission that it would be subject to a continuous disclosure review.  This review was related to Champignon becoming a public company earlier this year and included a review of the disclosure surrounding acquisitions completed by the company since that time.

In connection with the review, on June 19, 2020, the Commission issued a cease trade order suspending trading in the securities of the company pending the filing of Business Acquisition Reports in connection with the acquisitions of Artisan Growers Ltd., Novo Formulations Ltd. and Tassili Life Sciences Corp. As a result of the cease trade order, trading in the common shares of the Company was suspended on the Canadian Securities Exchange.

The Business Acquisition Reports were filed by the Company on July 21, 2020, during which time the company continued to work with the Commission to address comments received in the course of the disclosure review. As a result of the filing of the Business Acquisition Reports, on August 26, 2020, the Commission revoked the cease trade order previously issued on June 19, 2020. Concurrently with the revocation, 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.

Now Champignon is required to finalize the accounting treatment for the acquisition of AltMed, which includes compiling the financial statements of AltMed for the six-month period ended June 30, 2020, to meet disclosure requirements. On October 27, 2020, the Commission issued an additional cease trade order pending the filing of the interim financial statements of the company for the period ended June 30, 2020.

The October Order is not expected to affect the review process or timing for the resumption of trading of the common shares of the company as the reports required to be filed to satisfy the Replacement Order will address the outstanding items in the October Order.