U.S. cannabis giant Curaleaf says it misstated revenue

U.S. multi-state cannabis producer Curaleaf Holdings Inc.
CURLF,
-0.24%
on Wednesday said it will have to tweak its sales or sales forecasts for its fiscal 2021 and 2022, following a review of transactions made through its wholesale business and “additional material weaknesses” discovered in its accounting protocols. Management said it expects the restatement of the sales figures will lower 2021 sales by around 1.25%, and lower expected sales for 2022 by approximately 0.75%. The company expects its fourth-quarter revenue to be around $352 million, and $1.337 billion for all of its 2022. The review, by the audit committee of Curaleaf’s board, concerned “certain purchases and sales of products through the Company’s wholesale channel to determine whether they had commercial substance, and to confirm the timing and appropriateness of the recognition of revenue from those transactions, mainly in the last quarter of 2021 and the first and second quarters of 2022.” The company said it was taking steps to improve its financial controls. Shares slipped 0.2% after hours on Wednesday.