Braxia Scientific Corp. f/k/a Champignon Brands Inc.

  • Settled

Investigation
04/10/2021

Initial Lawsuit
04/10/2021

Lawsuit Progression
06/29/2021

Settlement
04/07/2022

Investigation

  • Continous Holding
    March 27, 2020 to February 17, 2021
  • Proposed Claim
    Securities Violation

Investigation regarding Champignon’s internal controls over financial reporting, previous acquisitions and acquisitions of Artisan Growers Ltd., Novo Formulations Ltd. and Tassili Life Sciences Corp.

Main Event

Restatement

02/17/2021

Company Statement

Champignon Brands announces a restatement of its condensed interim consolidated financial statements and management’s discussion & analysis for the three and six month periods ended March 31, 2020: 

“. . . the Company previously recognized intangible assets in connection with the acquisitions of Artisan Growers Ltd., Novo Formulations Ltd. and Tassili Life Sciences Corp. that aggregated approximately $12 million. Subsequent to the issuance of the Original Financial Statements and MD&A, 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 restated condensed interim consolidated financial statements and MD&A will reflect this change in the accounting treatment of the assets acquired in these acquisitions. The effect of the restatements does not impact the Company’s cash position.”

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close Previous close Price variation Percentage variation
$0.69 $0.77 $-0.08 -10.78%
See more on Factual Timeline

Initial Lawsuit

First Complaint - 04/10/2021

This is a class action on behalf of persons or entities who purchased or otherwise acquired publicly traded Champignon securities between March 27, 2020 and February 17, 2021, inclusive.

  • Filing Date
    04/10/2021
  • Class Period
    03/27/2020 to 02/17/2021
  • Transgression
    Securities Violation
  • Filing Firms
    The Rosen Law Firm, P.A.
  • Case Title
    Jeffrey N. Schneider v. Champignon Brands Inc.
  • Docket Number
    2:21-cv-03120
  • Court
    California Central District Court
  • Free File
    Complaint

Allegations

According to the complaint, 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 allegedly 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 from trading;
(6) as a result, Defendants’ statements about Champignon’s business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.

Defendants

  • Company
    Champignon Brands Inc.
  • Chief Executive Officer
    Gareth Birdsall
  • President
    Matthew Fish

Lawsuit progression

  • Docket Number
    2:21-cv-03120
  • Court
    California Central District Court

Lead Counsel

06/29/2021

The court issued an order appointing the lead plaintiff and lead counsel.

  • Lead Counsel
    Glancy Prongay & Murray LLP
  • Lead Plaintiff
    Individual
  • Free File
    Order for lead

Amended Complaint

11/03/2021

This is a federal securities class action on behalf of persons or entities that purchased or acquired Champignon securities between March 27, 2020 and February 17, 2021, inclusive.

  • Updated Class Period
    03/27/2020 to 02/17/2021
  • Free File
    Amended Complaint

    • Operative complaint

Motion to Dismiss

12/20/2021

A motion to dismiss was filed with the court.

Settlement

Announce

On 04/07/2022, lead counsel Glancy Prongay & Murray LLP announced a proposed class action settlement.

Source

[stockdio-historical-chart symbol=”BRAXF” stockExchange=”NYSENasdaq” width=”500″ height=”330″ motif=”blinds” palette=”humanity” includeVolume=false]

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