Berger Montague (Canada) PC invites Investors to discuss their legal rights about investing in Chesswood Group Limited

TORONTO, July 26, 2024 /CNW/ - Berger Montague (Canada) PC, a Toronto-based law firm that focuses on representing investors in cross-border shareholder disputes, is investigating Chesswood Group Limited (TSX: "CHW", USOTC "CHWWF"; and FRA: "Y30.F") a company that is subject to the disclosure rules created by the Province of Ontario's Securities Act.

During late 2023, all appeared to be fine between investors and CHW.  However, CHW announced that the Board of Directors had created a Special Committee to review various aspects of the Company.  CHW's shares were trading at $7.90 per share. 

On May 8, 2024, CHW released its financial statements for the period ending March 31, 2024, and disclosed that "Due to an unintended omission from a Q4 2023 amendment to the agreement, the Company was offside of one covenant for a short period at the end of 2023 and early 2024, and has received a waiver from its lenders in such regard." 

Weeks later on June 14, 2024, however, CHW reported that it was, in fact, still in breach of a debt covenant within its senior secured credit facility but it would not affect the calculation of its "other assets or the liabilities reported in its financial statements and related MD&A." The market's impact was harsh and immediate, sending CHW's share price down to $3.60.

Again, weeks later on July 22, 2024, CHW reported that it would need to restate its financial statements and management, discussion and analysis for the period ending March 31, 2024, because of errors made in calculating its borrowing base for its senior secured revolving credit facility.  CHW further reported that it was working with its auditor to determine the scope of the restatement to include goodwill, assets, and disclosure about its compliance with the credit facility. The market impact was harsh and immediate; suggesting that the market anticipates that the proposed restatement may go back to the 2023 financial statements because on May 8, 2024, CHW had reported that the error occurred in Q4 2023.  The market's impact was, again, harsh and immediate, sending CHW's share price down to $2.38.

CHW's share price has dropped greater than 50% this year.

If you purchased shares of Chesswood Group Limited between November 6, 2023 and July 22, 2024, and would like to know more about our investigation or have information to share, please contact us at [email protected].  

Berger Montague (Canada) PC is one of the leading Canadian law firms that represent investors in shareholder class actions where the corporate defendant lists securities cross-border and in Europe.

SOURCE Berger Montague (Canada) PC

Questions may be directed to: Berger Montague (Canada) PC, 330 Bay Street, Suite 505, Toronto, ON M5H 2S8, Email: Andy Abramowitz [email protected] or Andrew Morganti at [email protected].