INVESTOR ALERT: CHESSWOOD GROUP LIMITED, PENDING SHAREHOLDER CLASS ACTION

TORONTO, Sept. 3, 2024 /CNW/ - Berger Montague (Canada) PC, a Toronto-based law firm that focuses on representing investors in cross-border shareholder disputes, announces that a shareholder class action was issued against 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.

On July 22, 2024, Chesswood released a statement that it would need to restate its 1Q financial statements and MD&A as they related to the syndicated revolving credit facility, the breach of the debt covenants, suspension of borrowing capacity and originations by its subsidiaries Pawnee and Rifco; and implicitly reported that it still could not file its continuous disclosure core documents for the period of 1Q and 2Q 2024. The market impact of this negative material fact news was harsh and immediate on Chesswood's securities; sending Chesswood's share price from $2.81 to $2.66, which continued to fall through the next day down to $2.35.

By August 15, 2024, however, Chesswood's securities closed at $0.90, without the ability to release financial statements, and having been forced to sell substantial assets to HB Leaseco Holdings Ltd. (a company affiliated with one of Chesswood's directors).

As of today, the Ontario Securities Commission ("OSC") revoked Chesswood's ability to allow secondary market trading of its securities and Chesswood has acknowledged that it may need to restate its financial statements released during 2023.

The Plaintiff and putative Classes suffered a foreseeable economic loss from the market impact of the Public Corrective Disclosures contradicting the material fact statements and the destruction to the corporation as described within the impugned documents, as described below.

If you purchased shares of Chesswood Group Limited between August 8, 2024, and July 22, 2024, and would like to express your opinion(s) or learn more about our investigation or have information to share, please contact us at [email protected]. 

SOURCE Berger Montague (Canada) PC

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