Cannabis cultivator CannTrust Holdings disclosed the firm is beneath investigation by securities regulators and the police, the most up-to-date blow to hit the embattled Ontario firm.
The firm mentioned in a news release that the Ontario Securities Commission (OSC) has opened an investigation “into matters and parties connected to CannTrust.”
The agency assigned the case to its Joint Really serious Offenses Group (JSOT) of the Enforcement Branch.
The JSOT consists of the OSC, the Royal Canadian Mounted Police Economic Crime system and the Ontario Provincial Police Anti-Rackets Branch.
In the release, CannTrust mentioned it will probably miss an Aug. 14 deadline to file its interim economic benefits for the 3- and six-month periods ended June 30.
In addition, the firm mentioned it imposed a blackout on trading of the company’s stock amongst directors, officers and other CannTrust insiders.
It plans to continue the blackout till it files its second-quarter benefits along with any restated economic information, if needed.
The most up-to-date developments come on the heels of CannTrust hiring a economic adviser to assessment “strategic options,” like a probable sale of the firm.
Earlier, CannTrust fired its CEO and forced the resignation of its chair more than a scandal involving unlicensed marijuana cultivation.
In announcing the anticipated delay in its economic benefits, CannTrust cited pending Overall health Canada choices with regards to the valuation of the company’s inventory as properly as its “biological assets” and income recognition.
CannTrust’s stock (NYSE: CTST) has been in a tailspin considering that a whistleblower alerted the federal cannabis regulator to 5 unlicensed cultivation rooms the firm had been operating considering that late 2018.
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