CannTrust To Miss Q2 Filing Deadline, Announces Insider Trading Blackout

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Nevertheless reeling from a Well being Canada assessment following it was found the firm had been expanding in unlicensed rooms, the beleaguered CannTrust Holdings Inc. (TSX: TRST NYSE: CTST) just announced a blackout on firm insider trading. 

That blackout is anticipated to stay in impact till following the firm releases Q2 monetary reporting, which will be delayed due to the ongoing Well being Canada assessment and internal firm investigation. 

The firm announced currently that the August 14 filing deadline will be missed, as the possible effect of any choice reached by Well being Canada will have an unknown impact of the worth of CannTrust assets and inventory. 

In addition to the informal blackout on directors and management from trading shares, CannTrust informed the Ontario Securites Commission (OSC) that an official Management Cease Trade Orders may perhaps be issued in the coming months. 

Even though federal agencies continue to investigate amidst the possibility of CannTrust losing its license totally, the firm has retained Greenhill &amp Co. Canada Ltd. to initiate a strategic assessment. 

Even though the finish outcome of that separate assessment is nonetheless up in the air, the firm has stated a doable outcome could incorporate promoting off all or a portion of the firm to one more entity. Discussing the hiring of Greenhill and even additional regulatory troubles arriving this week, CannTrust issued this statement: 

That assessment is in its early stages and is ongoing. Currently, employees of the OSC advised the particular committee’s legal counsel that an investigation has been opened into matters and parties associated to CannTrust and the investigation has been assigned to the Joint Critical Offences Group of the Enforcement Branch of the OSC.

An investigation from the Ontario Securities Commission is just the most up-to-date in a string of key setbacks for the firm because the unlicensed expanding was found. Most not too long ago, the board of directors fired Chief Executive Officer Peter Aceto for result in, and in addition demanded the resignation of board chairman Eric Paul. 

These drastic upper management adjustments arrived following emails leaked on line showed that the firm CEO and other high ranking executives had been conscious of the unlicensed develop rooms and actively attempting to hide them from regulators. 

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