CannTrust says OSC launches investigation into unlicensed pot growing
The scandal has led to the ousting of the company's CEO and the chairman of its board of directors. Shares have since fallen more than 50% on the Toronto Stock Exchange
VAUGHAN, Ont. – CannTrust Holdings Inc. says the Ontario Securities Commission has opened an investigation into issues around unlicensed growing at the company’s Ontario greenhouse.
The beleaguered cannabis producer said in a late-day release Thursday that the investigation has been assigned to the Joint Serious Offences Team of the commission’s enforcement branch.
The company disclosed on July 8 that it was facing a probe by Health Canada after the agency found the company had grown cannabis in several rooms at its Pelham, Ont. facility without government approval, and that employees had provided inaccurate information to regulators.
CannTrust’s shares have since fallen more than 50 per cent on the Toronto Stock Exchange and the scandal has led to the ousting of the company’s CEO and the chairman of its board of directors.
The company warned Thursday that it would likely miss its filing deadline for an interim financial report because of the significant uncertainty on the impact of the pending Health Canada decisions.
The Vaughan, Ont.-based company, which has halted all sales and shipments as Health Canada continues its probe, said Wednesday it had hired a financial adviser to help it explore a potential sale and other strategic alternatives.