CannTrust hires adviser to explore sale amid unlicensed pot growing probe
The cannabis company says Greenhill & Co. Canada will serve as its financial adviser to help explore a potential sale and other strategic alternatives
VAUGHAN, Ont. – CannTrust Holdings Inc. has hired a financial adviser to help the cannabis company explore a potential sale and other strategic alternatives as regulators continue to investigate allegations of illicit pot growing at its Ontario greenhouse.
CannTrust says these alternatives could include, among other things, a sale of the licensed pot producer or a portion of it, a merger, a strategic investment, or changes to its operations or strategy.
The company says Greenhill & Co. Canada will serve as its financial adviser and notes that it has not set a timeframe for completion of its strategic review.
The announcement comes about a week after the Vaughan, Ont.-based company terminated its chief executive Peter Aceto with cause and demanded the resignation of board chair Eric Paul after a board committee’s investigation into unlicensed growing at its Pelham, Ont.-facility unearthed new information.
Health Canada discovered during an unannounced inspection in late June that the pot firm was growing cannabis in several rooms before receiving the appropriate government licences to do so and seized several thousand kilograms of cannabis from those rooms.
CannTrust disclosed the regulator’s findings in early July and has since voluntarily halted all sales and shipments as the federal health regulator continues its probe, the outcomes of which could include suspension or termination of its cannabis licences and fines up to $1 million.