Globe says Canntrust quarter reports may need restating
Canntrust Holdings Inc (C:TRST)
Shares Issued 141,222,547
Last Close 8/1/2019 $2.87
Friday August 2 2019 - In the News
The Globe and Mail reports in its Friday, Aug. 2, edition that Canntrust Holdings says it may have to restate its historical financial statements and will "likely miss" its Aug. 14 filing deadline for its second quarter financial statements. The Globe's David Milstead and Mark Rendell write that Canntrust said management believes "there is significant uncertainty" about the impact of pending Health Canada decisions on the valuation of inventory, the cannabis plants that are growing and the revenue it is booking on its financial statements. That, Canntrust said, is because "Health Canada has broad discretion to exercise a wide range of regulatory powers." The pending Health Canada decisions "may also require restatement of certain of the company's historical financial statements and related management's discussion and analysis for the 2018 and the first quarter of 2019," the company said. Canntrust shares have dropped 55.6 per cent since July 8, when the company revealed it had received a non-compliance order from Health Canada. Canntrust could face sanctions from securities regulators on both sides of the border after it and several insiders sold $195.5-million (U.S.) worth of shares in May.
© 2019 Canjex Publishing Ltd.
Globe says OSC opens investigation into Canntrust
Canntrust Holdings Inc (C:TRST)
Shares Issued 141,222,547
Last Close 8/1/2019 $2.87
Friday August 2 2019 - In the News
The Globe and Mail reports in its Friday edition that the Ontario Securities Commission has opened an investigation into Canntrust Holdings. The Globe's David Milstead and Mark Rendell write that OSC spokesman Kristen Rose said the Joint Serious Offences Team, a partnership among the OSC, the RCMP's Financial Crime Program and the Ontario Provincial Police Anti-Rackets Branch, is conducting the investigation. Ms. Rose said, "To protect the integrity of our investigation, we will not be providing any further details or comment." Canntrust, which disclosed the OSC probe Thursday, is already under investigation by Health Canada for growing thousands of kilograms of pot in unlicensed rooms in its greenhouse facility in Pelham, Ont., in late 2018 and early 2019. Canntrust has halted all sales pending the outcome of the investigation. It said the OSC on Thursday contacted the legal counsel for the special committee of the company's board that was set up to review the situation. The OSC advised it "that an investigation has been opened into matters and parties related to Canntrust." It offered no further comment on that matter. Canntrust has established a freeze on trading by directors, officers and other insiders.
© 2019 Canjex Publishing Ltd.
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