CannTrust announced the company is being investigated both by the Ontario Securities Commission’s Joint Serious Offenses Team, a partnership with the RCMP’s financial crime branch and the Ontario Provincial Police’s anti-racketeering arm. (The Leaf has a helpful summary of l’affaire CannTrust if you’ve missed the last few weeks.)

The same day he received and replied to an email about the company’s unlicensed growing, now-former chair Eric Paul (as well as director Mark Litwin) sold $1M in CannTrust shares, followed by another $5M in shares over the following 30 days.
Globe and Mail

  • Earlier this week, interim CEO Robert Marcovitch promised transparency and said, “We are aggressively getting our house in order.”
    Globe and Mail
  • Marcovitch would not say whether other board members knew about the unlicensed growing, noting the findings of the Board’s special committee “are most certainly confidential save for what we clearly want to provide, as we should as a public company.”
  • He did not rule out cuts to jobs at CannTrust’s Pelham facility.
    Financial Post

CannTrust hired US investment bank Greenhill & Co. to conduct a strategic review that may conclude the company should be sold in whole or in part. It may also recommend strategic investment, business combination, or other changes. The company’s legal liability has not yet been determined, while Health Canada may suspend or cancel CannTrust’s licenses.
Globe and Mail, Bloomberg, MJ Biz Daily