VAUGHAN, ON, July 25, 2019 /CNW/ - CannTrust Holdings Inc.
("CannTrust" or the "Company", TSX: TRST, NYSE: CTST) today
announced immediate senior management changes and other interim
actions based on the ongoing investigation being undertaken by a
special committee (the "Special Committee") of its board of
directors (the "Board of Directors").
The investigation into the Company's non-compliance with Health
Canada regulations and ancillary matters uncovered new information
that has resulted in a determination by the Board to terminate with
cause CannTrust CEO Peter Aceto.
In addition, the Board of Directors demanded the resignation of
the Company's Chair Eric Paul and he
complied.
Effective immediately, the Board has appointed Special Committee
Chair Robert Marcovitch to the role
of interim CEO and he will step down as a member of the Special
Committee. A seasoned chief executive, Mr. Marcovitch was most
recently the President and CEO of K2 Sports, an international
developer, manufacturer, marketer and distributor of winter sports
equipment. He was previously the Chief Executive Officer at The
Coleman Outdoor Company from 2011 until 2015, and prior to that,
was Chief Executive Officer and President of Ride, Inc. from 1994
to 1999, which prior to its acquisition by K2 was a large publicly
traded company.
"Our first priority is to complete the remaining items of our
investigation and bring the Company's operations into full
regulatory compliance. Implementing the necessary changes is
essential to the interests of our medical patients, customers,
shareholders and employees," said Mr. Marcovitch. "CannTrust has a
number of strengths it can draw upon to reset and rebuild,
including industry-leading research, innovation and intellectual
property."
Mark Dawber has assumed the role
of Special Committee Chair.
Based on new information uncovered by the investigation, the
Company made a voluntary disclosure to Health Canada. The Company
will fully cooperate with the regulator in an open and transparent
manner to resolve these matters fully and expeditiously.
The Company is preparing to make additional operational changes
in the days and weeks ahead, which will be announced in due
course.
At this time, the impact of these matters on CannTrust's
financial results is unknown. Further updates will be provided as
they become available.
About CannTrust
CannTrust is a federally regulated licensed producer of medical
and recreational cannabis in Canada. Founded by pharmacists,
CannTrust brings more than 40 years of pharmaceutical and
healthcare experience to the medical cannabis industry and serves
medical patients with its dried, extract and capsule
products. The Company operates its Niagara Perpetual Harvest
Facility in Pelham, Ontario,
and prepares and packages its product portfolio at its
manufacturing centre of excellence in Vaughan, Ontario. The Company has also purchased 81
acres of land in British Columbia and expects to secure
over 240 acres of land in total for low-cost outdoor cultivation
which it will use for its extraction-based products.
Forward Looking Statements
This press release contains "forward-looking information" within
the meaning of Canadian Securities laws and "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and other
applicable United States safe harbor laws, and such
statements are based upon CannTrust's current internal
expectations, estimates, projections, assumptions and beliefs and
views of future events. Forward-looking information and
forward-looking statements can be identified by the use of
forward-looking terminology such as "believes", "expect", "likely",
"may", "will", "should", "intend", "anticipate", "potential",
"proposed", "estimate" and other similar words, including negative
and grammatical variations thereof, or statements that certain
events or conditions "may", "would" or "will" happen, or by
discussions of strategy.
The forward-looking information and statements in this news
release include statements relating to the expected timeframe and
resolution for the completion of Health Canada's quality product
testing and the Company's response to Health Canada's compliance
report. Forward-looking information and statements necessarily
involve known and unknown risks, including, without limitation:
results of Health Canada's quality product testing; regulatory
approval; risks associated with general economic conditions;
adverse industry events; loss of markets; future legislative and
regulatory developments in Canada, the United
States and elsewhere; the cannabis industry
in Canada generally; and, the ability of CannTrust to
implement its business strategies.
Any forward-looking information and statements speak only as of
the date on which they are made, and, except as required by law,
CannTrust does not undertake any obligation to update or revise any
forward-looking information or statements, whether as a result of
new information, future events or otherwise. New factors emerge
from time to time, and it is not possible for CannTrust to predict
all such factors. When considering these forward-looking
information and statements, readers should keep in mind the risk
factors and other cautionary statements in CannTrust's Annual
Information Form dated March 28, 2019 (the "AIF") and
filed with the applicable Canadian securities regulatory
authorities on SEDAR at www.sedar.com and filed as an
exhibit CannTrust's Form 40-F annual report under the United States
Securities Exchange Act of 1934, as amended, with the United States
Securities and Exchange Commission on EDGAR at www.sec.gov.
The risk factors and other factors noted in the AIF could cause
actual events or results to differ materially from those described
in any forward-looking information or statements.
The TSX and NYSE do not accept responsibility for the adequacy
or accuracy of this release.
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SOURCE CannTrust Holdings Inc.