VAUGHAN, ON, Aug. 9, 2019 /PRNewswire/ - CannTrust Holdings
Inc. ("CannTrust" or the "Company", TSX: TRST, NYSE: CTST) today
announced that the Company's independent auditor, KPMG LLP,
Chartered Professional Accountants ("KPMG"), has informed the
Company that effective August 8,
2019, it is withdrawing its report dated March 27, 2019 on the Company's consolidated
financial statements as at and for the year ended December 31, 2018 and its interim report to the
Audit Committee dated May 13, 2019 on
the unaudited condensed interim consolidated financial statements
as at and for the three month period ended March 31, 2019 (collectively, the "KPMG
Reports"), and therefore, the KPMG Reports should no longer be
relied upon. KPMG remains CannTrust's independent auditor.
The Company's cooperation with KPMG is being directed by the
Company's Audit Committee and a special committee (the "Special
Committee") of its board of directors which is conducting an
ongoing investigation into various matters.
As previously disclosed, Management is of the view that there is
significant uncertainty with respect to the potential impact of
pending Health Canada decisions on the valuation of the Company's
inventory and biological assets and revenue recognition.
Accordingly, CannTrust cautions against any reliance on its
consolidated financial statements as at December 31, 2018 and interim consolidated
financial statements as at and for the three month period ended
March 31, 2019. CannTrust is
continuing to cooperate with Health Canada and the impact of the
matters being investigated by the Special Committee on CannTrust's
financial results is unknown at this time. Further updates, to the
extent material, will be provided as they become available.
KPMG's decision was prompted by the Company's caution against
reliance on its financial statements for the year ended
December 31, 2018 and for the three
months ended March 31, 2019, as well
as the recent sharing with KPMG of newly uncovered information from
the Special Committee's investigation, including information that
led to senior leadership changes announced on July 25, 2019. KPMG was not aware of the
information recently shared by the Company when it issued the KPMG
Reports and had relied upon representations made by individuals who
are no longer at the Company.
"We will continue cooperating with our auditor and regulators,
and take whatever steps are necessary to restore full trust in the
Company's regulatory compliance. Our medical patients, customers,
shareholders and employees deserve nothing less", said Robert Marcovitch, the Company's Chief Executive
Officer.
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 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 Health Canada's determinations and decisions with
respect to regulatory compliance matters. Forward-looking
information and statements necessarily involve known and unknown
risks, including, without limitation: results of Health Canada's
quality product testing, including orders and compliance measures
required by Health Canada and their impact on the operations and
financial condition of the Company; 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.