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This took place awhile ago. That was the bad news day. Not last week.
Your data is wrong !
Please read and learn...
https://www.huffingtonpost.ca/marc-davis/medical-cannabis-growers-canada_b_13939122.html
https://www.reddit.com/r/canadients/comments/7ahg6z/lets_compile_a_list_of_lps_caught_using/
https://nationalpost.com/news/canada/rcmp-went-silent-about-massive-pot-bust-over-concern-for-marijuana-producers-stock-price-documents-reveal
RCMP went silent about massive pot bust over concern for marijuana producer’s stock price, documents reveal
There were also concerns the release of information could embarrass Health Canada and expose 'deficiencies' in new medical marijuana regulations
Author of the article:Douglas Quan
Publishing date:May 31, 2019 • May 31, 2019 • 8 minute read • Join the conversation
A worker at Canopy Growth's Tweed facility in Smiths Falls, Ontario.
A worker at Canopy Growth's Tweed facility in Smiths Falls, Ontario. PHOTO BY SEAN KILPATRICK/THE CANADIAN PRESS/FILE
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In the spring of 2014, RCMP officers in Kelowna, B.C. prepared a press release about a big drug bust at the local airport. It described how investigators had intercepted two shipments of marijuana of “unfathomable quantity” that were bound for a couple of licensed cannabis producers in Ontario. The press release, however, was never sent.
Days went by with a virtual information blackout over what the Mounties had seized and why, even after one of the companies — Tweed Marijuana Inc., now Canopy Growth Corp. — decided to release its own public statement, containing what some RCMP members perceived to be “brutally misleading” information about the seizure.
Five reasons cannabis may not be having an effect
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“I don’t see how we can’t comment as we are now being put in a negative light,” one frustrated sergeant wrote to a colleague in an email. “Basic media principles state that we should confirm the obvious — Tweed has chosen to put this out there so we would be remiss if we did not comment on factual points that have been inaccurately represented.”
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More than 900 pages of internal records obtained by the National Post reveal for the first time the lengthy deliberations that took place among RCMP members in B.C. and at RCMP headquarters in Ottawa over what, if anything, to tell the public about the March 31, 2014, seizures at Kelowna International Airport.
We would be remiss if we did not comment on factual points that have been inaccurately represented
Among the “strategic considerations” outlined in emails was a concern that the release of information might affect the stock price of Tweed, which had gone public on the Toronto Stock Exchange that week — the first pot producer in the country to do so. There were also concerns that the release of information could embarrass Health Canada and expose “deficiencies” in new regulations over medical marijuana production that were rolling out that same week.
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The National Post first sought access to the records five years ago through an access-to-information request. The RCMP initially refused to release any records, citing an ongoing investigation. The Post complained to the federal information commissioner, resulting in a process that dragged on until last fall when the RCMP finally agreed to process some of the records.
Asked this week about the national police force’s apparent concern over the impact of publicity about the bust on the company’s stock price and the potential political embarrassment to the federal government, B.C. RCMP spokeswoman Sgt. Janelle Shoihet said she needed more time to review the file. “Generally we can say that decisions with regards to communications will always consider impact on prosecution, timing and whether (or) not a company is publicly traded. These factors have been considered in the past and were not unique to this investigation,” she wrote.
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“Impacts on partners, disclosure, potential or active prosecutions and privacy legislation must all be considered when determining what, if any, information can be made public.”
But Garry Clement, a retired RCMP superintendent, said whether a company is publicly traded or not should not have been a consideration.
“When you see something like that, how can you say the RCMP is being objective? They’re playing in the hands of the company. Investors may have made a decision differently had they known the facts, he said. “It doesn’t give the impression of being upfront.”
In September 2015, Tweed was renamed Canopy Growth Corp. Jordan Sinclair, Canopy Growth’s vice-president of communications, said in an email this week the seizures happened more than five years ago when the Marijuana for Medical Purposes Regulations were in their infancy.
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“The company believed then and now that it acted in compliance with regulations. Today, we are focused on the next five years and continuing to build a global cannabis leader creating thousands of jobs in Canada, investing hundreds of millions of dollars into the Canadian economy, and providing the highest quality cannabis products to medical and adult-use customers around the world.”
Mettrum Health Corp, the other Ontario producer whose shipment was seized that day, was acquired by Canopy Growth in early 2017. A former spokesman for Mettrum did not respond to an email requesting comment.
The seizures happened against a backdrop of dramatic change in Canada’s regulatory landscape. New rules took effect on April 1, 2014 that restricted production of medical marijuana to licensed commercial producers. Tweed and Mettrum were among the first to be licensed.
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Prior to the transition date, individuals who had possessed personal-production licenses under the old regime were able to sell their starting materials — namely seeds and plants — to one of the new commercial producers, as long as they had Health Canada approval. Tweed and Mettrum received those approvals, Health Canada confirmed to reporters at the time.
When you see something like that, how can you say the RCMP is being objective?
But according to internal RCMP briefing notes, the items Tweed and Mettrum told Health Canada they would be importing from B.C. did not match what was seized at the Kelowna airport on March 31.
On paper, Tweed and Mettrum said they planned to transport 2,071 plants and 730 plants, respectively. But when RCMP examined the shipments, they instead found harvested marijuana buds that were packaged for resale, the records say.
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“It was packaged bud that was seized, which is materially different from ‘plants and seeds,’” one RCMP investigator wrote.
“At best what has been seized are clippings,” a summary report stated. “The (regulations) do not allow for the sale of marijuana in this form.”
And there was a lot of it — more than 700 kilograms of B.C. bud stored in 55 hockey bags and 40 boxes.
A draft press release prepared by the Kelowna RCMP’s media relations officer on April 1 noted that the seizure was of a quantity “rarely seen in the central Okanagan.”
“Several local growers had pooled their products for transfer … but the shipment fell outside the parameters of the legislation and was subsequently seized by police,” it said, adding that the size of the shipments was enough to create 2.1 million single doses based on 0.3 gram cigarettes.
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But senior officers, including the Kelowna detachment’s commanding officer, decided to hold off on the release, citing the lack of any charges.
Tweed chairman Bruce Linton told Postmedia in 2015 that the seizures may have been the result of “confusion.”
Tweed chairman Bruce Linton told Postmedia in 2015 that the seizures may have been the result of “confusion.” PHOTO BY DARREN BROWN/POSTMEDIA/FILE
A couple days later, on April 3 — the day before Tweed was listed on the TSX Venture Exchange — the company put out its own statement. Tweed said it had completed the acquisition of “seeds and plants” from a number of licensed growers, ensuring a “wide variety of choices” and sufficient inventory to meet demand.
The company acknowledged that one shipment had been held by the RCMP “while it confirms the details of the shipment.”
“In an effort to be transparent,” the statement continued, the RCMP was informed of the shipment and “invited to examine the material.”
Tweed chairman Bruce Linton told Postmedia at the time the seizures may have been the result of “confusion” over the old and new regulatory regimes.
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“When you call police to say, ‘Come look at this,’ you believe you have everything in order,” he said.
In internal emails, RCMP officers wrote that it was “painful” to not be able to respond and that the company’s version of events was “a long way from what transpired.”
“I find their language very interesting/misleading considering there were no ‘plants,’ ‘seeds,’ or ‘in-production material,’” Const. Kris Clark, Kelowna’s media officer, wrote to colleagues.
Officers also balked at the company’s assertion that it had invited the RCMP to inspect the shipment. Briefing notes indicate that in the week prior to the seizures, RCMP received “several calls” from airline charter companies enquiring about the “legitimacy of transporting 1500 lbs of marijuana.”
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“Tweed never came to us, the airline did,” Const. Shane Holmquist wrote to colleagues.
The shipment fell outside the parameters of the legislation
Insp. John Ibbotson told a colleague in an email that although the company’s statement may appear to be a standard press release, “it is in fact a news release intended to inform investors of a publicly traded company of a significant event surrounding a company’s activity.”
Noting that some of the information in Tweed’s release was “factually incorrect,” Ibbotson suggested there had been a violation of section 400 of the Criminal Code — related to making a false prospectus — and wondered if the Ontario Securities commission should be notified.
Yet for several more days, RCMP communications officers declined to set the record straight, trotting out the standard line that they could not confirm nor deny an investigation.
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“With some luck the media may dig up the facts and print them without the RCMP having to go public with any details and face the complications that would create,” Sgt. Duncan Pound, then a federal policing spokesman in B.C., wrote to a colleague.
Other emails reveal some of the reasons for the hesitation.
“The heart of the problem is that Health Canada has gone on record as saying they authorized the shipment, which has and will continue to cause us grief trying to set the record straight,” Pound wrote.
“Ideally,” he continued, Health Canada should issue a statement saying the shipments contravened regulations and were not what they had authorized. “If Health Canada says nothing it looks like two Ministries working against each other, which is a lose/lose for both of us.”
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Jolene Bradley, the RCMP’s director of strategic communications in Ottawa, presented a briefing document to the deputy commissioner for federal policing on April 10 advising that the force should continue to decline comment. Among the reasons she cited: going public “would likely bring criticism on Health Canada’s part as it would highlight the deficiencies in the transition to the new regulations.”
The same document also stated that “any comments by the RCMP could impact stock prices” for the producers.
Dawn Roberts, an RCMP communications strategist in B.C., similarly wrote in an email to colleagues that Tweed “is a publicly traded company and any comments could impact on stock prices.”
Pressure, however, was starting to build “from higher up to proactively correct the story,” RCMP emails say.
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The force eventually issued its first public statement about the March 31 seizures on April 11. But the press release was whittled down considerably from a draft version. The draft included the size of the seizure (705 kilograms) and the reason: regulations allowed for a pre-determined number of plants to be sold, but the shipments consisted of “harvested marijuana in lieu of plants.”
The final version of the statement did not mention the size of the seizure nor the specific reason, simply stating: “The marijuana did not match what was authorized to be transferred.”
No charges were ultimately filed against either company due to the challenge of proving criminal intent, RCMP briefing notes say. The seized marijuana, which caused a rotting smell in RCMP storage, was later destroyed.
• Email: dquan@postmedia.com | Twitter: dougquan
https://potfacts.ca/health-canada-and-the-licensed-producers-have-both-hidden-dangerous-cannabis-contamination-from-the-public/
https://www.rollitup.org/t/ontario-cannabis-producer-caught-relabelling-black-market-weed-to-make-it-look-legal.996001/
https://www.cbc.ca/news/canada/manitoba/bonify-licence-reinstated-after-health-canada-suspension-1.5332637
https://www.cbc.ca/news/canada/manitoba/bonify-cannabis-producer-no-charges-rcmp-lawsuit-dismissal-1.5070578
https://cannabislifenetwork.com/lps-moral-high-ground-stance-up-in-smoke-over-contamination-scandals/
https://potfacts.ca/rcmp-cover-up-lp-crimes/
There was no shortage of negative Cannabis news stories up until about 6 months ago.
July 26, Old Courthouse. 5200 kg flowers & 7200 kg oil bust
That calls for life in prison, assets seized, children taken away.
Let,s see if they get a slap on the wrist, Crappy Growth style.
https://cannabislifenetwork.com/fraud-charges-canntrust/
SO THE GAME CONTINUES!! WE WAIT SOME MORE
("CannTrust" or the "Company") has become aware of the press release issued today by the Ontario Securities Commission (the "OSC") announcing that three former directors and officers at CannTrust (namely, Eric Paul, Peter Aceto and Mark Litwin) have been charged with offences under the Securities Act (Ontario) in connection with their alleged involvement in efforts to conceal the illegal growing of cannabis at CannTrust over a 10-month period in 2018 and 2019 and, in the case of Messrs. Paul and Litwin, their alleged trading in the Company's shares while in possession of the material, undisclosed information regarding the unlicensed growing. No charges have been laid against CannTrust, any of its subsidiaries or any of the current directors, officers or employees of CannTrust.
CannTrust logo (CNW Group/CannTrust
Holdings Inc.)
Mr. Paul is a former CannTrust chairman, who resigned all offices with the Company on July 25, 2019, in response to a demand made by the other members of CannTrust's board of directors. That demand followed a recommendation made by a special committee of the CannTrust Board, which had been appointed earlier to investigate the circumstances surrounding the Company's non-compliance with Health Canada regulations and ancillary matters. Mr. Aceto is the Company's former Chief Executive Officer, who was terminated for cause by the CannTrust Board on July 25, 2019, also as a result of the special committee's findings and recommendations. Mr. Litwin is a former director and vice chairman of the Company, who resigned from the CannTrust Board on March 12, 2021.
Since the completion of the special committee's investigation in 2019, CannTrust has been building best in class governance and compliance structures and processes. Regulatory compliance, risk management, and effective oversight have become integral to everything the Company does. In August 2020, CannTrust's operating licenses were restored by Health Canada and the Company resumed operations shortly thereafter.
CannTrust remains focussed on resolving its civil litigation claims and fully restoring its operations as a leading Canadian recreational and medical cannabis producer. The Company anticipates announcing the engagement of a replacement independent auditor during the third quarter and has initiated discussions with the OSC about proposing a plan and timetable for curing CannTrust's historical disclosure defaults, with a view towards later applying to the OSC for a discretionary order revoking the OSC's cease-trade order dated April 13, 2020. Those discussions remain at a preliminary stage, curing CannTrust's historical disclosure defaults will require a considerable amount of management time and expense and there can be no assurance at this stage that the Company will be successful in obtaining an order from the OSC or obtaining a listing for CannTrust's common shares before the end of the year, or at all.
About CannTrust
CannTrust is a federally regulated licensed cannabis producer. We are proudly Canadian, operating a portfolio of brands including estora, Liiv and Synr.g, specifically designed to surprise and delight patients and consumers.
At CannTrust, we are committed to providing an exceptional customer experience, as well as consistent and quality products through standardized processes. Our greenhouse produces Grade A cannabis flower, which is currently sold in dried flower, oil drops and capsule formats. Founded in 2013, our continued success in the medical cannabis market and subsequent expansion into the recreational business, led to us being named Licensed Producer of the Year at the Canadian Cannabis Awards 2018.
CannTrust is committed to research and innovation, investing in developing technologies for new products in the medical, recreational, and wellness markets, while contributing to the growing body of evidence-based research regarding the use and efficacy of cannabis.
what does this mean for shareholders... ? I have 10 shares left... I had several thousand but sold out a few years back, with a handsome profit... then I read about this gaining pearshape... have the shareholders been wiped out here...?
WE ARE ALIVE!!
ALMOST LIKE A REAL COMPANY-AGAIN
"CannTrust Holdings Inc. ("CannTrust" or the "Company") announces it is re-entering the Canadian medical cannabis market today with its new medical brand estoraTM and will begin serving patients immediately.
CannTrust Logo (CNW Group/CannTrust Holdings Inc.)
estoraTM builds on CannTrust's foundation of consistent, high quality products, with a focus on providing superior patient care in every interaction, connecting patients, health care practitioners and partners with the educational resources and products they need to navigate each patient's unique medical cannabis journey.
"Since our inception, we have been dedicated to providing Canadians with consistently high-quality medical cannabis," said Greg Guyatt, Chief Executive Officer at CannTrust. "We're delighted to be launching our new medical brand estoraTM with a portfolio of medical cannabis products including oil drops, capsules and dr
"We believe it was imperative to evolve our strong foundation in medical cannabis to meet the changing needs of our patients," said Guyatt. "estora™ has patient care at its core. We consulted patients and health care practitioners, learning more about their needs and refining our processes and product offerings to elevate their experience with us."
CannTrust remains under CCAA protection to facilitate its efforts to resolve its civil litigation claims and complete its review of strategic alternatives. These efforts are ongoing and confidential, and the Company is unable to predict either their timing or their outcome. In the meantime, with the reinstatement of its cannabis licenses and the ongoing restoration of its operations, CannTrust's re-entry into the medical cannabis business segment is an important part of its focus on rebuilding trust by delivering quality, innovative products to its patients and customers.
About estoraTM
estoraTM is a Canadian medical cannabis brand. Our portfolio has been designed with patients in mind, with easy-to-use formats and standardized processes, that ensure consistency and quality in every bottle. We're not just a medical cannabis provider, but a partner, providing guidance and support for our patients on their journey with medical cannabis, so they can focus on what's really important. "
Further moves by management towards moving the company closer to obtaining listing qualifications
Keeps the hope alive !!
"CannTrust Holdings Inc. ("CannTrust," or "the Company") today announced that the Ontario Superior Court of Justice, Commercial List, granted an order in the Company's proceeding under the Companies' Creditors Arrangement Act ("CCAA") extending the time for CannTrust to call the next annual meeting of its shareholders to a date 120 days following the completion of its CCAA proceeding.
The forward-looking information and statements in this news release include statements relating to the planned restart of manufacturing operations and the expectation that CannTrust's cannabis product will be available in the Canadian medical and recreational markets in Q4 2020. Forward-looking information and statements necessarily involve known and unknown risks, including, without limitation: the outcome of the Company's contingent liabilities; the impact of potential regulatory investigations; the Company's review of strategic alternatives; 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; the ability of CannTrust to effectively resume its cannabis growing, process and packaging operations, the ability of CannTrust to implement its business strategies, and the potential impact of the COVID-19 pandemic on CannTrust's customers and patients, the financial viability of the Company, and general economic conditions.
Obviously management trying to keep company alive
" ("CannTrust," or "the Company") today announced that the Company is seeking an order in its proceeding under the Companies' Creditors Arrangement Act ("CCAA") extending the time for CannTrust to call the next annual meeting of shareholders to a date 120 days following the completion of the Company's CCAA proceedings. The motion is scheduled to be heard before a judge of the Ontario Superior Court of Justice, Commercial List, on September 16, 2020 at 12:00 p.m., judicial videoconference via Zoom due to the COVID-19 emergency."
Finally! Hopefully management can achieve relisting and rebuild the company
"[Over the past 12 months, CannTrust has been working diligently to resolve regulatory deficiencies within its business. On May 29, 2020, the Company confirmed it had received notice of license reinstatement for its Fenwick Perpetual Harvest Facility and immediately recommenced cultivation operations at this location, which are proceeding as planned.
"Our license reinstatement is the result of an enormous amount of hard work by the CannTrust team," said Greg Guyatt, Chief Executive Officer at CannTrust. "Today marks the beginning of the next chapter in CannTrust's history. We have used the last 12 months to improve every aspect of our business, placing a determined focus on regulatory compliance as we remediated, restructured, and evolved. We are excited to return to work with our partners to provide our consumers and patients with high-quality cannabis products."
CannTrust will restart manufacturing operations at its Vaughan facility imminently. With all licenses now reinstated, the Company expects to have cannabis products available during the fourth quarter of 2020.
"CannTrust has undergone significant organizational and operational changes as part of our remediation activities," said Dr. Ilana Platt, the Company's Chief Regulatory Officer. "Regulatory compliance, risk management, and effective oversight are integral to everything we do."
CannTrust remains under CCAA protection to facilitate the Company's efforts to resolve its civil litigation exposures and complete its review of strategic alternatives. These efforts are ongoing, and the Company is unable to predict either their timing or their outcome. In the meantime, the Company remains without meaningful revenues and has terminated or laid-off a significant portion of its workforce. CannTrust plans to begin operations at its Vaughan facility immediately following today's announcement as an important next step towards rebuilding stakeholder trust and delivering high-quality, innovative products to its patients and customers.
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."/b]
I'm a lucky SOB … Not because I'm smart but seeing a great opportunity, I went all in on Else (Baby) selling all my TRST and telling myself i could buy back a little later if required.
Sorry for those less fortunate and GLTA
UGLY
An anonymous director reports
CANNTRUST OBTAINS INITIAL ORDER UNDER COMPANIES' CREDITORS ARRANGEMENT ACT (CANADA)
Canntrust Holdings Inc. has obtained an order from the Ontario Superior Court of Justice (Commercial List) granting protection under the Companies' Creditors Arrangement Act (Canada). In accordance with the Initial Order, all creditors of Canntrust, Canntrust Inc., CTI Holdings (Osoyoos) Inc., and Elmcliffe Investments Inc. (the "Applicants"), as well as the plaintiffs in the putative class actions and other litigation brought against the Applicants, will be stayed from enforcing their claims. The Initial Order provides for a stay of proceedings in favour of the Applicants for an initial period of 10 days, subject to such extensions as the Court may subsequently order, and the appointment of Ernst & Young Inc. as Monitor in the CCAA proceedings.
After reviewing a number of options, Canntrust's Board of Directors determined that commencing CCAA proceedings is in the Company's best interests. The Company hopes to exit CCAA protection well-positioned to rebuild its stakeholders' trust and deliver high-quality, innovative products to its patients and customers.
Pursuant to the Initial Order, the Court has granted a stay of proceedings that will allow Canntrust to, among other things:
Complete the remainder of Canntrust's remediation plan for its Vaughan Facility without disruption and submit the related evidence package to Health Canada;
Continue to work with Health Canada to resolve any remaining Cannabis Act compliance issues, with a view towards reinstating Canntrust's licenses for its Niagara and Vaughan facilities and restoring operations;
Explore a CCAA plan of compromise or arrangement as a means for addressing the multiple putative class actions and other litigation brought against Canntrust in several jurisdictions, seeking to resolve all of the claims and contingent claims against the Company in a single forum; and
Facilitate the completion of the Board of Directors' review of strategic alternatives (the "Strategic Process"), including the solicitation, development and execution of any potential sale or other strategic transaction involving Canntrust, whether in addition to, or as an alternative to, a CCAA plan of compromise or arrangement.
Despite the efforts by Canntrust's management and Board of Directors to preserve the Company's cash liquidity while seeking to restore the Company to operations and resolve the multiple litigations and other contingent claims facing the Company, the Company's future remains uncertain. Without its cannabis licenses, the Company has been unable to generate any meaningful revenue since June 2019. The Company has not filed any financial statements subsequent to its interim unaudited comparative financial statements for the three months ended March 31, 2019, which, together with its financial statements for the year ended December 31, 2018, are subject to restatement. Furthermore, the effects of the COVID-19 pandemic have exacerbated what were already difficult circumstances, introducing potential delays in Health Canada's ability to review the Company's applications for reinstatement of its Niagara and Vaughan licenses and making it even more challenging for Canntrust to attract new financing or a strategic partner.
Canntrust is expending significant time and money pursuing the completion of its remediation plan and defending the putative class actions against the Company in multiple jurisdictions. There can be no assurance that Health Canada will reinstate Canntrust's licenses or that the Company's litigation will be resolved in the near term or on a basis that will leave the Company with sufficient financial resources to resume operations. At present, and in light of seeking CCAA protection, its reduced liquidity position and the contingent claims it is facing, the Company does not intend to devote additional time or money towards curing its public disclosure defaults by completing and resuming the filing of required reports under Canadian and United States securities laws. As of March 20, 2020, Canntrust had a cash balance of approximately $145 million. If Health Canada elects to reinstate Canntrust's cannabis licenses, it would take several months for the Company to begin earning revenue and the Company would require significant working capital to restore its operations and return to profitability. Similarly, there can be no assurance that the Strategic Process will result in any transaction, and there can be no assurance that the Strategic Process or the outcome of the CCAA proceeding will provide any residual value for the benefit of holders of the Company's Common Shares.
Trading in Canntrust's common shares (the "Common Shares") on the Toronto Stock Exchange (the "TSX") and New York Stock Exchange (the "NYSE") has been halted and the Company expects that, as a result of having filed for protection under the CCAA, the Common Shares will soon be delisted from trading on the TSX and NYSE. In addition, Canntrust anticipates that, as a result of the Company's filing for protection under the CCAA, its pending delisting by the TSX and NYSE, and its continuing default of its disclosure obligations under applicable securities laws, provincial securities regulators in Canada will issue a cease trade order to prevent any trading in the Common Shares in Canada.
A comeback hearing in respect of the relief granted pursuant to the Initial Order will be scheduled within ten days (the "Comeback Hearing"). Interested parties that wish to bring a motion at the Comeback Hearing are required to provide notice to the affected parties prior to the Comeback Hearing pursuant to the requirements set forth in the Initial Order.
A copy of the Initial Order and other information will be available on the Monitor's website at http://www.ey.com/ca/Canntrust.
Very sad turn of events. Sorry
Canntrust Holdings Inc (C-TRST) - News Release
Canntrust receives protection under CCAA
2020-03-31 12:00 AT - News Release
Shares issued 141,487,193
TRST Close 2020-03-30 C$ 0.91
An anonymous director reports
CANNTRUST OBTAINS INITIAL ORDER UNDER COMPANIES' CREDITORS ARRANGEMENT ACT (CANADA)
Canntrust Holdings Inc. has obtained an order from the Ontario Superior Court of Justice (Commercial List) granting protection under the Companies' Creditors Arrangement Act (Canada). In accordance with the Initial Order, all creditors of Canntrust, Canntrust Inc., CTI Holdings (Osoyoos) Inc., and Elmcliffe Investments Inc. (the "Applicants"), as well as the plaintiffs in the putative class actions and other litigation brought against the Applicants, will be stayed from enforcing their claims. The Initial Order provides for a stay of proceedings in favour of the Applicants for an initial period of 10 days, subject to such extensions as the Court may subsequently order, and the appointment of Ernst & Young Inc. as Monitor in the CCAA proceedings.
On march 24 I sold most of my position at above $1 (cdn) and I now try to buy it back in the mid 50's. I wasn't worried in selling assuming I could buy back in later but honestly did never thought I coud buy back at such a low price.
I believe management will end up becoming compliant again and the Virus will some day become less of a problem. Assume that Trump will stop acting as an incompetent stupid man and TRST PPS may very well go back to more realistic PPS
This being said, patience will be required for at least the remaining of the year.
GLTA
Not good news but not too bad. TRST has 6 months to become compliant and remains trading until then.
"CANNTRUST HOLDINGS INC (C-TRST) - News Release
ORIGINAL: CannTrust Receives Continued Listing Notice from the NYSE
2020-02-28 08:57 CT - News Release
TRST Close 2020-02-27 C$ 0.92
VAUGHAN, ON, Feb. 28, 2020 /PRNewswire/ - CannTrust Holdings Inc. ("CannTrust" or the "Company", TSX: TRST, NYSE: CTST) announced today that on February 27, 2020 the Company received written notification from the New York Stock Exchange (the "NYSE") that CannTrust is no longer in compliance with the NYSE's continued listing standard rules because the per share trading price of the Company's common shares has fallen below the NYSE's share price rule. The NYSE requires the average closing price of a listed company's common shares to be at least US $1.00 per share over a consecutive 30 trading-day period. As of February 25, 2020, the 30 trading-day average closing price of the Company's common shares was US $0.99.
In accordance with the NYSE's rules, CannTrust has six months from the receipt of the notice to regain compliance. During this time period, the Company's common shares will continue to be listed and trade on the NYSE as usual.
Under NYSE rules, CannTrust can regain compliance at any time during the six-month period if its common shares have a closing price of at least US $1.00 on the last trading day of any calendar month during the period and also have an average closing price of at least US $1.00 over the 30 trading-day period ending on the last trading day of that month or on the last day of the cure period.
TRST update gives us some guidelines for the future.
First quarter of 2020[Jan,Feb,Mar] Niagara Facility remediation completed and reported to HC
Second quarter [Apr, May, Jun] Vaughan Facility completed and reported to HC’
Then completed historical financial reports required by HC will be filed. Then, and only then, will the company, hopefully, receive compliance approval from HC and the future of the company can be resolved by compliant decisions of management.
The update was obviously drafted with legal advice. Thus the listing of liabilities was a necessary inclusion.
As much as shareholders would like “glowing accounts”, reality MUST be evident at this stage.
So patience by shareholders must be exercised if we hope to see any future recovery. Do your own DD.
Finally a substantive report from management! Application to Health Canada for reinstatement of operations and new CEO placement and NYSE extension request. Light at the end of the tunnel is brighter and blue.
" CannTrust Holdings Inc. ("CannTrust" or the "Company", TSX: TRST, NYSE: CTST) announced the appointment of Greg Guyatt as the Company's Chief Executive Officer and provided an update on the status of both its remediation plan and its New York Stock Exchange ("NYSE") listing.
Remediation Plan Update
CannTrust announced that it will be submitting on February 14, 2020 documentation to Health Canada regarding the completion of the Company's remediation activities at its Niagara Facility. This filing will be made in support of the reinstatement of that facility's licences.
CannTrust anticipates that remediation activities at the Company's Vaughan Facility will reach completion during the second quarter of 2020. The Company intends thereafter to submit the required documentation to Health Canada in support of the reinstatement of that facility's licenses.
Ultimately, any decision to reinstate the Company's licenses, and the timing and conditions of any such reinstatement, will rest solely with Health Canada. No assurance can be given that Health Canada will reinstate either the Niagara or Vaughan Facility licenses.
With its previously-announced completion of the investigation following CannTrust's receipt of non-compliance reports from Health Canada in July 2019, and with the submission of the Company's remediation package with respect to its Niagara Facility and the expected submission of the Company's remediation package with respect its Vaughan Facility during the second quarter of 2020, the special committee (the "Special Committee") appointed by CannTrust's Board of Directors will focus its attention on identifying and considering potential strategic alternatives for the Company. The Special Committee was appointed in July 2019 to investigate the circumstances surrounding the Company's receipt of non-compliance reports from Health Canada, to both provide oversight for the development and execution of the Company's remediation plan and review strategic alternatives.
The Company reminds readers that CannTrust remains in default of its disclosure obligations under securities legislation, has no meaningful revenues, has terminated or laid-off a significant portion of its workforce, is facing a variety of regulatory investigations, and has significant contingent liabilities in both Canada and the United States, including for potential civil damages and potential criminal, quasi-criminal or administrative penalties and fines, which cannot be reasonably quantified. The nature, timing, and outcome of the Special Committee's ongoing strategic review process will be influenced by, among other things, CannTrust's ability to extend or renew itsinsurance coverage on acceptable terms, whether or when Heath Canada reinstates the Company's licenses, how long it will take to restore operations and expectations regarding the resolution of the Company's contingent liabilities and potential regulatory actions. The Company's cash position as at January 31, 2020 was approximately $167 million.
Appointment of Chief Executive Officer and Interim Chief Financial Officer
CannTrust also announced that the Board of Directors has appointed Greg Guyatt, the Company's current Chief Financial Officer, as Chief Executive Officer ("CEO"), replacing interim CEO Robert Marcovitch, who will both remain with the Company as non-executive Chairman of the Board of Directors and resume his role as a member of the Special Committee. Mr. Marcovitch had assumed the role of CannTrust's Chairman and interim CEO in July 2019, following steps taken by the Board of Directors to remove senior personnel from the Company who were believed to have caused or acquiesced in the Company's serious compliance failures and other transgressions related to the matters that were the subject of the Health Canada non-compliance reports. These steps included the termination of the Company's former CEO for cause and the forced resignation of the Company's former Chairman. During Mr. Marcovitch's tenure as interim CEO, the Company also took steps to improve the Company's corporate culture and regulatory compliance and to remediate its facilities.
Greg Guyatt, who joined CannTrust in February 2019 as Chief Financial Officer ("CFO"), is a Chartered Professional Accountant. Mr. Guyatt previously served as the CFO of GreenSpace Brands, Inc., a premium natural food product company, and brings nearly 25 years of experience leading finance teams from the consumer packaged goods, pharmaceutical, and private equity sectors. With Mr. Guyatt's appointment, David Blair, currently the Company's Vice-President of Finance, will assume the role of interim CFO. The Company has initiated a process to identify a permanent CFO.
New York Stock Exchange Listing Update
CannTrust also announced that it has received an extension for continued listing and trading of the Company's common shares on the New York Stock Exchange. The extension granted by the NYSE, subject to ongoing reassessment by the NYSE, provides the Company with an additional trading period through April 15, 2020 during which it can file with the U.S. Securities and Exchange Commission the restatement of its Form 40-F for the fiscal year ended December 31, 2018 and file its interim financial report for the six months ended June 30, 2019 on Form 6-K.
All the talk of imminent delisting of TRST is unwarranted
.The PR of November states reality
“On November 26, 2019, CannTrust announced that, as a result of the delay in filing the aforementioned financial disclosures, the Toronto Stock Exchange (the "TSX") intended to review the Company's eligibility to continue listing its common shares. The TSX advised that if the Company is unable to satisfy its disclosure requirements by March 25, 2020, the Company's securities will be delisted 30 days following this date. The Company fully anticipates filing the associated disclosures and meeting the TSX's requirements prior to March 25, 2020.”
Further, the company had in December placed their staff on a mandated 4 month notice that after that date, employment could be ended for all staff.
In statements, management said they were confident they could meet the deadlines. Only time will tell.
management has released an interm report as it continues to try and be compliant with Health Canada demands
CANNTRUST PROVIDES PROGRESS UPDATE REGARDING REMEDIATION PLAN
Canntrust Holdings Inc. has provided a progress update regarding:
The submission of Canntrust's detailed remediation plan to Health Canada; the company anticipates completing all of the activities described within the plan by the end of the first quarter of 2020;
The conclusion of the special committee's independent investigation, the findings of which have been accepted by the company's board of directors;
A further temporary reduction in Canntrust's work force to align with reduced operations following Health Canada's partial suspension of its licences;
Anticipated timing for the filing of Canntrust's financial statements.
Submission of remediation plan to Health Canada
Canntrust submitted its detailed remediation plan to Health Canada on Oct. 21, 2019. The remediation plan specifies the actions the company has both taken and intends to take to address the measures identified by Health Canada as necessary for the reinstatement of the company's licences. It includes details about an expanded comprehensive internal training program, a strengthened governance and operations framework, infrastructure enhancements, and prescribed accountabilities and timelines for a variety of specified tasks. In addition, as outlined in the company's news release dated Oct. 15, 2019, these actions include the destruction of both biological assets and inventory that were not authorized by the company's licence. The company will also take steps to recover all cannabis from distributors and retailers that has not already been sold to end consumers or returned to Canntrust.
The company anticipates completing all of the activities described within its remediation plan by the end of the first quarter of 2020, although completion will be subject to Health Canada's input and approval. To that end, the company and Health Canada have already engaged on various aspects of the remediation plan.
"Canntrust is confident that its remediation plan addresses all of the compliance issues identified by Health Canada," stated Robert Marcovitch, Canntrust's chairman and interim chief executive officer. "The company has already made significant progress in this regard, and is committed to completing all of the remediation actions outlined in the plan, with input from Health Canada as appropriate. We believe that, taken together, these actions will establish a strong compliance culture that will meet regulatory standards."
Conclusion of special committee's investigation
Canntrust's special committee was formed following the company's receipt of non-compliance reports from Health Canada on July 8, 2019. The special committee's mandate included completing an independent investigation to identify the causes of the company's regulatory non-compliance, developing a plan for addressing those causes, providing oversight for any operational actions necessary to bring the company into regulatory compliance and evaluating the company's strategic alternatives.
The special committee's investigation into the company's regulatory non-compliance went beyond the observations in the Health Canada compliance reports, and included a comprehensive independent review of the company's e-mail and other documents, as well as interviews with current and former employees, certain members of senior management, and all members of the current board of directors.
The special committee has shared its findings with the company's board of directors and Health Canada, and this aspect of the special committee's mandate is now complete.
"Over the past three months, the special committee has worked tirelessly with its legal counsel and other professional advisers to complete a thorough and independent investigation," stated Mark Dawber, chair of the special committee. "Importantly, the special committee's investigation found no evidence that any of the remaining members of the board were aware of or engaged in any non-compliance issues."
"I am very appreciative of the special committee's determined efforts to complete the investigative phase of its mandate. Leveraging the special committee's findings, Canntrust has taken swift action to begin addressing the factors that led to its non-compliance, including several involuntary departures from the company's leadership team," stated Robert Marcovitch. "Our focus is now firmly on the future, strengthening our executive leadership through the addition of operational and regulatory expertise. At the same time, we are acting to improve the company's governance practices and to attract new directors as part of a board renewal process."
Rightsizing cost structure pending licence reinstatement
To maximize efficiencies and maintain a strong balance sheet, the company will temporarily streamline its work force by as many as 140 people, or approximately one-quarter, through a series of phased layoffs between late October and the conclusion of 2019. This action is prudent because of the company's significantly reduced operations following Health Canada's partial suspension of its licences. The head count reductions are expected to result in monthly cash savings of approximately $400,000, and the company will incur severance of up to $800,000 in the event that employees are not recalled within 35 weeks. The realized cash savings as a result of this layoff will be dependent on the timing of employee recalls pending reinstatement of the company's licences by Health Canada.
"This was a difficult decision, but it is imperative that our work force reflects the current requirements of our business," said Mr. Marcovitch. "Reducing the company's current operating expenses supports our financial sustainability, and places us in the best position to fully resume production upon the reinstatement of our licences. We look forward to rehiring at that time and once again delivering high-quality, innovative products to both our customers and patients."
Timing of financial statements
Canntrust continues to work closely with its professional advisers, with a view toward refiling its restated audited financial statements for the year ended Dec. 31, 2018, its restated interim financial statements for the first quarter of 2019, and its interim financial statements for the second and third quarters of 2019, together with the related management's discussion and analysis for the corresponding periods, within the next 60 days. The actual timing for filing these statements may be affected by intervening events.
Default status report
In accordance with its obligations under the alternative information guidelines set out in National Policy 12-203 (Management Cease Trade Orders), which require the company to provide biweekly updates until such time as the company is current with its filing obligations under Canadian securities laws, this new release is intended to supplement the information contained in the company's news releases dated Aug. 15, Aug. 29, Sept. 12, Sept. 26 and Oct. 10, 2019. The company intends to continue to comply with the alternative information guidelines of NP 12-203 and confirms that, except as previously disclosed, there are no subsequent specified defaults (actual or anticipated) within the meaning of NP 12-203.
We seek Safe Harbor
Latest ruling by Health Canada can.perhaps, give hope to TRST shareholders.
"Health Canada reinstates Bonify's cannabis sales license
WINNIPEG-based cannabis producer Bonify has had its federal sales licence reinstated, after a 2018 scandal in which the company obtained cannabis from an illegal source, then sold it on the legal market. "Bonify now fully addressed."
This shows that reform may be recognized for redemption.
I still think we have to wait for RCMP and Ontario Police report before Canada Health will grant full acceptance to management
Here we go!! Important message from management- hopefully detailing moves to restore the company to compliance
" CannTrust Holdings Inc. ("CannTrust" or "the Company", TSX: TRST, NYSE: CTST) announced that it continues to make significant progress on its commitment to take any and all actions required to both bring the Company into full regulatory compliance and seek the full reinstatement of its licenses.
On September 17, 2019, CannTrust announced that Health Canada had suspended the Company's licenses to produce cannabis and sell cannabis, without affecting the Company's ability to continue cultivating and harvesting cannabis. The Company will not challenge Health Canada's partial suspensions and remains focused on working collaboratively and transparently with the regulator to address the Company's non-compliance matters. In pursuit of this goal, the Company has provided Health Canada with an outline of its proposed remediation strategy. This strategy is aimed at implementing the measures identified by Health Canada as necessary to attempt to address the regulator's concerns, namely:
Measures to ensure that cannabis will be produced and distributed only as authorized, including measures to control the movement of cannabis in and out of CannTrust's site;
Measures to recover cannabis that was not authorized by CannTrust's license;
Measures to improve key personnel's knowledge of, and compliance with the provisions of the Act and the Regulations that apply to CannTrust; and,
Measures for improving the manner in which records are kept, including a plan to improve the inventory tracking, and any interim measures to ensure that information provided to Health Canada can be reconciled.
In order to implement these measures, CannTrust's Board of Directors has determined that it is necessary to destroy approximately $12 million of biological assets and approximately $65 million worth of inventory that was not authorized by CannTrust's licence. The exact amount of material destroyed will be validated and verified once the destruction is complete. The inventory being destroyed includes product that was returned by patients, distributors, and retailers. Given the status of its licenses, the Company is unable to process the material being destroyed or sell it to other licensed producers. The destruction process will allow the Company to free up much needed capacity to both implement remediation measures and store material that has been grown and processed in accordance with the Company's license since April 5, 2019.
The destruction of the impacted inventory is both an essential and integral part of CannTrust executing its remediation plan, as well as addressing Health Canada's remediation expectations. The Company will provide a detailed remediation plan to Health Canada on or before October 21, 2019. This plan will aim to address all of the measures identified by Health Canada as necessary for the reinstatement of the Company's licenses.
"CannTrust is confident that its detailed remediation plan will not only address all of the compliance issues identified by Health Canada, but it will also build a best-in-class compliance environment for the future," stated Robert Marcovitch, the Company's interim Chief Executive Officer. "We have already made significant progress in these efforts. Our goal is to meet and exceed Health Canada's regulatory standard, and to rebuild the trust and confidence of our primary regulator, investors, patients, and customers."
Mandated update from management
" ("CannTrust" or the "Company", TSX: TRST, NYSE: CTST) today is providing a status update in accordance with its obligations under the alternative information guidelines set out in National Policy 12-203 – Management Cease Trade Orders ("NP 12-203"), which require the Company to provide bi-weekly updates until such time as the Company is current with its filing obligations under Canadian securities laws. As previously announced, the Company is subject to a management cease trade order ("MCTO") issued by the Ontario Securities Commission. The MCTO prohibits the directors and executive officers of the Company from trading in or acquiring securities of the Company until two full business days after the Company files an interim financial report for the three and six month periods ended June 30, 2019, an interim management's discussion and analysis for the corresponding period and certifications of interim filings. The MCTO does not affect the ability of investors who are not insiders to trade in the securities of the Company."
A little softer approach from G&M
"The Globe and Mail reports in it's Wednesday, Sept. 18, edition that Health Canada handed Canntrust Holdings a slim shot at redemption by setting out the steps the company must take to win back government licences that are now suspended. The Globe's Andrew Willis writes that is dubious there will be comeback. If management can somehow work it's way back into the federal regulator's good books -- no easy task -- it is likely to be a rival cannabis producer that benefits, by swooping in to snap up the company's assets. As the poster child for all that has gone wrong with marijuana legalization, Canntrust's name is mud in the capital markets, and it will struggle to get the cash it needs to survive and rebuild. Canntrust owns everything needed to become a credible player in cannabis -- except, now, credibility and licences. It has massive greenhouses in the Niagara region, a processing facility in Vaughan, Ont., a portfolio of recreational cannabis brands and more than 70,000 medical marijuana customers. What Canntrust lacks is the ability to do anything with those assets, except perhaps to cough them up to somebody else. Health Canada formally suspended Canntrust's production licences on Tuesday.
I had hoped there would be a cease trading ruling on TRST PERIOD! Looks like its only on management. Sad for shareholders.
This should have happened weeks ago but finally woke up!!
The Globe and Mail reports in its Saturday, Aug. 17, edition that Canntrust Holdings says the Ontario Securities Commission has approved a management cease-trade order. A Canadian Press dispatch to The Globe reports that the OSC order prohibits Canntrust directors and executive officers from trading in company securities until two full business days after it makes all of its required filings. Canntrust sought the order earlier this month in anticipation of missing an Aug. 14 deadline to file an interim financial report for the three and six month periods ended June 30. Canntrust says the filings will depend, in large measure, upon the timing and impact of Health Canada's decisions regarding its non-compliance with regulatory requirements. "Although the special committee is directing the company to work closely with Health Canada to remediate the root causes of any non-compliance identified by Health Canada, to date, the company has not had any substantive discussions with Health Canada concerning remediation matters," Canntrust said in a statement. Canntrust said it is working with the regulator to prepare a remediation plan for submission, but cannot say when the problems will be resolved."
Possible sign that the company can continue to function??
"TSX: TRST, NYSE: CTST) has received a notice from the Ontario Cannabis Store (the "OCS"), the Crown corporation in charge of wholesale distribution of cannabis products to licensed cannabis retailers in Ontario and the operator of Ontario's online recreational cannabis store, advising the Company that the OCS has determined certain of the Company's products sold to the OCS are Non-Conforming Products under the terms of the Master Cannabis Supply Agreement between the Company and the OCS (the "Master Agreement") and that the OCS has elected to return these products to the Company. Under the terms of the Master Agreement, any product that does not comply with applicable law is considered to be Non-Conforming Product and the OCS may elect to exercise its right, among others, to return such product to the Company at the Company's expense.
The products listed in the OCS return notice constitute all or substantially all of the Company's products currently held at the OCS and are valued at approximately $2.9 million in the aggregate. The Company intends to fully perform its obligations under the Master Agreement. The OCS operates independently of Health Canada. Health Canada has not ordered a recall in respect of any of the Company's products.
About CannTrust
CannTrust is a federally regulated licensed producer of medical and recreational cannabis in Canada. Founded by pharmacists, CannTrust brings 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.
My “Experts” have come up with some possible actions By Health Canada
First, the terminated Mr.Peter Aceto and the resignated Mr. Eric Paul will be criminally charged by OSC, RCMP and Ontario Police.
They believe Their sale of $6 million dollars by the two will be demanded to be repaid. Other monetary claims may be made as well.
Also, ALL shares held by these persons will be seized and cancelled!
Any other employees who were aware of the attempted fraudulent production of the cannabis will be subject to criminal charges. The “I was just following orders” is NOT a legal excuse!
The question of what should be done with the illegally produced 12,700 Kilograms of cannabis a more difficult question to be decided by Health Canada.
They could decide to destroy the cannabis. But the federal and provincial government would lose the tax revenue.
There is a shortage of cannabis in Canada.
Since the shares of those who were found criminally at fault will be seized, perhaps Health Canada will mitigate the losses of legal shareholders by returning the cannabis to the company. I CAN DREAM
There will be some financial penalty charged to TRST as well.
There are 2 possible scenerios that Health Canada possibly would consider. Allow the new management group, under strict rules of compliance. OR A THIRD PARTY BY ANOTHER approved Cannabis company would purchase the company
Personally, I feel the shares of TRST should have been halted at the first report of a possible problem . But shareholders buy any shares of any company realising that there is RISK
Huge volume at the close and significant move higher. Long way to go for recovery but perhaps a start.
Will be interesting to see Monday development
Just sell assets to APHA at a severe discount; and APHA gets out of having to pay any fines levied against CannTrust
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."
Today's news re TRST.
"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 MEDby directors, officers and other insiders."
MY PREVIOUS POSTING OF EARLY JULY SHOWS 2 OUT OF 4 PREDICTIONS CONFIrmed and last still probable!!
Lawyers who I have confidence in their knowledge, have
suggested the following will happen
HC via RCMP will lay criminal charges against Board members who ordered the fraudulent production of cannabis. The workers will not be charged.
A 1 million dollar fine to the company will be levied.
The seized cannibis will be destroyed.
The persons criminally charged should be dismissed by the company and replacements be assignment by the remaining Board members and voted on by the shareholders NOT considered criminal.
Makes sense to me but we will see soon.
Finally an article that makes sense
"inThe Globe and Mail reports in its Saturday, July 27, edition that PI Financial analyst Jason Zandberg says if Canntrust's licensing issue is resolved it "would be the most attractive asset in Canada, given where the stock profile has gone." The Globe's Mark Rendell and Jeffrey Jones write that Mr. Zandberg says, "I'm sure that anyone that's interested in acquiring them would have to sit down with Health Canada and find out what is the likelihood that, under new management, they could continue to operate." Canntrust, which has halted all sales while it deals with its predicament, faces other risks as well, including legal and regulatory ones related to its securities. Canntrust has yet to determine the effect of the situation on its finances, and it is not yet known whether any previous financial results might have to be restated. To date, Health Canada has suspended two pot licences: Ascent Industries and Bonify Medical Cannabis, both for buying from or selling into the black market. In the case of Ascent, after Health Canada announced its intention to suspend its licence, several licensed producers began bidding for its cultivation assets in British Columbia, which were eventually sold to a private company."
HERE WE GO!!
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."
CTST is the most honest company in these parts... keep buying, don't look back. Sell the others, go CTST!
Newest update from management
'The Globe and Mail reports in its Tuesday, July 23, edition that Canntrust Holdings has officially responded to Health Canada's finding that the company ran afoul of its regulations. A Canadian Press dispatch to The Globe reports that Canntrust says on July 17 it filed a response to the regulator's non-compliance report, one day before the July 18 deadline, and it now awaits Health Canada's response. Canntrust confirmed it has appointed sports executive Robert Marcovitch as chairman of its previously announced special committee tasked with probing the matter. Mr. Marcovitch is a Canntrust board director and has previously served as president and chief executive officer of K2 Sports LLC, and CEO of Coleman Outdoor. Canntrust said Monday the special committee's "investigation and deliberations are ongoing." The committee "takes these issues very seriously" and is committed to working with Health Canada to bring Canntrust into compliance, Mr. Marcovitch said. "We are determined to identify the root causes for all non-compliance issues." Canntrust said the other members of the special committee were board directors Shawna Page, Mark Dawber and John Kaden, each of whom are independent of company management.
Looks like we have to see what HC will do to really know
the future of the company-not a surprise.
The Globe and Mail reports in its Friday edition that the board of Canntrust Holdings ($3.84) has hired Bay Street law firm McCarthy Tetrault and appointed sporting goods executive Robert Marcovitch to lead a special committee that is probing how the company illegally grew 12,700 kilograms of weed in unlicensed facilities, and who knew about it. The Globe's Mark Rendell and Andrew Willis write that Health Canada inspector are auditing Canntrust after discovering it grew weed in five unlicensed rooms over a five-month period in its greenhouse in Pelham, Ont. Sanctions could range from penalties for management to the cancellation of the company's cannabis production licences, which would effectively shut down the business. CannTrust's stock price has dropped about 40 per cent since it disclosed the regulatory issues on July 8. The special committee is also expected to hire an investment bank to advise it on how to proceed. Early rumours said the company was looking for a buyer. However, an unnamed source said there is little chance Canntrust would sell major assets until it is clearer what penalties Health Canada will impose. Potential deals or management overhauls will depend largely on the special committee.
Lawyers who I have confidence in their knowledge, have
suggested the following will happen
HC via RCMP will lay criminal charges against Board members who ordered the fraudulent productioon of cannabis. The workers will not be charged.
A 1 million dollar fine to the company will be levied.
The seized cannibis will be destroyed.
The persons criminally charged should be dismissed by the company and replacements be assignment by the remaining Board members and voted on by the shareholders NOT considered criminal.
Makes sense to me but we will see soon.
Something to remember-feel a little better.
Everyone is going to say bad things about CannTrust and they should. Everyone feels duped especially the investment bankers that just gave them $ 170 M USD on a stock underwriting 2 months ago.
That money is still in the bank [I hope-no PR contrary]
Significant news
'"Canntrust Holdings to form hemp JV in California
2019-06-19 07:19 CT - News Release
Shares issued 141,200,314
TRST Close 2019-06-18 C$ 6.65
Mr. Peter Aceto reports
CANNTRUST ESTABLISHES U.S. OPERATIONS
Canntrust Holdings Inc. is establishing operations in the United States, starting in the state of California. Canntrust has signed a non-binding letter of intent ("LOI") that will provide access to over 3,000 acres of farmland for hemp production with Elk Grove Farming Company, LLC ("Elk Grove"), a diversified farming company with operations in the State of California, to secure low-cost hemp with high cannabidiol ("CBD") content. CannTrust and Elk Grove will each have 50% ownership of a new entity (the "Joint Venture").
The opportunity in the U.S. for CannTrust is to become a trusted supplier of consistent, standardized and high-quality hemp-derived CBD formulations at scale. The Company believes there will be increasing demand for hemp-derived CBD formulations from international retailers and product manufacturers, and those organizations require expertise in genetics and value-add processing to ensure products are desirable and meet the highest safety standards.
CannTrust will guarantee the off-take of biomass produced by the Joint Venture, and will use its expertise to process, formulate and sell hemp-derived CBD products in U.S. markets where such sales are lawful. As an experienced operator meeting rigorous regulatory standards, CannTrust is well positioned to execute on this cultivation, processing and formulation strategy with the goal of becoming a leading supplier of hemp-derived CBD products in the U.S.
"This agreement represents another bold move for CannTrust. Our U.S. operation is expected to deliver a significant increase in low-cost production capacity, which will leverage our expertise in standardized CBD-based product formulation, and will give the Company a foothold in the largest international CBD market in the world with an experienced and knowledgeable partner," said Peter Aceto, Chief Executive Officer. "Following our successful equity offering, we have the liquidity we need to fund our ambitious growth plans including our greenhouse expansion in Niagara, our outdoor cultivation operation in British Columbia, our global footprint expansion and now our U.S. operation. We continue to focus on delivering on our vision of becoming a global provider of innovative cannabis-based and hemp-derived products."
Elk Grove has multi-generational experience in farming across a wide variety of commodities and value-added expertise in leading crop protection products, application and input supply with operations throughout the State of California. The team at Elk Grove specializes in consulting on agricultural development and has unique knowledge of farming in California, one of the most prolific agricultural regions in the world.
"We are thrilled to be partnering with CannTrust. Our knowledge of farming operations in California coupled with CannTrust's expertise in developing award-winning formulations is the perfect match to become a trusted supplier of CBD products in the U.S," said Morgan Houchin of Elk Grove Farming Company, LLC.
CannTrust U.S. Operations
This initiative is the first step in CannTrust's development of full-scale U.S. operations. Upon establishment of the Joint Venture in California, CannTrust will have secured a long-term source of significant supply of low-cost industrial hemp from a trusted and proven partner. Prior to commercial scale cultivation from the Joint Venture in 2020, the Company plans to execute on (1) its processing strategy from the biomass produced from the Joint Venture, and (2) its product development strategy.
CannTrust is well positioned to use extracted product from its U.S. operations in proprietary products that have already been developed and that are ready for commercial production (e.g., CannTrust's patented single-serve beverage pods), products currently under development with existing partners, and in formulations required by future partners.
Investment in the U.S. operation is expected to be up to $20 million through to the end of 2020. This capital investment includes the Company's share of cultivation, harvest and post-harvest processing for the Joint Venture, as well as extraction and processing investments that will be funded by CannTrust. This level of capital investment assumes starting with up to 300 acres for cultivation in 2020.
Details of the LOI
The Joint Venture will secure a long-term lease for over 3,000 acres of farmland designated for hemp production in Southern California, which is currently wholly-owned by the Houchin family or through partnership investment. CannTrust will provide its expertise in grow methodology, drying techniques, and experience in extraction, as well as provide genetics that are legal under state and federal law. Elk Grove will lead operations, farm management services, packaging and transportation, and provide suitable land area and warehouse space for drying and value-added handling of the hemp biomass produced.
Both parties will provide equal contribution of capital to finance operations of the Joint Venture, including capital investments, operating expenditures and working capital. All profits will be distributed based on ownership percentage of the Joint Venture.
Upon execution of a binding agreement, commercial operation of the Joint Venture is targeted to begin in 2020, subject to local regulatory approval.
Regulatory Framework
The California Industrial Hemp Farming Act became effective in January 2017. The federal Agricultural Improvement Act of 2018 became effective January 2019, removing hemp from Schedule I of the Federal Controlled Substances Act, thereby removing industrial hemp, which is defined as having less than 0.3% THC content, as a federally regulated controlled substance.
In the State of California, growers of industrial hemp for commercial purposes must register with the county agricultural commissioner prior to cultivation; there is currently no state registration required to grow industrial hemp.
CannTrust, Elk Grove and the Joint Venture intend to develop its cultivation and processing operations according to both federal and state laws.
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 more than 72,000 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 200 acres of land in total for low-cost outdoor cultivation which it will use primarily for its extraction-based products."
, TSX: TRST, NYSE: CTST) strengthened its senior leadership team with the appointment of Dr. Len Walt, M.D., MBA, to the newly created position of Chief Medical Officer ("CMO").
Dr. Walt will lead the global medical function dedicated to strengthening CannTrust's clinical research strategy, medical education programs, product innovation and support the expansion of CannTrust's global medical businesses and partnerships.
"Adding Dr. Walt to our senior leadership team supports our commitment to developing a world-class global medical function that will drive our international growth and partnership strategy," said Peter Aceto, Chief Executive Officer, CannTrust. "As we continue to grow, Dr. Walt's leadership and experience will be pivotal to ensure we continue our commitment to industry-leading research and product development."
Dr. Walt comes to CannTrust with extensive senior leadership experience in the pharmaceutical and biotechnology industries in Canada, USA and abroad. Most recently Dr. Walt held the position of Vice President and Head of Medical Affairs at Sobi Inc., where he led their North American medical and scientific operations. Previously, Dr. Walt held the position of Medical Director at Biogen Canada where he built best-in-class medical teams and developed strong relationships with key clinical investigators in Canada.
"What inspired me to take on this role is a strong belief in the significant clinical benefits cannabis can offer patients suffering from serious conditions," said Dr. Len Walt, Chief Medical Officer, CannTrust. "My goal is to develop a world-class team that will conduct industry leading scientific research to further our understanding of cannabis and its therapeutic potential."
Another stTSX: TRST; NYSE:CTST), today announced it has finalized a Letter of Intent ("LOI") with Société québécoise du cannabis ("SQDC") to provide Quebec with high quality cannabis for the recreational market.
"This LOI signifies the first step towards a long and impactful relationship with the SQDC and consumers in Quebec. This is an important milestone as we have secured national distribution across all ten provinces for our adult-use products," said Peter Aceto, Chief Executive Officer, CannTrust. "This will allow us to develop our brand presence in Quebec at a time when consumers are beginning to develop their preferences."
The LOI will serve as an introduction of CannTrust's recreational brands to the Quebec market beginning with two of the Company's most established strains that will be available through SQDC later this year.
"Like our partners at SQDC, CannTrust encourages safe and responsible consumption of cannabis by both medical patients and legal age recreational consumers," said Mr. Aceto. "To this end we support laws that make the underage sales and purchase of cannabis illegal."
About CannTrust
CannTrust is a federally regulated licensed producer of medical and recreational cannabis in Canada, and the 2018 Canadian Cannabis Awards "Top Licensed Producer of the Year". Founded by pharmacists, CannTrust brings more than 40 years of pharmaceutical and healthcare experience to the medical cannabis industry and serves more than 70,000 medical patients with its dried, extract and capsule products. The Company operates its approximately 450,000 sq. ft. Niagara Perpetual Harvest Facility in Pelham, Ontario, has been permitted to construct another 390,000 sq. ft. facility in Pelham, and prepares and packages its product portfolio at its approximately 60,000 sq. ft. manufacturing centre of excellence in Vaughan, Ontario. The Company has also purchased 81 acres of land in British Columbia and expects to secure over 200 acres of land in total for low-cost outdoor cultivation which it will use for its extraction-based products.ep forward "
Major news today re Quarter filing.Revenue over double.
"The Globe and Mail reports in its Tuesday edition that Canntrust Holdings says its net revenue for its first full quarter after legalization of recreational cannabis will be $17-million, more than double what it was a year earlier. A Canadian Press dispatch to The Globe reports that the cannabis producer says it has not finalized its results for the quarter ended March 31 but preliminary estimates show net revenue will be up 116 per cent from $7.8-million in last year's first quarter. The revenue during the three-month period is also expected to be 5 per cent higher than in the fourth quarter of 2018, when recreational use of cannabis by adults became legal in Canada. Canntrust says it harvested 9,424 kilograms of cannabis from its Niagara operations, up 96 per cent from the fourth quarter, and that pricing for dry cannabis and oils was stable. Its adjusted loss before taxes and other expenses was estimated at between $3.5-million and $4.5-million, which is less than its fourth quarter net loss of $8.5-million. The company had said in March that it expected adjusted earnings before interest, taxes, depreciation and amortization in the first quarter would be consistent with the fourth quarter of 2018."
CannTrust Launches Three New Medical Cannabis Extract Formulations
Read here
CannTrust Receives Green Light From Health Canada for Phase 2 Expansion
Read here
Not much activity on this board. Could be a major player being ignored
Today's news is significant
"TSX:TRST, NYSE:CTST) is pleased to announce that its cultivation and processing permit under Health Canada Cannabis Regulations was amended to include the final 20% of its Phase 2 expansion. The entire 450,000 sq. ft. of its perpetual harvest greenhouse in Pelham, Ontario, is now fully licensed.
"We have always been confident that our processes meet and exceed regulatory standards, and we now have further validation of this from our regulators," said Peter Aceto, Chief Executive Officer. "With this approval, CannTrust is set to meet its plan to reach 50,000kg of annualized capacity at the perpetual harvest greenhouse and continue providing award-winning products in a cost-effective manner."
CannTrust's expected production ramp is as follows:
The last 20% of the Phase 2 expansion is expected to be operating at full capacity by the end of Q2 2019.
Pending Health Canada approval, the Company anticipates planting on its previously announced outdoor land acquisition of 81 acres in Q2 2019 and expects to realize a yield of approximately 1,000kg per acre in 2019. Total 2019 production from this harvest is expected to be approximately 75,000kg.
With additional land under letter of intent anticipated to be secured in the near term, the Company's outdoor cultivation operation is expected to total 100,000kg to 200,000kg of production in the second half of 2020. Production from outdoor cultivation will primarily be used for extraction purposes for products that we anticipate will be permitted based on proposed regulations for additional cannabis products, which include edibles and inhaled extract products.
The Company's Phase 3 expansion of its perpetual harvest greenhouse is expected to add a further 50,000kg of capacity beginning in the second half of 2020. Phase 3 includes productivity and automation enhancements over Phases 1 and 2. Production from the Phase 3 expansion is also subject to Health Canada approval.
CannTrust's combined cultivation operations are expected to reach a total annualized capacity of 200,000kg to 300,000kg in the second half of 2020."
Very large position here... boards are not necessary when it comes to strong mid caps imo.. love the numbers here and way up but holding for the next few years.
TRST
CannTrust to Proceed with Phase III Expansion Project
Read the full press release here...
Good video, interview with COO Brad Rogers: https://canntrust.ca/canntrust-holdings-president-were-excited-about-launching-our-recreational-brands/
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