CannTrust’s auditor no longer endorses 2018 monetary statement amid controversy – Cannabis News | Way of life Strategies | Professional Opinions


VAUGHAN, Ont. — CannTrust Holdings Inc. says its independent outdoors auditor has withdrawn its endorsement of the 2018 monetary statements, the most recent fallout from current revelations about illicit grow rooms at the Ontario-primarily based cannabis firm.

The Ontario Securities Commission and RCMP confirmed final week they are investigating challenges about unlicensed developing at CannTrust‘s greenhouse.

That follows a Well being Canada probe that located the firm had grown cannabis in many rooms at its Pelham, Ont. facility without having government approval, and that workers had supplied inaccurate data to regulators.

CannTrust now says auditing firm KPMG LLP has withdrawn its March 27 report on 2018 monetary outcomes and declared that the audited outcomes cannot be relied upon as correct.

Nonetheless, CannTrust says it will co-operate with KPMG, which remains its outdoors auditor, as nicely as authorities investigating the matter.

CannTrust’s shares have fallen extra than 50 per cent on the Toronto Stock Exchange considering that the scandal broke and the scandal has led to the ousting of the company’s CEO and the chairman of its board of directors.

The company has warned that it would probably miss its filing deadline for an interim monetary report for the reason that of the important uncertainty on the effect of the pending Well being Canada choices.

“We will continue co-operating with our auditor and regulators, and take what ever measures are required to restore complete trust in the company’s regulatory compliance. Our health-related sufferers, clients, shareholders and workers deserve absolutely nothing less”, Robert Marcovitch, the company’s chief executive officer stated in a statement Friday.

Well being Canada’s probe could outcome in the suspension or termination of CannTrust’s cannabis licences and fines up to $1 million.

Illegal cultivation is also a criminal activity beneath the Cannabis Act, for which men and women could face up to 14 years in jail.

The Vaughan, Ont.-primarily based firm, which has halted all sales and shipments as Well being Canada continues its probe, stated it had hired a monetary adviser to assist it discover a prospective sale and other strategic options.

CannTrust has disclosed that the production in 5 unlicensed rooms took location involving October 2018 and March 2019, ahead of it received licences for these rooms in April 2019.

Corporations in this story: (TSX:TRST)

The Canadian Press


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