Shares of CannTrust Holdings Inc CTST traded higher Friday morning after the cannabis producer confirmed senior leadership changes.
What Happened
CannTrust agreed with Health Canada's findings it produced cannabis in multiple unlicensed rooms in early July. A special committee was created on July 22 to investigate the non-compliance and the company said in a press release Friday new information was uncovered that resulted the immediate termination of CEO Peter Aceto with cause.
The press release did not detail what new information was uncovered and CannTrust made a new voluntary disclosure to Health Canada.
The board also demand the resignation of CannTrust chair Eric Paul, a request he complied with.
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Effective immediately, Special Committee Chair Robert Marcovitch will assume the title as interim CEO and he will remove himself from the committee. Most recently, Marcovitch was the President and CEO of K2 Sports, a maker of winter sports equipment.
Why It's Important
CannTrust's immediate priority is to complete its investigation so it can regain full regulatory compliance, Marcovitch said in the press release. The company boasts multiple strengths it can leverage to "reset and rebuild" its industry-leading research, innovation and intellectual property.
CannTrust said it will announce in the coming days and weeks additional operational changes. For the time being, the financial impact to CannTrust's financial results is not known and further updates will be provided once available.
CannTrust's stock traded higher by 11.2% to $2.17 per share in Friday's pre-market session. The sock had dropped more than 20% earlier his week.
Related Links:
CannTrust's Management May Have Known About Illegal Operations All Along
'420 Investor' Brochstein To CannTrust CEO: Apologize And Resign
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