As the CannTrust Holdings (NYSE:CTST,TSX:TRST) scandal continues, new revelations about the activity of company executives have come to light.
A new report indicates that CannTrust executives secured millions in gains from insider selling last November after the circulation of an internal email about the company’s improper growing.
The Canadian company has weathered turmoil since Health Canada discovered earlier this month that it had been growing cannabis in unlicensed rooms at its facility in Pelham, Ontario.
Since the original announcement by the firm on July 8, shares of CannTrust have seen a nosedive in value of over 50 percent both in New York and Toronto.
The company is now awaiting a decision from Health Canada, the regulatory body tasked with overseeing the marijuana industry, on the status of its licensed operations.
The latest news shows that according to selling and buying activity records, two executives at the firm, former board chair Eric Paul, who also previously served as CEO of the company, and Mark Litwin, a director, sold about C$1 million worth of shares on November 16 of last year.
Paul was asked to resign on July 25, at the same time Peter Aceto, former CEO of the company, was fired.
The Globe and Mail report also points to the selling of C$5 million worth of CannTrust shares by Cannamed Financial, a holding company, after the email went out.
On Monday (July 29), Bloomberg reported that Aceto has been stripped of approximately C$8.2 million worth of stock options in the company.
The report indicates that his options will most likely be canceled; however, in the case that they are not, the performance of the stock isn’t helping Aceto’s cause. The news outlet states:
According to the options awarded to Aceto when he joined the company in October, a third were to be vested annually in one-third increments, with two-thirds to be vested based on achieving share price milestones of $15 to $25 over three years.
As mentioned, the market is now preparing for a ruling from Health Canada on the status of CannTrust’s operations. The company has filed a review package with the federal agency.
As of 3:41 p.m. EDT on Tuesday (July 30), shares of the company were trading down 0.92 and 0.35 percent at US$2.15 and C$2.85 in New York and Toronto, respectively.
Don’t forget to follow us @INN_Cannabis for real-time news updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
As investors continue to prioritize cannabis opportunities in the US, market watchers expect mergers and acquisitions (M&A) to play a role in the future for Canadian companies.
A consolidation trend has been expected in the Canadian cannabis space for some time now based on the size of the market compared to the number of operations in the country.
BioHarvest Sciences Inc. Unveils the Unique Polyphenolic Content of Its Upcoming Olive-Based Nutraceutical
The product will include polyphenols known to have significant health benefits.
BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.
Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.
The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).
Canopy Growth to Participate in BofA Securities Virtual Consumer & Retail Technology Conference on March 11, 2021
Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) (“Canopy Growth” or “the Corporation”) announced today that EVP & CFO Mike Lee will be participating in a fireside chat at the BofA Securities Virtual Consumer & Retail Technology Conference on Thursday, March 11, 2021 at 9:30am ET .
Hill Street Beverage Company Inc. (TSXV: BEER) (“Hill Street” or the “Company”). The Company announces that further to its press release dated March 2, 2021, it has obtained TSX Venture Exchange approval to extend the closing date of its previously announced private placement of units (“Units”) until April 7, 2021. Each Unit is comprised of one (1) common share and one (1) warrant, exercisable for one common share at price of $0.11 per share, for a period of three (3) years from the date of Closing. The Company applied to extend the date of closing to allow a greater number of interested investors to participate.
For more information regarding the Company or the offering, please contact firstname.lastname@example.org, or