Article by Victor Ferreira, Financial Post
The Toronto Stock Exchange is reviewing the eligibility of CannTrust Holdings Inc.’s listing on the exchange because the embattled cannabis producer has failed to disclose three quarters worth of financial statements.
In a press release, the Vaughn, Ont.-based company said it was in “arrears for satisfying certain disclosure requirements.” CannTrust has not filed its restated audited financial statements for 2018, its restated interim financial statements for the first quarter of 2019 and interim financial statements for its two latest quarters. The company said it has also yet to provide its management’s discussion and analysis for the same periods.
The TSX has given CannTrust four months to submit these documents, the company said.
“The TSX has advised that, if the Company is unable to cure those defaults by March 25, 2020, the Company’s securities will be delisted 30 days following such date,” CannTrust’s statement said.
Earlier this year, CannTrust was one of Canada’s most valuable cannabis licensed producers. But since reaching an all-time high of $13.48 in March, its stock has lost more than 91 per cent of its value. Investors widely abandoned the stock after Health Canada announced in July that it had found that CannTrust was growing cannabis in unlicensed rooms.
Soon after, the company fired CEO Peter Aceto and forced the resignation of chairman Eric Paul and became the target of dozens of class-action lawsuits by shareholders who felt robbed of their investments.