Canntrust axes CEO as scandal intensifies at pot grower
Canntrust Holdings Inc. has fired its chief executive officer, Peter Aceto, and its current chairman has resigned after a tumultuous three weeks for the licensed producer sparked by a Health Canada investigation into unlicensed growing at it’s Pelham, Ont., facility.
“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,” said a company statement issued Thursday evening.
“In addition, the Board of Directors demanded the resignation of the company’s chair Eric Paul and he complied,” the statement added.
Former American sports executive Robert Marcovitch, who led the company’s independent special committee investigation into the unlicensed growing, will assume the role of interim CEO. Marcovitch has been an independent director on Canntrust’s board since 2017. “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,” Marcovitch said in the statement.
The Vaughan, Ont.-based company said it would make additional operational changes in the “days and weeks ahead.”
Both Aceto and chairman Eric Paul found themselves under increased scrutiny following a series of media reports this week that indicated they had prior knowledge of the unlicensed growing.
On Wednesday, the Financial Post reported allegations from a former employee, who said Aceto had filmed a promo video in front of an unlicensed grow room.
Earlier this week, The Globe and Mail obtained a November 2018 internal company e-mail which, according to the paper, showed that Aceto and Paul had been informed at the time of unlicensed growing in some rooms at the Pelham facility.
Aceto, the former CEO of Tangerine Bank, was brought in by Canntrust in early October 2018 to replace Paul.