CannTrust’s TSX listing goes under microscope
TORONTO 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 financial statements dating back to 2018.
In a news release, the Vaughan, Ont.-based company said it was in “arrears for satisfying certain disclosure requirements.”
CannTrust has not filed its restated audited financial statements for 2018 and its restated interim financial statements for the first quarter of 2019. It also has to submit interim statements for the past two quarters — which it never did — along with its management’s discussion and analysis.
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.
When asked to explain the delay, a CannTrust spokesperson pointed to an August news release that said Health Canada’s decision to suspend the company’s licences “required a review and possible restatement” of the past documents.
Health Canada’s decision to suspend CannTrust’s licences came after it found the company was growing cannabis in unlicensed rooms.
That revelation had a domino effect on the company — its leadership was shuffled, it became the target of class-action lawsuits, it laid off hundreds of employees to cut costs, saw its licences to sell and process cannabis suspended and was forced to destroy $77 million worth of product. CannTrust said it anticipates meeting the TSX deadline and is working with an independent auditor to do so.