Both the chairman and chief executive were aware of the situation
Both the chairman and chief executive of CannTrust Holdings Inc. were aware that the Canadian company was growing cannabis in unlicensed rooms for months before regulators discovered it, the Toronto-based Globe and Mail reported Tuesday. Emails seen by the Globe and Mail reportedly show Chairman Eric Paul and CEO Peter Aceto, as well as other top executives, knew about the illegal grows.
Graham Lee, the company’s compliance officer, reportedly said in an email that the company had “dodged some bullets” after a Canadian government inspection failed to find the hidden plants in November 2018, and Paul reportedly instructed staff on how to proceed. Health Canada eventually discovered the company was growing cannabis in five unlicensed grow rooms at its Pelham, Ontario, facility from October to March, during which time it had applications pending, and regulators seized the plants earlier this month. U.S.-listed shares of CannTrust were down 5% premarket and have tumbled about 50% over the past month, while the S&P 500 has gained 2%.
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