The chief executive of CannTrust Holdings Inc. appeared in a promotional video filmed directly outside an unlicensed cannabis grow room at the company’s Pelham, Ont., facility in early 2019, according to a former employee who was present when the video was shot.
When this story broke, it was shocking to hear that, literally, thousands of kilograms of marijuana was grown in unlicensed space at CannTrust. This wasn't the doing of some ambitious, rogue employee. The top executives knew exactly what was going on.
The room was also referenced in a Globe and Mail report on Tuesday that quoted a November 2018 email by CannTrust’s director of quality and compliance, Graham Lee, telling several top company executives including Aceto that they had “dodged some bullets” with regards to a Health Canada inspection.
“[Health Canada] did not ask about RG8E/W, which are unlicensed rooms currently full of plants,” Lee’s email said, according to the report.
Peter Aceto, the CEO, started his job at the company in October last year. The communication above happened in the very next month. Aceto used to work for Tangerine -- an online bank in Canada. Health Canada just might go after this former Bankster.
The shareholders must be livid. The stock price over the past few months.
27 March: $13.45
5 July: $6.46
That's an 81% crash in four months.
That was quick. Peter Aceto is terminated:
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.
In addition, the Board of Directors demanded the resignation of the Company's Chair Eric Paul and he complied.