TSX reviewing CannTrust listing due to failure to file financial statements

TSX reviewing CannTrust listing due to failure to file financial statements

VAUGHAN, Ont. — Troubled cannabis company CannTrust Holdings Inc. says the Toronto Stock Exchange is reviewing the company’s eligibility for continued listing on the exchange.

The company, which has been under fire since it disclosed in July that Health Canada had discovered illicit cultivation in unlicensed rooms at its Pelham, Ont., greenhouse, says the TSX is reviewing the listing because of its failure to file its recent financial statements.

CannTrust says it has not filed its restated audited financial statements for 2018, its restated interim financial statements for the first quarter of 2019 and its interim financial statements for the second and third quarters of 2019 along with the corresponding management discussion and analysis.

The TSX has told the company if it is unable to make the disclosures by March 25, 2020, the company’s securities will be delisted 30 days following that point.

CannTrust says it is working with its independent auditor and expects to file the financial statements and related disclosure before the deadline.

Health Canada suspended CannTrust’s licenses to produce and sell cannabis in September. The company has submitted a detailed remediation plan to Health Canada and expects to complete the work described in the plan by the end of the first quarter of 2020.

In the wake of its disclosure of illicit cultivation, the company fired its CEO “with cause” and asked its chairman to resign after the board discovered new information during an internal investigation.

The company’s shares surged briefly on Oct. 15 when it announced plans to destroy $77 million worth of cannabis plants and inventory as part of its efforts to comply with Health Canada regulations.

CannTrust announced Oct. 25 that it was laying off as many as 140 people — roughly one quarter of its workforce — while it works to regain its federal licences to sell and produce pot.

It said the cuts were expected to result in monthly cash savings of about $400,000 and cost up to $800,000 in severance payments if the employees are not recalled within 35 weeks.

The legal cannabis sector has struggled since Canada legalized the product in October of 2018, suffering from supply shortages and a lack of retail outlets, particularly in Ontario.

CannTrust shares were down five cents, or 4.46 per cent, at $1.07 in midday trading on The Toronto Stock Exchange.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A nurse gets a swab ready at a temporary COVID-19 test clinic in Montreal, on Friday, May 15, 2020. Health Canada has reversed course on home test kits for COVID-19, saying it will now review applications for such devices. THE CANADIAN PRESS/Paul Chiasson
Alberta declines Ontario’s request to send health-care workers

Alberta is “not in a position” to send health-care workers out of… Continue reading

The Red Deer Rebels allowed four straight goals from the Medicine Hat Tigers Friday night on the road. (Photo by Rob Wallator/ Red Deer Rebels)
Tigers hand Red Deer Rebels 10th straight loss

Tigers 4 Rebels 2 Through 17 games in the shortened WHL season,… Continue reading

Meghan Huizing has been selected by Red Deer Catholic Regional Schools as a finalist for the Alberta School Boards Association (ASBA) 2021 Edwin Parr Award. (Photo courtesy of Red Deer Regional Catholic Schools)
Red Deer Catholic names finalist for Edwin Parr Award

Meghan Huizing from St. Gregory the Great Catholic School in Blackfalds has… Continue reading

GrammaLink-Africa members are participating in the Stride to Turn the Tide campaign until June 30. (Contributed photo)
Red Deer group walking to raise money for African grandmothers

A group of central Albertans will be walking every day until the… Continue reading

Red Deer Public Schools will not pilot the new draft curriculum at its elementary schools. (File photo contributed by Red Deer Public Schools)
UPDATED: Red Deer Public Schools says no to piloting new curriculum

Alberta Teachers’ Association support school boards

Montreal Canadiens' Tyler Toffoli celebrates his goal past Calgary Flames goaltender Jacob Markstrom during second-period NHL hockey action in Montreal on Friday, April 16, 2021. THE CANADIAN PRESS/Paul Chiasson
Toffoli scores twice, Canadiens put some distance on Flames with 2-1 win

Toffoli scores twice, Canadiens put some distance on Flames with 2-1 win

Canadian prop Jake Ilnicki savouring life in Seattle, looks forward to facing Arrows

Canadian prop Jake Ilnicki savouring life in Seattle, looks forward to facing Arrows

Corey Conners, of Canada, hits out of a bunker on the seventh hole during the final round of the Masters golf tournament in Augusta, Ga., Sunday, April 11, 2021. Conners notched six birdies on his back nine to take the lead after his second round of the RBC Heritage on Friday. THE CANADIAN PRESS/AP-Matt Slocum
Canadian Corey Conners surges into lead at PGA Tour’s RBC Heritage

Canadian Corey Conners surges into lead at PGA Tour’s RBC Heritage

Patrick Marleau poised to break Gordie Howe’s games record

Patrick Marleau poised to break Gordie Howe’s games record

Leylah Annie Fernandez of Canada serves to Marie Bouzkova of the Czech Republic in round 1 of the Rogers Cup women's tennis tournament in Toronto, Monday August 5, 2019. THE CANADIAN PRESS/Mark Blinch
Rebecca Marino propels Canada into 2-0 lead over Serbia at Billie Jean King Cup

Rebecca Marino propels Canada into 2-0 lead over Serbia at Billie Jean King Cup

Dalton Kellett pulls out of the pits during a practice session for the Indianapolis 500 auto race at Indianapolis Motor Speedway, in Indianapolis, Thursday, Aug. 13, 2020. Dalton Kellett is pleased his second career season in IndyCar will be different than his first, which started on an elaborate iRacing rig in his home office in Indianapolis because of COVID-19 restrictions. THE CANADIAN PRESS/AP-Darron Cummings
Canada’s Dalton Kellett set for a more stable season as an IndyCar driver

Canada’s Dalton Kellett set for a more stable season as an IndyCar driver

Canada head coach Bev Priestman reacts during the women's international friendly soccer match between England and Canada at Bet365 stadium in Stoke on Trent, England, Tuesday, April 13, 2021. THE CANADIAN PRESS/AP/Rui Vieira
Canadian women get peek at their possible road at Olympic soccer tournament

Canadian women get peek at their possible road at Olympic soccer tournament

Head coach John Tait talks to his team as Canada takes on Japan in women's sevens rugby action at the 2016 Olympic Games in Rio de Janeiro, Brazil on Saturday, Aug. 6, 2016. THE CANADIAN PRESS/Sean Kilpatrick
Rugby Canada says probe into complaint from members of women’s 7s team is complete

Rugby Canada says probe into complaint from members of women’s 7s team is complete

Most Read