CannTrust has announced they expect to be late filing their earnings, in a Tuesday evening release, they said the following:
- Canntrust will likely miss its filing deadline of August 14, 2019 to file an interim financial report for CYQ2.
- The Ontario Securities Commission (OSC) has notified CannTrust that an investigation has been assigned to the Joint Serious Offences Team of the Enforcement Branch of the OSC.
- Management is of the view that there is significant uncertainty with respect to the potential impact of pending Health Canada decisions on the valuation of the Company’s inventory and biological assets and revenue recognition.
- Health Canada decisions may also require restatement of certain of the Company’s historical financial statements and related management’s discussion and analysis for the periods ended Q4/18 and Q1/19.
- Management has applied for a Cease Trade Order (“MCTO”) pending the filing of the Q2 Filings and any Restated Financials if required.
The reactions on Twitter are understandably negative:
Now a securities fraud investigation to go with the Health Canada investigation and shareholder lawsuits. They better hunker down Roman Phalanx style!
— Scott Willis (@ScottW_Grizzle) August 1, 2019
CannTrust says that it's going to file its financial statements late. No surprise there. Also says that its imposed a trading blackout on executives, directors and other insiders at the company. $trst $ctst
— A Cash Generating Unit of Dow Jones (@chernandburn) August 1, 2019
Information for this briefing was found via Sedar and Twitter. The author has no securities and has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.