CannTrust Fires CEO, President Resigns
Amid revelations that CannTrust Holdings was illegally growing marijuana in unlicensed locations, the company terminated Chief Executive Peter Aceto and forced President Eric Paul to resign, the company announced late Thursday.
CannTrust stock lost more than 60% of its value in the past month amid a widening scandal stemming from the cannabis producer’s illegal growing activities at its Ontario, Canada, facilities.
Illegal grow rooms, hidden behind false walls, were featured in a promotional video that was available on YouTube until Thursday. At least 5 metric tons of marijuana were grown in the grow rooms, some of which was exported to Denmark for medical use.
Media reports indicated that CannTrust senior management was aware of the illegal grow operation and ordered employees to proceed with the unlawful activities.
The company said it has appointed the chair of the special committee investigating the illegal grows, Robert Marcovitch, as interim CEO.