Connect with us

Cannabis News

Auditor Withdraws CannTrust Financial Reports: Growing Activities And Sales To Resume?

Jane S

Published

on

Auditor-Withdraws-CannaTrust-Financial-Reports

CannaTrust, a Canadian marijuana company, has withdrawn a report on its financial statements for the year of 2018 and for the quarter ending in March, based on an independent auditor’s decision. The company has recently faced issues concerning unlicensed marijuana cultivation.

KPMG is the independent auditor, who cautioned against the company’s reliance on such financial statements. A press release noted,

“KPMG was not aware of the information recently shared by the Company when it issued the KPMG Reports and had relied upon representations made by individuals who are no longer with the company.”

Robert Marcovitch, CannaTrust’s CEO, indicated,

“We will continue cooperating with our auditor and regulators, and take whatever steps are necessary to restore full trust in the Company’s regulatory compliance. Our medical patients, customers, shareholders and employees deserve nothing less.”

According to a report by MarketWatch, the auditor news has impacted the company’s stocks. The report shows that the stock decreased by 27%, and overall it has decreased 61% in the past three months, and at close was trading at just above the $3.00 mark, as of today.   Furthermore, the ETFMG Alternative Harvest EFT decreased by 16%. With this comes the realization that even after consulting with their financial advisors, Greenhill & Co., they may need to consider selling off their assets.

 

On August 12, it was reported in a press release that the company’s facility in Vaughan, Canada may be non-compliant with regulations. The non-compliance findings include, but are not limited to, insufficient security controls at the facility, inadequate assurance investigations and controls, and construction of two new areas without private approvals by Health Canada, one of which stored cannabis since November 2018.

Marcovich stated in a press release,

“We are continuing to work hard to regain the trust of Health Canada, our patients, shareholders and partners. We have retained independent consultants who have already started addressing some of the deficiencies noted in Health Canada’s report. We are looking at the root causes of these issues and will take whatever remedial steps are necessary to bring the Company into full regulatory compliance as quickly as possible.”

Jane is a regular contributor who learned about the great benefits of CBD a few years ago after starting it herself. Impressed by its effects, she's interested in helping others learn about options that can be helpful for them.

Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

Join Us On Facebook

Advertisement

Trending CBD News

TimesofCBD always fact checks sources and aims for the best accuracy in the reporting curated cannabis content consisting of the latest CBD news, user guides and product health research. Quality is the priority, but we are not eligible to be liable as everything here is for educational, informational purposes only. Always seek real additional medical advice and consultation with a professional healthcare practitioner before considering any CBD. No statements found on this website have underwent Food and Drug Administration evaluation. The efficacy of any products or claims made have never been approved by the FDA either. No products shall ever be intended to diagnose, treat or cure any disease or prevent any ailment.

What Is CBD?

Advertisement