CannTrust Holdings Inc. hired Greenhill & Co. to explore a sale after a regulatory breach led the Canadian pot company to fire its chief executive officer and erased about C$500 million ($380 million) in market value.
Greenhill will advise a special committee of CannTrust’s board, which will review potential alternatives including a sale, a strategic investment or a business combination, CannTrust said in a statement Wednesday. The special committee was appointed to investigate after regulators from Health Canada found the company grew cannabis in unlicensed parts of its greenhouse in Pelham, Ontario.
CannTrust fired CEO Peter Aceto and asked chairman Eric Paul to step down last week after a report that executives were aware of the unlicensed growing several months before Canadian regulators unearthed the breach. The stock has plunged by more than half since the revelations, cutting the market value to about C$407 million.
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Author: Sean Hocking
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