The Board of CannTrust Holdings has terminated “with cause” the contract of the company’s CEO, Peter Aceto (pictured).
The news follows the announcement of an investigation into CannTrust’s non-compliance with Health Canada regulations.
Earlier this month, Canada-based CannTrust admitted that the culprit in its non-compliance was “the growing of cannabis in five unlicensed rooms and inaccurate information provided to the regulator by CannTrust employees”.
In addition to the sacking of Aceto, CannTrust’s Board of Directors has demanded the resignation of the Company’s Chair Eric Paul. He has complied, and is now out at the company.
In a statement, the company said it was now “preparing to make additional operational changes in the days and weeks ahead, which will be announced in due course”.
It added: “At this time, the impact of these matters on CannTrust’s financial results is unknown. Further updates will be provided as they become available.”
Effective immediately, the CannTrust board has appointed Special Committee Chair Robert Marcovitch to the role of interim CEO and he will step down as a member of the Special Committee.
Marcovitch was most recently the President and CEO of K2 Sports, an international developer, manufacturer, marketer and distributor of winter sports equipment.
He was previously the Chief Executive Officer at The Coleman Outdoor Company from 2011 until 2015, and prior to that, was Chief Executive Officer and President of Ride, Inc. from 1994 to 1999, which prior to its acquisition by K2 was a large publicly traded company.Cannabis Business Worldwide