CannTrust fires CEO, president resigns as pot company deals with illegal-grow scandal

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Top top execs are out amid a major Canadian cannabis-company scandal. Here's what it's all about.

Amid revelations that CannTrust Holdings Inc. was illegally growing pot in unlicensed rooms, the company fired Chief Executive Peter Aceto and forced President Eric Paul to resign, the company announced late Thursday.

CannTrust voluntarily held back an additional 7.5 metric tons of weed and halted all medical and recreational cannabis sales in the wake of a Health Canada crackdown. Business as usual The company’s issues with Health Canada date back to at least November 2017, when the government agency warned CannTrust that it had changed its production process for oils without first receiving approval and cited a number of issues after its annual inspection.

The next week, Lee allegedly said in a production meeting that Aceto had instructed him to plant crops in one of the unlicensed rooms that was approximately 50,000 square feet. Minutes from another meeting seven days later indicated planting would continue even though the room remained unlicensed.

 

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