Pot company CannTrust terminates CEO Peter Aceto ‘with cause’ amid scandal over unlicensed growing

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‘Our first priority is to complete the remaining items of our investigation and bring the company’s operations into full regulatory compliance’

CannTrust Holdings Inc. has fired its chief executive officer, Peter Aceto, and its current chairman has resigned after a tumultuous three weeks for the licensed producer sparked by a Health Canada investigation into unlicensed growing at it’s Pelham, Ont., facility.

Former American sports executive Robert Marcovitch, who led the company’s independent special committee investigation into the unlicensed growing, will assume the role of interim CEO. Marcovitch has been an independent director on CannTrust’s board since 2017. Both Aceto and chairman Eric Paul found themselves under increased scrutiny following a series of media reports this week that indicated they had prior knowledge of the unlicensed growing.

Aceto, the former CEO of Tangerine Bank, was brought in by CannTrust in early October 2018 to replace Paul, who hailed the banker for his “successful track record of strong leadership, deep operational knowledge and focus on delivering shareholder value,” in a statement put out by the company at the time. But his short tenure in the cannabis space was tested in early July, when Health Canada issued a non-compliance order to the Vaughan, Ont.

 

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