Cannabis producer CannTrust Holdings Inc. said on Friday its auditor KPMG LLP has withdrawn its report on the company’s financial statements for full-year 2018 and its interim report for the three month period ended March 31.
KPMG’s decision was prompted after CannTrust cautioned against relying on its financial statements and as new information from an investigation by a special committee was shared with the auditor.Last month, Health Canada had found unlicensed pot cultivation by the company, and had placed a hold on about 5,200 kg of dried cannabis harvested in the five unlicensed rooms, while CannTrust put a voluntary hold on 7,500 kg of inventory produced in the rooms.
CannTrust said there was significant uncertainty with respect to the potential impact of pending Health Canada decisions on the valuation of its inventory and biological assets. The company had earlier said the inventory and biological assets affected by Health Canada’s action was about C$51 million as of June 30.
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