Under the Symbol:
Berman Tabacco Investigates CannTrust Holdings Inc. and Termination of CEO Peter Aceto
Friday, July 26, 2019 5:40 PM
SAN FRANCISCO, CA / ACCESSWIRE / July 26, 2019 / Berman Tabacco (www.bermantabacco.com), a national law firm representing investors, is investigating possible securities law violations in connection with shares of CannTrust Holdings Inc. (“CannTrust” or the “Company”) (NYSE: CTST) purchased in a May 2019 public offering and on the open market.
On May 6, 2019, the Company announced the closing of an underwritten public offering of 36,363,636 common shares at a price to the public of $5.50 per share. The Company sold 30,909,091 common shares in the offering for total gross proceeds to the Company of approximately $170 million.
On June 19, 2019, the Company issued a press release announcing, "that it [was] establishing operations in the United States … starting in the State of California."
On July 8, 2019, CannTrust disclosed that it “received a compliance report from Health Canada notifying the Company that its greenhouse facility in Pelham, Ontario was non-compliant with certain regulations.” The Company also stated that “Health Canada has placed a hold on inventory which includes approximately 5,200kg of dried cannabis that was harvested in the previously unlicensed rooms in Pelham, until it deems that the Company is compliant with regulations.” In addition, CannTrust “instituted a voluntary hold of approximately 7,500kg of dried cannabis equivalent at its Vaughan manufacturing facility that was produced in the previously unlicensed rooms.” On July 8, 2019, the Company’s share price fell $1.11 (approximately 22%) to close at $3.83 per share.
On July 10, 2019, a lawsuit was filed by another law firm in United States District Court for the Southern District of New York, captioned Huang v. CannTrust Holdings Inc., et al., No. 1:19-cv-06396, against CannTrust and certain senior officers. The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of persons and entities that purchased or otherwise acquired CannTrust securities between November 14, 2018 and July 5, 2019, inclusive.
On July 11, 2019, the Company announced that it had “implemented a voluntary hold on sale and shipment of all cannabis products as a precaution while Health Canada visits and reviews its Vaughan, Ontario manufacturing facility.” The Company also announced the formation of a Special Committee of the Board of Directors “to investigate this matter in its entirety.”
On July 25, 2019, the Company issued a press release announcing that an investigation being undertaken by a special committee of its Board of Directors had "uncovered new information that … resulted in a determination by the Board to terminate with cause CannTrust CEO Peter Aceto."
Pursuant to the Private Securities Litigation Reform Act of 1995, investors wishing to serve as the lead plaintiff are required to file a motion for appointment with the Court no later than September 9, 2019. If you are a member of the class, you may, no later than September 9, 2019, request that the court appoint you as lead plaintiff for the class.
If you would like more information regarding this investigation, or if you wish to share information about the investigation, you may can find more information here: https://www.bermantabacco.com/case/canntrust-holdings-inc/.
Berman Tabacco is a national law firm representing institutions and individuals in lawsuits, seeking to recoup losses caused by violations of securities and antitrust laws. The firm has 37 lawyers in Boston and San Francisco.
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SOURCE: Berman Tabacco