VAUGHAN, Ont. — CannTrust Holdings Inc. shares are spiking as much as 20 per cent as investors take in news that the cannabis company’s chief executive officer has been fired amid an ongoing investigation into allegations it was illegally growing marijuana in unauthorized rooms.
Stock in the beleaguered company, based in Vaughan, Ont. rose as high as $3.14 per share in morning trading on the Toronto Stock Market.
The company’s board of directors said Thursday night that it has decided to “terminate with cause” chief executive Peter Aceto and demanded company chair Eric Paul resign, which he did.
The shakeup comes as the board’s special committee uncovered new information during its ongoing investigation into the company’s failure to comply with Health Canada regulations.
The move came after several media reports cited internal documents that suggest Paul and Aceto were aware of pot cultivation in rooms at a Pelham, Ont., facility without government approval months before Health Canada discovered the illicit activity.
CannTrust’s stock has fallen more than 40 per cent since early July, when it disclosed Health Canada’s findings.