CannTrust Announces Change in Auditor
CannTrust Holdings announced on April 30, 2021, that KPMG LLP will not complete the audits of its restated financial statements for 2018 and 2019, nor will KPMG stand for reappointment as the auditor for 2020. KPMG has not audited any financial statements since March 31, 2019. CannTrust is currently in advanced discussions for a successor auditor and remains under CCAA protection while addressing civil litigation claims and exploring strategic alternatives. The company continues to focus on reinstating its cannabis licenses and restoring operations in the Canadian market.
- CannTrust is in advanced discussions to secure a new auditor.
- The company is working on reinstating its cannabis licenses and restoring operations.
- KPMG will not complete audits for restated financial statements, raising concerns about transparency.
- CannTrust remains under CCAA protection, indicating ongoing financial struggles.
- The company has not filed necessary periodic disclosures, maintaining a cease-trade order since April 2020.
VAUGHAN, ON, April 30, 2021 /PRNewswire/ - CannTrust Holdings Inc. ("CannTrust" or the "Company") (unlisted) announced today that CannTrust and KPMG LLP ("KPMG") have agreed that KPMG will not be completing the audits for the Company's restated financial statements for the years ended December 31, 2018 and 2019 and will not stand for reappointment as the Company's independent auditor for the Company's financial statements for the year ended December 31, 2020.
KPMG has been the Company's independent auditor since December 21, 2018 and, on August 8, 2019, KPMG withdrew its report dated March 27, 2019 on the Company's financial statements for the year ended December 31, 2018 and its interim report to the Audit Committee dated May 13, 2019 on the interim financial statements for the three months ended March 31, 2019. KPMG has not audited any of CannTrust's financial statements for any period subsequent to December 31, 2018 or expressed any opinion in respect of any of the Company's financial statements for any period subsequent to March 31, 2019.
The Company is in advanced discussions with potential successor auditors and expects to announce a successor auditor in the coming weeks.
For a copy of the Company's reporting package, including the notice of change of auditor and KPMG's response letter, each prepared in accordance with the applicable requirements of Section 4.11 of National Instrument 51-102 – Continuous Disclosure Obligations, please visit www.sedar.com.
CannTrust remains under CCAA protection to facilitate its efforts to resolve its civil litigation claims and complete its review of strategic alternatives, which includes a review of financing options. Aspects of the ongoing efforts remain confidential, and the Company is unable to predict with any certainty either their timing or outcome. In the meantime, the reinstatement of its cannabis licenses and the restoration of its ongoing operations, CannTrust's re-entry into the Canadian recreational and medical cannabis business segments and its entry into the Restructuring Support Agreement are essential to the Company's focus on rebuilding its franchise. For more information about CannTrust's CCAA proceedings, please visit: www.ey.com/ca/canntrust.
About CannTrust
CannTrust is a federally regulated licensed cannabis producer. We are proudly Canadian, operating a portfolio of brands including estora, Liiv and Synr.g, specifically designed to surprise and delight patients and consumers.
At CannTrust, we are committed to providing an exceptional customer experience, as well as consistent and quality products through standardized processes. Our greenhouse produces Grade A cannabis flower, which is currently sold in dried flower, oil drops and capsule formats. Founded in 2013, our continued success in the medical cannabis market and subsequent expansion into the recreational business, led to us being named Licensed Producer of the Year at the Canadian Cannabis Awards 2018.
CannTrust is committed to research and innovation, investing in developing technologies for new products in the medical, recreational, and wellness markets, while contributing to the growing body of evidence-based research regarding the use and efficacy of cannabis.
Learn more at www.canntrust.com.
Forward-Looking Statements
This press release contains "forward-looking information" within the meaning of Canadian Securities laws and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable United States safe harbor laws, and such statements are based upon CannTrust's current internal expectations, estimates, projections, assumptions and beliefs and views of future events.
Forward-looking information and forward-looking statements can be identified by the use of forward-looking terminology such as "believes", "expect", "likely", "may", "will", "should", "intend", "anticipate", "potential", "proposed", "estimate" and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions "may", "would" or "will" happen, or by discussions of strategy.
The forward-looking information and statements in this news release include statements relating to the expectation that CannTrust will announce a successor auditor and the expectation that CannTrust will settle certain civil litigation claims and emerge from creditor protection under the CCAA. Forward-looking information and statements necessarily involve known and unknown risks, including, without limitation: the outcome of the Company's contingent liabilities; the impact of potential regulatory and other investigations; the Company's review of strategic alternatives; risks associated with general economic conditions; adverse industry events; loss of markets; future legislative and regulatory developments in Canada, the United States and elsewhere; the cannabis industry in Canada generally; and, the ability of CannTrust to implement its business strategies.
Any forward-looking information and statements speak only as of the date on which they are made, and, except as required by law, CannTrust does not undertake any obligation to update or revise any forward-looking information or statements, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for CannTrust to predict all such factors. When considering these forward-looking information and statements, readers should keep in mind the risk factors and other cautionary statements in CannTrust's Annual Information Form dated March 28, 2019 (the "AIF") and filed with the applicable Canadian securities regulatory authorities on SEDAR at www.sedar.com and filed as an exhibit CannTrust's Form 40-F annual report under the United States Securities Exchange Act of 1934, as amended, with the United States Securities and Exchange Commission on EDGAR at www.sec.gov (the "March 2019 Form 40-F"). The risk factors and other factors noted in the AIF could cause actual events or results to differ materially from those described in any forward-looking information or statements. Readers are also reminded that CannTrust remains in default of its periodic disclosure requirements under applicable securities laws and stock exchange requirements, that its most recent AIF, Form 40-F and other disclosures do not reflect all risk factors that currently face the Company, and that the Company has not completed or filed the restatements of the financial statements included in the AIF or the March 2019 Form 40-F or otherwise filed an amendment to such Form 40-F, and that the Company has determined not to correct its prior filings or make any further filings in respect of periodic disclosure requirements under applicable securities laws and stock exchange requirements. None of the Company's securities is listed for trading on any stock exchange in any jurisdiction and, in Canada, trading in the Company's securities is subject to a cease-trade order issued on April 13, 2020 by the Ontario Securities Commission for CannTrust's failure to comply with its disclosure obligations under applicable securities laws.
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SOURCE CannTrust Holdings Inc.
FAQ
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