From Bad To Worse For CannTrust, CEO fired, promotional videos filmed in unlicensed rooms

First, Aceto’s termination

The Canadian Financial Post reports

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.

“The investigation into the company’s non-compliance with Health Canada regulations and ancillary matters uncovered new information that has resulted in a determination by the Board to terminate with cause CannTrust CEO Peter Aceto,” said a company statement issued Thursday evening.

“In addition, the Board of Directors demanded the resignation of the company’s chair Eric Paul and he complied,” the statement added.

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.

“Our first priority is to complete the remaining items of our investigation and bring the company’s operations into full regulatory compliance. Implementing the necessary changes is essential to the interests of our medical patients, customers, shareholders and employees,” Marcovitch said in the statement.



Here’s the report about the video

If the allegations are true that’s another nail in the coffin for this company and we hasten to add some days in court may well be coming soon, too.



The chief executive of CannTrust Holdings Inc. regarded in a promotional video filmed immediately open air an unlicensed hashish grow room at the firm’s Pelham, Ont., facility in early 2019, according to a used employee who became once display when the video became once shot.

The video, which became once printed by CannTrust’s YouTube sage on Feb. 27, 2019, reveals firm CEO Peter Aceto chatting with a plant production supervisor open air a room plump of hashish crops. The crops is probably going to be clearly seen through what appears to be like to be a plastic wall with metal hinges — on one event, the production supervisor gestures in direction of the crops in the grow room to stress a level.

5 used workers who spoke to the Submit identified the room in the video as RG8 or Differ 8, noting that its plastic partitions were a distinguishing feature. Three of those workers worked in the room as grow technicians between October 2018 and April 2019, the six-month period one day of which CannTrust has acknowledged it became once cultivating unlicensed hashish. Two of the staff observed the video being filmed in early 2019.

“I knew RG8 became once no longer licensed on sage of they veteran to scream if a room came on-line,” mentioned one in every of the used workers, whose role became once supervising grow technicians in the potential. “The ingredient that blew my mind became once when Aceto became once standing appropriate in entrance of RG8 filming that video, doing an interview. That became once way sooner than the room grew to turn out to be exact.”

RG8 is the identical room in which Prick Lalonde, yet some other one in every of the five used workers, mentioned he became once asked to hang poly partitions by his rapid supervisor, to shroud up “thousands of hashish crops” sooner than a Health Canada inspection. Loads of days after Lalonde educated Health Canada of the poly wall incident, the department performed a surprise inspection of the Pelham facility.

“I did no longer know the room became once unlicensed sooner than I hung the poly partitions, however then I started to suspect it and investigated extra,” Lalonde advised the Submit. He added that he became once “taken aback” Aceto became once filming a video in entrance of RG8 at the time the video became once shot.

(Video supply: CannTrust/YouTube)

The room became once moreover referenced in a Globe and Mail document on Tuesday that quoted a November 2018 electronic mail by CannTrust’s director of quality and compliance, Graham Lee, telling quite a lot of high firm executives including Aceto that they had “dodged some bullets” on the subject of a Health Canada inspection.

“[Health Canada] did no longer quiz about RG8E/W, which are unlicensed rooms at the 2nd plump of crops,” Lee’s electronic mail mentioned, according to the document.

One other used employee who worked in Differ 8 moreover mentioned that formula of the video were filmed there.

“I’m able to allege 100 per cent that that video became once shot open air of Differ 8. They pan to in the abet of Peter in the video and also you can see our supervisors’ desk. Differ 8 had the excellent plastic wall that you might possibly possibly well possibly see plump grown crops from contained in the potential,”

Your whole used workers the Submit spoke to, except for for Lalonde, declined to be named for horror of exact repercussions from CannTrust and for being labelled as “snitches” by their display employers. All are composed employed in the hashish industry.

In a July 8 assertion, the firm mentioned that Health Canada had given it a non-compliant ranking for growing hashish in five unlicensed rooms in the Pelham facility.

I’m able to allege 100 per cent that that video became once shot open air of Differ 8

Those five rooms, which were no longer identified in the assertion, most attention-grabbing obtained Health Canada licensing in April 2019, two months after the video became once printed on YouTube.

In an interview with the Submit on the day CannTrust announced it became once being investigated by Health Canada, Aceto became once immediately asked if he knew that hashish became once being grown in unlicensed formula of the Pelham facility. “It’s a quiz I even have thought about plenty,” he mentioned at the time. ”Getting to have what took suppose right here’s a priority.”

When asked about the video, CannTrust spoke back with a press commence attributed to Robert Marcovitch, a member of the firm’s special committee which became once appointed by the board earlier this week to study the unlicensed growing at Pelham.

“The Honest Special Committee of the Board of Directors of CannTrust is in the final stages of a radical investigation of those matters as section of our due diligence requirements. We quiz to cessation this investigation interior days and can steal all acceptable actions straight thereafter,” Marcovitch mentioned.

CannTrust promotional video featured CEO standing in entrance of unlicensed room, used workers claim


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