CannTrusts auditor no longer endorses 2018 financial statement amid controversy

Companies in this story: (TSX:TRST)The Canadian Press VAUGHAN, Ont. — CannTrust Holdings Inc. says its independent outside auditor has withdrawn its endorsement of the 2018 financial statements, the latest fallout from recent revelations about illicit grow rooms at the Ontario-based cannabis company.The Ontario Securities Commission and RCMP confirmed last week they are investigating issues around unlicensed growing at CannTrust’s greenhouse.That follows a Health Canada probe that found the company had grown cannabis in several rooms at its Pelham, Ont. facility without government approval, and that employees had provided inaccurate information to regulators.CannTrust now says auditing firm KPMG LLP has withdrawn its March 27 report on 2018 financial results and declared that the audited results can’t be relied upon as accurate.However, CannTrust says it will co-operate with KPMG, which remains its outside auditor, as well as authorities investigating the matter. CannTrust’s shares have fallen more than 50 per cent on the Toronto Stock Exchange since the scandal broke and the scandal has led to the ousting of the company’s CEO and the chairman of its board of directors.The company has warned that it would likely miss its filing deadline for an interim financial report because of the significant uncertainty on the impact of the pending Health Canada decisions.“We will continue co-operating with our auditor and regulators, and take whatever steps are necessary to restore full trust in the company’s regulatory compliance. Our medical patients, customers, shareholders and employees deserve nothing less”, Robert Marcovitch, the company’s chief executive officer said in a statement Friday.Health Canada’s probe could result in the suspension or termination of CannTrust’s cannabis licences and fines up to $1 million.Illegal cultivation is also a criminal activity under the Cannabis Act, for which individuals could face up to 14 years in jail.The Vaughan, Ont.-based company, which has halted all sales and shipments as Health Canada continues its probe, said it had hired a financial adviser to help it explore a potential sale and other strategic alternatives.CannTrust has disclosed that the production in five unlicensed rooms took place between October 2018 and March 2019, before it received licences for those rooms in April 2019. read more

New mining focussed sales office for ContiTech in Peru

first_imgAs a leading manufacturer of conveyor belts for the mining industry, ContiTech Conveyor Belt Group says it offers “flexible, qualified, and customer-oriented service worldwide.” On August 1, 2014, this business unit of ContiTech opened a sales office in Lima, Peru, where the goal is to build up a local service team that supervises projects on location.“Peru’s mining sector is the fastest growing mining sector in South America. Many investments are being planned for the coming years. Furthermore, Peru has a large number of mineral resources that have not yet been tapped into,” said Silvia Braatz, Director of Peru Operations, adding: “Our target groups are therefore primarily mining companies and the mining industry.” The team will focus on the high-quality textile and steel cord conveyor belts made by ContiTech.The sales office will mainly be operated by the ContiTech production location in Santiago, Chile. “With the company strategy ‘ContiTech Conveyor Belts – First Choice,’ we manufacture according to German quality standards and our products profit worldwide from the know-how of our engineers. Furthermore, we are able to guarantee short transport routes this way,” explained Braatz. In addition to the sale of textile and steel cord conveyor belts, like ContiTech STAHLCORD for example, the development of a service team is also being planned. Amongst other things, the employees will handle assembly work as well as repairs directly at the mine operators in Peru.last_img read more