Ex-CannTrust CEO warned chair on governance last year, letter shows
Ex-CannTrust CEO warned on governance
The former chief executive of CannTrust Holdings expressed concern over the pot producer’s corporate governance practices in December, according to a letter obtained by BNN Bloomberg. Peter Aceto warned then-chairman Eric Paul that the issues needed to be resolved, and said that he “feared” his performance as CEO would suffer as a result of them. The letter, which a CannTrust spokesperson said was not shared at the time with the company’s board, didn’t directly mention the unlicensed production scandal that has plagued the cannabis producer in recent months.
TGOD applies for Nasdaq listing
The Green Organic Dutchman has filed an application to list on the Nasdaq. The Mississauga, Ont.-based cannabis company announced Wednesday it intends to start trading on the U.S. exchange under the ticker TGOD, while also continuing to trade on the Toronto Stock Exchange. CEO Brian Athaide says the move will increase its access to international investors. TGOD’s announcement comes a week after Sundial Growers, another Canadian cannabis producer, began trading on the Nasdaq.
Arizona Tea maker to enter cannabis market
The maker of Arizona Iced Tea is jumping into the cannabis market with plans to launch marijuana-infused vape pens and beverages in the U.S. and Canada, The Wall Street Journal reports. Arizona Beverage said Wednesday it has reached a deal with Dixie Brands – a Denver-based company that makes cannabis-infused gummies, drinks and topicals – to partner on the production, distribution and sale of Arizona-branded THC-infused consumer packaged goods. The deal is subject to approval by Dixie’s board and also gives Arizona the right to buy a stake of up to US$10 million in the cannabis firm.
WeedMD harvesting pot where asparagus once grew
WeedMD is one of 13 Canadian pot companies that have been granted licences for outdoor cannabis cultivation, a cheaper alternative to greenhouse production. The Ontario-based pot producer has planted 21,000 plants on 27 acres that formerly grew asparagus, and expects to harvest more than 25,000 kilograms of dried pot from its outdoor operations this year – more than half its total production – according to Bloomberg News. While outdoor-grown cannabis will account for only a small portion of the Canadian pot market this year, more outdoor licences are expected to be granted after the federal government changed its rules last year.
Bags stuffed with cash add to pressure for U.S. cannabis banking clarity
Bags stuffed with cash may be emblematic of the absurdity of the U.S. federal government’s treatment of the cannabis industry, according to an analysis on U.S. cannabis laws by Bloomberg News. While legal sales exceeded US$10 billion in 2018 with 33 states having legalized the drug in some form, U.S. banks can’t benefit from this revenue stream as pot remains a Schedule I substance nationally. However, as Bloomberg notes, a number of U.S. lawmakers are lobbying for marijuana reform and clarification of rules for banks. This comes as a U.S. House of Representatives measure, which would protect financial institutions that serve cannabis firms, is set for a floor vote in the fall.
“It’s still a young industry – a volatile industry…You’re still going to see companies make the odd trip-up, as we saw in CannTrust.”
-- Canaccord Genuity President and CEO Dan Daviau
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