Maricann Group Inc. said the Ontario Securities Commission is investigating certain trading activities of its directors, as well as matters involving CEO Ben Ward.
The Canadian regulator is reviewing the timing and reporting of certain trades of Maricann securities owned directly or indirectly by Chairman Raymond Stone and directors Neil Tabatznik and Eric Silver.
Tabatznik and Stone have resigned from the Canadian medical cannabis producer's board, and Paul Pathak has been appointed as interim chairman of the company.
The investigation has prompted the underwriters of Maricann's C$70 million equity financing to orally notify the company they may not proceed with the offering, although no official notice of termination has been given yet.
Meanwhile, the Ontario Securities Commission is investigating Ward's activities while he was the CEO of Canadian Cannabis Corp., a company unrelated to Maricann.
The company said it was unaware of the matter prior to the regulator's letter Feb. 8 and that no further information was provided by the commission.
Maricann said its directors and CEO are fully cooperating with the respective investigations.
The company has formed a special committee of independent directors to review the matters that will have full authority to make recommendations on addressing these issues.
"We have heard from many significant shareholders of the company about their concerns with these matters, and we share them. In these circumstances, we appreciate Messrs. Stone and Tabatznik having resigned," Pathak, the company's newly appointed interim chairman, said in a statement.
Osler Hoskin & Harcourt LLP is acting as the independent legal counsel of the special committee.
