CannTrust Holdings Inc. is undertaking a strategic review that could potentially result in full or partial sale of the company.
A special committee of CannTrust's board hired Greenhill & Co. Canada Ltd. as financial adviser to assist in the review of strategic alternatives, including sale, business combination, strategic investment as well as changes to the company's operations and current business plan.
The committee was formed to investigate Health Canada's compliance report, which said the company was involved in growing cannabis in five unlicensed rooms in its Pelham, Ontario-based greenhouse facility.
The board terminated CEO Peter Aceto as a result of a probe into the illegal cultivation of cannabis that flouted Health Canada regulations, while Eric Paul stepped down as chairman at the board's request.
The company said there is no set timetable for the conclusion of the review and that the exercise may not result in any transaction.
The strategic review process will be influenced by the resolution of the company's regulatory compliance issues with Heath Canada, among others, CannTrust said in a news release.