A report from Globe and Mail showed that Eric Paul and director Mark Litwin sold approximately $6-million of Canntrust Holdings (TSX: TRST) (NYSE: CTST) stock shortly after being informed in writing that CannTrust was illegally growing marijuana plants in unlicensed rooms.
Both Eric Paul and director Mark Litwin sold nearly $1-million worth of shares on Nov. 16 last year. Of course, this was the same day a CannTrust executive sent, and Mr. Paul replied to, an e-mail that outlined the company’s illicit growing operations.
We dodged some bullets….. [Health Canada] did not ask about RG8E/W, which are unlicensed rooms currently full of plants.”
Graham Lee, VP Compliance to Chairman Eric Paul, Leaked Email, Source: Globe and Mail
Cannamed Financial Corp, a holding company controlled by Chairman Paul and director Litwin sold nearly $6-million worth of shares in the weeks after Nov. 16 last year.
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Of course, insider trading is not illegal, unless the executives possess information that would materially impact the stock price of the company; which clearly is the case here.
Paul was forced to resign as chairman last week.
If has been a tough month for CannTrust who is down approximately 57% from their 1 month high.
Information for this briefing was found via Globe and Mail and CannTrust Holdings. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
