Can CannTrust earn back the trust?


November 8, 2019 Facebook Twitter LinkedIn Google+ Brands On The Move


CannTrust

CannTrustWhat is a company who’s business model is based on producing something they are not legally allowed to produce? An anchor? A golden resurrection opportunity? In the next 4 months we will have answer as that is when CannTrust has stated the company plans to complete all the activities it needs in order for Health Canada to restore their license to produce cannabis products.

The fall of CannTrust and what happened

In case you missed it, Toronto-based CannTrust has its sales and production license by Health Canada back in September 2019. Why? The company broke the law and was out of compliance which also lead to the firing of CEO Peter Aceto.
Investors has put a lot of pressure on cannabis company to produce revenue, unfortunately CannTrust took the wrong short cuts – and got caught. We also saw that investors started to show dissatisfaction for the underperforming cannabis industry, some pulling their money, others pushing leadership to be more creative.

With production on a halt in production and a suspended sales licence the company also had to lay off of 140 employees, but states this all is just “temporary.”  CannTrust holds itself liable to pay $800,000 to the employees in case it does not recall the employees within 35 weeks. 

Canntrust 2.0

It is possible for Canntrust [TCO] to turn itself around, it will just take a smart plan and dedicated leadership.  Robert Marcovitch, the chairman and interim CEO of CannTrust is confident that a turn around can happen and the company can return back to compliance.  The company has increased its internal training program, expanded its operations framework, infrastructure enhancements, prescribed accountabilities, and a strengthened governance structure, as just a few steps that have been taken oer the last few months.


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