CannTrust Holdings Inc (NYSE:CTST) announced while providing its interim update that it applied and successfully received an approval for its Management Cease Trade Order (MCTO) from the Ontario Securities Commission (OSC).
The MCTO issued by the OSC will prevent any of the company’s officers, directors, and other insiders from trading CannTrust shares. These are individuals that may have access to sensitive material that the company has not yet disclosed to the general public. The company however made it clear that the MCTO will not affect investors who are not insiders, meaning that they will still be able to trade the company’s stock.
“This action maintains liquidity for Canadian investors, who can continue to trade the company’s securities at this time,” stated OSC’s public affairs manager, Kristen Rose.
CannTrust revealed earlier this month that it would make an MCTO filing with the OSC due to its high likelihood of missing the August 14, 2019 filing deadline. The missed deadline means that the firm would not manage to file its interim financial report on time for Q1 and Q2 2019, as well as the overall performance for the first half of 2019.
Howe CannTrust will handle the filings moving forward
The filing and announcement of the Q2 2019 financials now rests on the decisions to be made by Health Canada regarding CannTrust’s failure to comply with regulations. However, a special committee has been created to guide the cannabis firm through a remediation plan and submission to Health Canada.
The MCTO will remain in effect, thereby barring executive officers and directors from trading CannTrust’s stock until two days after the company makes all the required filings as required by Ontario securities laws. This includes the filing of its Q2 2019 financials. The MCTO is also a formal action but the company had already gotten its executives and directors to voluntarily agree to the no trading request.
CannTrust also intends to comply with the alternative information guidelines as per the NP 12-203 provision by filing status reports twice every week. The bi-weekly filings will be presented as news releases that will offer updates until the company files its Q2 financials.