- Push-out Score determined
- After less than one year in the position
- Robert Marcovitch taking over in the interim
(exechange) — Vaughan, Ontario, Canada, July 25, 2019 — Peter Aceto, chief executive of CannTrust, leaves. As announced by CannTrust Holdings Inc. in a news release on Thursday, July 25, 2019, Peter Aceto leaves his post as Chief Executive Officer at the producer of medical and recreational cannabis after less than one year in the role, effective immediately.
Peter Aceto’s duties as CEO will be taken over in the interim by Robert Marcovitch, most recently Special Committee Chair of CannTrust Holdings Inc., as Interim Chief Executive Officer.
“Non-compliance with Health Canada regulations”
Peter Aceto’s departure from the CEO post is explained as follows. CannTrust said: “CannTrust Holdings Inc. (“CannTrust” or the “Company”, TSX: TRST,NYSE: CTST) today announced immediate senior management changes and other interim actions based on the ongoing investigation being undertaken by a special committee (the “Special Committee”) of its board of directors (the “Board of Directors”).”
“Terminate with cause”
CannTrust added: “The investigation into the Company’s non-compliance with Health Canada regulations and ancillary matters uncovered new information that has resulted in a determination by the Board to terminate with cause CannTrust CEO Peter Aceto.”
Precise information regarding Peter Aceto’s future plans was not immediately available.
Share price decline
The announcement follows a decline in CannTrust Holdings Inc.’s share price of 78% since March 2019.
In the position of CEO since 2018
Peter Aceto became CEO of the Company in October 2018.
Previously, for 10 years, Peter Aceto was President & CEO of Tangerine Bank (formerly, ING Direct); held the positions of Chief Risk Officer, Chief of Staff and Chief Lending Officer at ING DIRECT in the U.S., and was Legal and General Counsel at ING DIRECT in Canada.
Push-out Score determined
The Push-out Score™ determined by exechange gauges the pressure surrounding the management change on a scale of 0 to 10.
Read the full story in the exechange report 31.2019 ($).