OSC says no reasonable prospect of conviction in CannTrust case

TORONTO –

The Ontario Securities Commission says it no longer has a reasonable prospect of conviction against three former cannabis company leaders linked to securities offenses at CannTrust Holdings Inc.

The regulator had alleged the former executives committed securities offenses by not disclosing to investors that about 50 per cent of the growing space at the company’s Pelham, Ont. facility was not licensed by Health Canada.

Former CannTrust chief executive Peter Aceto, former chairman Eric Paul and former vice-chairman Mark Litwin pleaded not guilty earlier this year to several offences related to unlicensed growing at the facility in 2021.

They were each charged with fraud and authorizing, permitting or acquiescing in the commission of an offence.

Litwin and Paul were also facing insider trading charges, and Litwin and Aceto were charged with making a false prospectus and false preliminary prospectus.

The company fired Aceto in 2019, forced Paul to resign and later, Litwin resigned.

This report by The Canadian Press was first published Dec.14, 2022