July 31, 2019 / 12:05 PM / 3 months ago

UPDATE 1-CannTrust says reviewing options, including sale

(Adds details from statement, background)

July 31 (Reuters) - Marijuana producer CannTrust Holdings Inc said on Wednesday it was exploring a possible sale, days after it fired its top boss following an investigation by Health Canada that showed the company grew cannabis in unlicensed rooms.

The company named Robert Marcovitch, who is chairing a special committee looking into CannTrust’s non-compliance with Health Canada regulations, as its interim CEO.

Canntrust, which had a market value of C$401 million as of Tuesday’s close, said on Wednesday it had hired Greenhill & Co. Canada Ltd as financial adviser to assist in its review of alternatives.

CannTrust said the financial impact of the Health Canada disclosure was still unknown, but added that it was preparing to make additional operational changes in the weeks ahead.

U.S.-listed shares of the company rose about 9% to $2.35 in premarket trade. (Reporting by Shradha Singh in Bengaluru; Editing by Shailesh Kuber and Saumyadeb Chakrabarty)

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