CannTrust (CTST) - Get Free Report was down nearly 5% in trading Friday after the troubled Canadian cannabis company announced that its auditor, KPMG LLP, withdrew its report on the company's financial statements for full year 2018 and its interim report on May 13.
KPMG will remain the company's auditor.
CannTrust said there was significant uncertainty with respect to the potential impact of the pending decision by Health Canada regulators on the value of its inventory after the agency said that CannTrust was growing pot in illegal grow houses.
Additionally, CannTrust said that it recently shared "newly uncovered information" from its own special committee's investigation, an investigation that led to the ouster of its CEO on July 25, that called into question the validity of its financial statements.
"We will continue cooperating with our auditor and regulators, and take whatever steps are necessary to restore full trust in the company's regulatory compliance. Our medical patients, customers, shareholders and employees deserve nothing less," said CEO Robert Marcovitch.
The stock was down 4.44% in trading to $2.15.