Canadian Cannabis Firm Maricann’s $70M Financing in Limbo, its Directors Resign

TORONTO — Maricann Group Inc. says its underwriters have told the medical cannabis company they are not prepared to go ahead with a $70-million financing and Canada’s biggest securities regulator is conducting a review of certain trades by its directors.

The company, which produces and distributes medical marijuana, says it has not received an official notice of termination for the bought-deal offering, but has been advised orally by the underwriters that they are not prepared to proceed.

Maricann also announced that its chairman Neil Tabatznik and Raymond Stone, a director, have resigned from the company’s board. Paul Pathak has been appointed interim chairman.

The moves come as the company says the Ontario Securities Commission is reviewing the timing and reporting of certain trades of shares owned or controlled by Stone and Tabatznik and Eric Silver.

The regulator has also told the company that Maricann chief executive Ben Ward is the subject of an investigation into his activities while he was CEO of Canadian Cannabis Corp., a wholly unrelated company.

Maricann says it is unaware of any facts that could reasonably lead it to conclude that this investigation has had, or will have, any impact on Ward’s ability to carry out his duties as CEO.

Companies in this story: (CSE:MARI)

The Canadian Press