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Globe says SEC told CEN's Chaaban complains of innuendo

2015-01-21 08:53 ET - In the News

The Globe and Mail reports in its Wednesday edition an attempt by CEN Biotech to address serious questions surrounding its bid to become Canada's largest medical marijuana company has led to further examples of problematic claims by the company. The Globe's Grant Robertson writes that in a letter to The Globe, CEN Biotech chief executive officer Bill Chaaban argues his company has been the victim of "innuendo." A Globe investigation detailed questionable conduct by the company in its bid for a Health Canada licence, which it still has not been granted. Misleading statements by Mr. Chaaban helped push the company's stock price up substantially while he sold off more than 71 million shares at a significant profit. The affair casts doubt on how much Health Canada has vetted the conduct of the companies it is licensing. Staff at the Health Ministry have referred questions about CEN Biotech to the U.S. Securities and Exchange Commission. Problems with the new letter include a claim by Mr. Chaaban that he never conducted an interview that contained misstatements about his licence. The Globe quoted Mr. Chaaban as saying in an Aug. 5 interview that CEN Biotech would have its Health Canada licence that month.

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