Toronto, June 5, 2026, 15:04 EDT
- TerraVest shares dropped over 30% Friday afternoon after the company said its board will look into claims about Executive Chairman Charles Pellerin.
- Quebec’s AMF suspected Pellerin shared privileged TerraVest info before the EnTrans deal, according to a Journal de Montréal report citing a search warrant. No charges had been filed, the report said.
- TerraVest shares dropped sharply on a down day for the TSX, a move that looked tied more to a governance issue at the company than to the market.
TerraVest Industries Inc. shares dropped sharply in late Toronto trading Friday after the company said its board will look into claims about Executive Chairman Charles Pellerin. The news hit a stock that had been trading close to all-time highs earlier this year.
The stock dropped 30.54% to C$110.05 as of 2:45 p.m. EDT. Shares opened at C$141.50 and hit C$95.00, which Google Finance listed as both the session’s low and 52-week low. Trading volume was 1.27 million, around 14 times normal.
TerraVest is viewed by investors as an industrial company built through acquisitions. It makes products like home heating units, transport equipment for propane and NGLs, energy processing gear and fiberglass tanks. The company lists Charles Pellerin as executive chairman and Dustin Haw as CEO.
Quebec’s securities regulator AMF suspects Pellerin passed privileged info on TerraVest to family and friends before the EnTrans deal, helping them pull in close to C$6.8 million in illegal profits, the Journal de Montréal said. Insider tipping involves relaying confidential information to someone before it’s made public and can move a stock. No official charges had been filed, according to the report.
TerraVest said it was made aware of “certain allegations” related to Pellerin following a news article. The company said it is taking the matter seriously, with the board—minus Pellerin—starting a review after getting advice from legal counsel. TerraVest said it’s ready to work with regulators if they reach out. Newswire
TerraVest’s reaction started with the EnTrans deal. TerraVest bought EnTrans International in March 2025 for US$546 million up front, plus as much as US$46 million in earn-outs, in what it called its biggest deal yet. CEO Dustin Haw said then the acquisition was “transformational for TerraVest.” TerraVest Industries
Canada’s main stock index slipped in early trade. The S&P/TSX composite index lost 1.1% to 34,805.40 just after the open, with both U.S. and Canadian jobs numbers adding to bets on higher rates. “With the Bank of Canada decision coming up and more macro data due, that’s what we will be focused on in the near term,” Michael Constantino, CEO of Webull Canada, told Reuters. Reuters
TerraVest shares tumbled much harder than the index. In a Q&A for investors, 5i Research called the stock’s nearly 30% drop a “‘shoot first ask questions later’ type of move” and said the fall “feels a bit overdone.” 5i Research
TerraVest moved ahead with deals even as shares sold off this week. The company said June 4 it bought Jet Peinture Plus, a Quebec propane tank refurbisher, paying with cash and existing credit lines. Back on June 1, TerraVest picked up assets from B&R Repair, which runs transport services in Illinois, Pennsylvania and Indiana, also using cash and credit.
TeraVest’s mixed second quarter numbers set the backdrop before Friday’s governance headlines. The company said sales rose 42% to C$442.6 million, lifted by 2025 and 2026 acquisitions, but net income dropped 62% to C$12.7 million. Adjusted EBITDA, a profit figure that excludes certain items like interest, taxes, depreciation, and one-offs, climbed 15% to C$75.5 million.
Comparisons in the sector aren’t precise. TerraVest is grouped with general industrials by FT market data, alongside stocks like Pason Systems, Trican Well Service, CES Energy Solutions and Enerflex. Still, Friday’s selling hit over governance and regulatory risk, not because of demand issues in tanks, trailers or energy gear.
The board review could linger and weigh on TerraVest’s acquisition strategy, its ability to get financing, or even its management setup. On the other hand, TerraVest hasn’t said regulators have reached out, and the newspaper noted there aren’t any charges. The company’s businesses are still running while the board takes a look.
Investors are watching for three things right now: news from TerraVest’s board, a signal from regulators, and confirmation that the company’s July 10 dividend will go out to holders as of June 30.
