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CannTrust Tumbles After Report Executives Knew About Illegal Pot Growth 

Published 07/24/2019, 11:30 AM
Updated 07/24/2019, 01:38 PM

Investing.com - CannTrust tumbled in midday trade on Wednesday after a report suggested that its executives knew it was growing unlicensed cannabis.

The report by Canada’s Globe and Mail caused shares of CannTrust Holdings (NYSE:CTST) to slump more than 20%.

The report cites internal emails that show CannTrust Chairman Eric Paul and CEO Peter Aceto knew about the breach seven months before regulators forced the company to halt sales.

The company told the Globe and Mail that it is conducting an investigation into the matter that will be completed soon.

Health Canada issued a non-compliant rating on July 8 for growing marijuana crops in five unlicensed rooms between October and March. Sale of its products are currently on hold and have been pulled from stores.

Other cannabis companies were lower after the news, with Canopy Growth (NYSE:CGC) falling 0.5%, Aurora Cannabis (NYSE:ACB) slipping 1.4% and Altria Group (NYSE:MO) down 0.6%.

Latest comments

I'm buying in the $2-3 range, bargain bin fire sale prices entry into medical marijuana market. Much much cheaper than peers, for a reason yes, but this is being priced like bankruptcy is a month away lol.
They need to fire guys responsible. its not fair to share holders and patients.
They will be lucky if they get away with just losing their license ,  i think this could be a lot worse for some of the senior boys if half of what is going around is proved !!
this happens everywhere, you'd be surprised. cannabis companies send it right out the back door. they don't loose their license tho. fines
could this be a buy now? will they go back up if health Canada reinstates their license? risky but it could work.
crap like this will be the downfall of legalization, that's greed for ya.
This is good news for Aurora the competetion is on hold a good time to make some sales
The madness never ends
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