CannTrust stocks decline after the facility was found to be non-compliant, with the cannabis inventory maintained

Shares listed in the United States of CannTrust Holdings Inc.

CTST, + 0.00%

The Canadian-based cannabis company said its greenhouse facility in Pelham, Ontario was deemed "non-compliant" by regulators. The stock is about to open at the lowest price observed during regular business hours since October 2017. "The note of non-compliance is based on the regulator's observations regarding the cultivation of cannabis in five halls. unlicensed and inaccurate information provided to the regulator by CannTrust Employees ", said the company in a statement. The company stated that 5,200 kilograms of dried cannabis had been put on hold by Health Canada and that the company had voluntarily owned approximately 7,500 kilograms of cannabis equivalent at its Vaughan facility. CannTrust has stated that customers and patients will experience temporary product shortages as a result of being on hold while the company explores options to mitigate shortages. The company said the financial impact is "unknown" until Health Canada has completed its testing. The stock plunged 36.3% in the last three months until Friday, while ETFMG Alternative Harvest ETF

MJ -0.28%

lost 11.5% and the S & P 500

SPX, -0.18%

has gained 3.3%.

Source link