Recap of the bad day of Canntrust

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Another rebound today in CannTrust’s history.

Before noon, Canntrust’s shares were halted by IIROC for a pending news.

TORONTO, Sept. 17, 2019 /CNW/ – The following issues have been halted by IIROC: 

Company: CannTrust Holdings Inc. TSX Symbol: TRST (all issues)

Reason: Pending News  Halt Time (ET): 11:32:00 Am

IIROC can make a decision to impose a temporary suspension (halt) of trading in a security of a publicly-listed company. Trading halts are implemented to ensure a fair and orderly market. IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.

During this time, several shareholders have found that nearly half of CannTrust’s management team removed from website.

BEFORE
AFTER

The wait was long for many investors who were waiting to know what would become of the company following the stoppage of trasaction.

RUMORS

The rumors took off quickly on the internet and some speculated on a potential buyout of the company.

Even Bruce Linton the former co-chief executive officer and founder of pot giant Canopy Growth Corp. told in an interview Tuesday that he advised executives at Sundial Growers Inc. to pursue an acquisition of CannTrust assets last month.

PRESS RELEASE…FINALLY

But the news came out soon after and Canntrust said that it received notice from Health Canada earlier Tuesday morning that it won’t be able to sell and produce cannabis, other than cultivating and harvesting existing plants.

But the good news is that Canntrust still has a way out because Health Canada has issued a list of actions that could allow the company to see a license review.

VAUGHAN, ON, Sept. 17, 2019 /PRNewswire/ – CannTrust Holdings Inc. (“CannTrust” or the “Company”, TSX: TRST,NYSE: CTST) announced that it received late this morning a Notice of Licence Suspension (the “Notice”) under section 64(1) of the Cannabis Act (Canada).

The Notice cites the Company’s previous non-compliance with certain requirements of the Cannabis Act (Canada) and the regulation made thereunder (the “Cannabis regulations”) in respect of the matters that the Company has been discussing with Health Canada.

The Notice states that Health Canada has suspended CannTrust’s authority to produce cannabis, other than cultivating and harvesting, and to sell cannabis. As such, the Notice constitutes a partial suspension of the Company’s licence for standard cultivation and a full suspension of its licences for standard processing, medical sales, cannabis drugs and research issued under the Cannabis regulations. While the suspension remains in effect, CannTrust will be permitted to cultivate and harvest existing lots or batches previously propagated, as well as conducting ancillary activities to those lots, including drying, trimming and milling. During the suspension, CannTrust may not propagate new lots or batches of cannabis or engage in the sale or distribution of cannabis. The Notice states that Health Canada will reinstate CannTrust’s licences under section 64(4) of the Cannabis Act if the reasons for the suspension no longer exist or if CannTrust demonstrates that the suspension was unfounded.  The Notice also states that Health Canada considers that implementation of the following measures could potentially address the public health and safety risks that contributed to Health Canada’s decision to issue the Notice:

Measures to ensure that cannabis will be produced and distributed only as authorized, including measures to control the movement of cannabis in and out of CannTrust’s site;

Measures to recover cannabis that was not authorized by CannTrust’s licence;

Measures to improve key personnel’s knowledge of, and compliance with the provisions of the Act and the Regulations that apply to CannTrust; and,

Measures for improving the manner in which records are kept, including a plan to improve the inventory tracking, and any interim measures to ensure that information provided to Health Canada can be reconciled.

The Company’s management and Board of Directors are reviewing the Notice with the Company’s counsel and other advisors. 

Over the past two months, the Company has moved swiftly to assess and address Health Canada’s concerns, including areas of operational non-compliance. The Company remains committed to being in full regulatory compliance.

Canntrust shares is likely to suffer further mistreatment in the coming days but there is still hope for the company’s shareholders.


This article is written and published by The Cannabis Stock


Disclaimer : The Cannabis Stock wants to promote the cannabis market with the best publication on the market. The Cannabis Stock does not recommend selling or buying any of the company mentioned and is not responsible for any losses that may result.Separator


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