The unhealthy information retains on coming for CannTrust Holdings Inc. (TSX: TRST; NYSE: CTST) inventory holders this week. After an organization whistleblower initiated a Well being Canada audit and revealed CannTrust had been rising cannabis in unlicensed rooms for six months, at present the corporate has voluntarily suspended all product gross sales.
That maintain is in place whereas a regulator for Well being Canada critiques the greenhouse facility in Vaughan, Ontario the place the unlicensed rising occurred. Commenting on the event, the corporate issued this assertion at present:
CannTrust positioned a maintain on medical gross sales by our customer support line and on-line as of 11:59 p.m. on July 10. We’re working intently with the regulator by the overview course of and count on to offer additional element on the period of the maintain as they grow to be obtainable.
Previous to this complete suspension on all gross sales and shipments, the corporate had held again greater than 12,000 kg of unshipped product in the course of the overview course of, which Chief Govt Officer Peter Aceto not too long ago warned would result in provide shortages.
The announcement about briefly ceasing gross sales on a voluntary foundation could sound acquainted to pot inventory merchants, as the identical course of was initiated by Bonify again in January when that firm was found to be promoting unlicensed product.
Following a overview kind Well being Canada, Bonify’s license to promote cannabis was revoked the following month, and the corporate’s web site nonetheless shows a message about product ordering on non permanent maintain to this present day.
Along with the voluntary product maintain, at present CannTrust introduced the formation of a particular committee consisting of impartial board members. That committee has now initiated a overview course of to research the rising of unlicensed product, which occurred in 5 rooms on the Vaughan facility from October 2018 to March 2019.
The corporate’s inventory has dropped greater than 50% since that information broke, and is at present buying and selling at a value of $2.72 as of Friday afternoon.
Whereas CannTrust has stopped posting updates and responding on social media, sufferers with questions on how this impacts their potential to amass cannabis prescriptions can contact the corporate by way of e mail at [email protected].ca or communicate to a consultant immediately by calling 1-855-RX4-CANN.