CannTrust Holdings Inc. shares continued their rout after a ninth analyst downgraded the stock Thursday in response a regulatory breach that has forced the company to halt sales of nearly 30,000 pounds of pot.
Several law firms have either filed or are investigating lawsuits against the company after Canadian regulators gave a non-compliant rating to its greenhouse in Pelham, Ontario. It was found to have grown pot in five unlicensed rooms between October and March, and CannTrust employees were also found to have provided inaccurate information to the regulator.
About 12,700 kilograms of CannTrust’s cannabis inventory has been put on hold pending the outcome of an investigation by the Canadian government, and Ontario and Alberta have both stopped selling CannTrust products while the investigation by Health Canada is ongoing.John O'Connell, Davis Rea Ltd.
It’s a tinker box of a market oversupplied with crappy weed.