CannTrust hangs by a thread
Published on September 20, 2019 by oz. staff
Health Canada has decided on its punishment for CannTrust after the company grew thousands of kilograms of unlicensed cannabis behind temporary walls.
CannTrust disclosed it received a letter this week notifying of a Notice of Licence Suspension under section 64(1) of the Cannabis Act.
The company can still finish its current crop, but can’t fully process or sell it.
CannTrust is hanging on by a thread. But there is a silver lining for the company — Health Canada can reinstate the licence if “the reasons for the suspension no longer exist or if CannTrust demonstrates that the suspension was unfounded.”
Along with growing illegal weed, even more violations were uncovered at another facility — including two areas built without approval. Health Canada found inadequate security and quality assurance, as well as operating procedures that didn’t meet requirements.
What a gong show.
The next question is could we see a buyout?
Meanwhile, CannTrust has been deleted from the TSX / S&P Composite index. It is still trading… just in case you think this could be a Phoenix disguised as a burning bag of poop.