CannTrust’s cannabis license suspended after illegal grows discovered, stock falls 12%
CannTrust Holdings Inc. said Tuesday afternoon that Health Canada has suspended the cannabis company’s license to produce and sell cannabis. Regulators halted CannTrust stock Tuesday morning pending news after its U.S.-traded shares fell 3.3% in morning trading. Once trading resumed at 3:30 p.m. Eastern time, the stock fell more than 10%. Late Tuesday Health Canada told MarketWatch in an emailed statement that it is in the process of “seizing and detaining all cannabis products” at the Pelham and Vaughn, Ontario sites. While the suspension is in effect, CannTrust is permitted to cultivate and harvest existing crops and is allowed to dry and trim that marijuana. CannTrust is not permitted to grow fresh batches of weed or sell cannabis while the suspension is in effect. CannTrust ran afoul of the law by growing cannabis in unlicensed rooms, some of which was exported to medical patients in Denmark.
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