CannTrust Holdings Inc. tumbled another 17 percent Friday after the Canadian pot company halted sales of its products while its chief executive officer said regulators are inspecting a second facility.
CannTrust shares have lost 48 percent since the beginning of the week, when it disclosed that Canadian regulators gave a non-compliant rating to its greenhouse in Pelham, Ontario. In an unannounced inspection, regulators found the company grew pot in unlicensed rooms, provided “false and misleading information” to inspectors and had inadequate record keeping, according to Health Canada spokeswoman Tammy Jarbeau.
Now regulators are also inspecting CannTrust’s facility in Vaughan, Ontario after the company “voluntarily brought forward a handful of compliance issues,” including with storage, CEO Peter Aceto said in a phone interview.
“The possibility of a license suspension remains real; however, it is highly uncertain at this time,” Eight Capital analyst Graeme Kreindler wrote in a note. “In the event of a suspension, we believe that TRST’s cash position could sustain the company for a period of approximately 12 months considering last quarter’s operating burn was $19 million.”
Read more at bnnbloomberg.ca