CannTrust Holdings Inc. CTST shares have taken another big hit after the company announced late Thursday that it's going to hold off all of its cannabis products sales and shipments until Health Canada examines its Vaughan Ontario manufacturing facility.
The problem arose earlier this week when Canadian authorities discovered CannTrust’s greenhouse facility in Pelham, Ontario doesn’t comply with all Canadian health regulations. Five unlicensed rooms were found at the facility, after which the authorities had placed a hold on 5,200 kg of dried cannabis produced there.
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The company also announced a formation of a Special Committee of the Board of Directors for the purpose of a thorough investigation of the situation.
The effects on the company’s financial performance are still unclear, and it will remain that way until the investigation is completed.
In the aftermath, the company’s shares fell 10.61% to $2.78 in Friday’s pre-market session.
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Related Links:
'420 Investor' Brochstein To CannTrust CEO: Apologize And Resign
Bank Of America Double Downgrades CannTrust After Health Canada Findings
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