Shares of medical and recreational cannabis producer CannTrust Holdings Inc CTST gained more than 8% Wednesday morning after confirming an exploration into strategic alternatives.
What Happened
CannTrust established a special committee after Health Canada found the company to be producing cannabis in multiple unlicensed rooms. On Wednesday, the special committee retained a financial advisor to assist in a review of strategic alternatives, including a potential sale of a portion or all of the company.
Other options that will be explored include a business combination, changes to the company's operations or strategy, or executing on the current business plan.
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Prior actions overseen by the strategic review include the immediate termination of CEO Peter Aceto with cause and the resignation of chairman Eric Paul.
Why It's Important
The strategic review is dependent on multiple factors, including a resolution of regulatory compliance issues identified by Health Canada, the company said.
CannTrust said there is no assurance a review of strategic alternatives result in any transaction.
CannTrust's stock traded higher by 6.5% to $2.29 per share at time of publication.
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