CannTrust stock falls after voluntary halt of all cannabis sales, shipments

VAUGHAN, Ont. – Shares of CannTrust Holdings Inc. fell as much as 11 per cent after the cannabis company announced it was voluntarily halting all sales and shipments amid Health Canada’s investigation.

CannTrust’s stock was trading at $3.90 on the Toronto Stock Exchange at mid-morning, down 11.1 per cent from its previous close of $4.04.

That’s sharply down from its $6.46 closing price last Friday, before CannTrust announced on Monday that it was notified by Health Canada about unlicensed cultivation at its Ontario greenhouse in rooms which had yet to receive government approval.

CannTrust said Monday that Health Canada put 5,200 kilograms of cannabis on hold and it voluntarily put another 7,200 kilograms of product on hold, but would continue with cultivation and sales.

But late yesterday, CannTrust announced a voluntary hold on the sale and shipment of all cannabis products as a precaution while Health Canada visits and reviews its Vaughan, Ont.-based manufacturing facility

The cannabis company also announced that an independent special committee of CannTrust’s board of directors has been established to “investigate this matter in its entirety.”

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