Why CannTrust (TSX:TRST) Crashed More Than 20% Yesterday

Posted by David Jagielski

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CannTrust Holdings Inc(TSX:TRST)(NYSE:CTST) investors got more bad news on Monday when they learned that the company’s operations were found non-compliant with Health Canada’s regulations.

In its Pelham, Ontario facility, CannTrust had been growing cannabis in rooms that were not yet licensed and still pending approval. Although they did ultimately receiving licenses in April 2019, it didn’t change the fact that the company was growing in the rooms prior to then.

What’s also troubling is that regulators noted that “inaccurate information” was provided by CannTrust employees. As a result of the infractions, Health Canada is holding 5,200 kilograms of dried cannabis that CannTrust previously harvested from those rooms. The company is also voluntarily holding 7,500 kilograms at its Vaughn location, which also has cannabis produced from those rooms…..CLICK for complete article