This Cannabis ETF Just Dodged Another CannTrust Bullet

Just when it seemed it couldn’t get any worse for CannTrust Holdings Inc CTST TRST, we learned Health Canada has suspended its license to produce and sell cannabis.

While suspended going forward, CannTrust will be allowed to complete the cultivation, harvest and sale of existing lots. Still, it’s a big blow for the company, which is trading around all-time lows.

While many are getting burned, The Cannabis ETF THCX, the fund backed by Jon Najarian and Pete Najarian, seems to have dodged a bullet. The managers decided to drop the stock from its portfolio during its August rebalancing.

Click here for more information about the upcoming Benzinga Cannabis Capital Conference Oct. 22-23 in Chicago.

Matt Markiewicz, Managing Director of The Cannabis ETF, mentioned the fund had dropped CannTrust on Aug. 9.

“Health Canada had to take swift and deliberate action in order to protect not only the consumers of cannabis but to ensure all players are operating on a level playing field," Markiewicz told Benzinga. "While this latest announcement is unfortunate news for current shareholders of the stock, it further underscores the need for diversified exposure to this young and burgeoning industry.”

CannTrust's stock traded down another 7.7% to $1.19 per share at time of publication.

Posted In: Jon NajarianMatt MarkiewiczPete NajarianCannabisSector ETFsMarketsETFs

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.