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.
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