In the latest CannTrust (NYSE: CTST) news, the company’s stock is sinking following news that regulators have seized the business’ cannabis. The company’s stock price was down to a low of nearly two years as the business announced that regulators made the cannabis seizure after discovering that it was growing the product in unlicensed rooms.
What is going on with CannTrust?
The company filed to restructure under the Companies' Creditors Arrangement Act, an approximate Canadian equivalent of Chapter 11 bankruptcy, in March 2020 after it ran into compliance issues with Health Canada over its cannabis production facilities. CannTrust has until Jan. 31 to address the default.
Will CannTrust recover?
CannTrust has made progress on its objective to fully restore its operations as a Canadian recreational and medical cannabis producer. In late 2020, CannTrust relaunched two recreational cannabis brands in the Canadian market, liiv and SYNR. G, and introduced a new medical cannabis brand, estora medical in early 2021.
What will happen to CannTrust shareholders?
Amsterdam-based holding company Marshall Fields International BV and a group of individual investors will acquire 90 per cent of CannTrust Equity. CannTrust Equity is a new subsidiary of CannTrust Holdings, and holds the company's cannabis licences through its operating division, CannTrust Inc.
Is CannTrust a good buy?
If you are looking for stocks with good return, CannTrust Holdings Inc stock can be a bad, high-risk 1-year investment option. CannTrust Holdings Inc real time quote is equal to 0.0110 USD at 2022-06-08, but your current investment may be devalued in the future.
Can delisted stock come back?
A delisted stock can be relisted only if SEBI permits it. The market regulator lays out different guidelines for relisting such shares. Relisting of voluntarily delisted stocks: Such shares will have to wait five years from their delisting date to get relisted again.
What happens if stock is delisted?
A delisting does not directly affect shareholders' rights or claims on the delisted company. It will, however, often depress the share price and make holdings harder to sell, even as thousands of securities trade over-the-counter.
Will Cnttq stock go up?
CannTrust Holdings Inc (Over The Counter Market:CNTTQ) The 1 analysts offering 12-month price forecasts for CannTrust Holdings Inc have a median target of 9.19, with a high estimate of 9.19 and a low estimate of 9.19. The median estimate represents a +83,405.97% increase from the last price of 0.01.
Is there a class action lawsuit against CannTrust?
In their class-action lawsuit, the plaintiff alleged the share price of CannTrust declined after July 8, 2019, when the company received a compliance report from Health Canada that explained how one greenhouse facility in Ontario was non-compliant with regulations.
Who owns CannTrust holdings?
Phoena Holdings Inc. is 90% owned by a group of investors led by Marshall Fields International B.V., a subsidiary of Kenzoll B.V. with the remaining 10% owned by CannTrust Holdings Inc. ("CannTrust").
Where is Canntrust growing cannabis?
Health Canada found that CannTrust was growing cannabis in five unlicensed rooms at the Pelham greenhouse, CannTrust said. The "inaccurate information" given to the regulator came from employees, the company said.
Is Canntrust on hold?
Canadian cannabis producer CannTrust ( CTST) on Monday said thousands of kilograms of its weed have been placed on hold after regulators found the company grew cannabis in unlicensed rooms and gave those regulators "inaccurate information." CannTrust stock plunged Monday morning, while most other marijuana stocks retreated.
Disappointing fourth-quarter results are weighing on the Canadian marijuana stock
Keith began writing for the Fool in 2012 and focuses primarily on healthcare investing topics. His background includes serving in management and consulting for the healthcare technology, health insurance, medical device, and pharmacy benefits management industries. Follow @keithspeights
What happened
Shares of CannTrust Holdings ( OTC:CNTTQ) were crashing 16.8% lower as of 11:24 a.m. EDT on Thursday. The Canadian marijuana producer announced disappointing fourth-quarter results before the market opened.
So what
This was CannTrust's first quarterly update after listing its shares on the New York Stock Exchange (NYSE) last month. The company missed its opportunity to make a good first impression.
Now what
There are two things that investors should especially watch with CannTrust over the coming months that matter more than its Q4 performance.
