It certainly is a tale of woe. Unlicensed overseas shipments and to top it off unlicensed cultivation for six months at its facility in Pelham, Ontario. Looks like they may have to change their name to “BuildupTrust”
MJ Biz report
Beleaguered cannabis grower CannTrust shipped some unlicensed medical marijuana overseas, the Ontario company told Marijuana Business Daily, adding an international dimension to the Canadian company’s regulatory woes.
In a statement to MJBizDaily, the Danish Medicines Agency said three batches are affected, but none have been sold on the Danish market.
The overseas shipments of unlicensed product raise questions about CannTrust’s own quality controls and Health Canada’s overall capability to monitor medical cannabis exports, according to experts.
Full story below
Over at Market Watch it’s stock diving time and even talk of jailtime
Cannabis stocks fell across the board Tuesday, led by CannTrust Holdings Inc. in its continued response to the news that the Canadian regulator has seized its cannabis after finding it was growing in unlicensed rooms.
BMO Capital Markets became the latest house to downgrade the stock, lowering it to market perform from outperform.
“It is unclear how the company would have commenced cultivation in unlicensed rooms and we are surprised by this development and the inability of CannTrust’s internal operational controls to prevent this,” analysts Tamy Chen and Peter Sklar wrote in a note to clients.
What’s more, “it is unclear what Health Canada could decide with respect to the status of the affected inventory and finished products that were sold to the market,” the analysts wrote.
Bank of America Merrill Lynch downgraded the stock CTST, -12.22%TRST, -12.90% on Monday, while others slashed share-price targets. CannTrust shares fell another 7%, bringing their week-to-date losses to more than 28%.
Chief Executive Peter Aceto told the Canadian press that some of the illicit cannabis had been shipped to provinces across the country. Investment and research firm Harvest Moon said Monday that if any of that illicit product was exported to the company’s overseas markets, it would be an indictable crime that would come with a jail sentence.