CannTrust Breach Will Damage Legal Pot Market: Cannabis Weekly
- Shortages, high prices likely to worsen after sales halted
- ‘A massive issue that’s actually really easy to fix:’ Kopf
A worker stands outside a greenhouse at the CannTrust Holdings Inc. cannabis production facility in Fenwick, Ontario, Canada.
Photographer: Galit Rodan/Bloomberg
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Investors made it clear last week that they no longer trust CannTrust Holdings Inc. The company’s regulatory breach may further erode consumers’ trust in the legal cannabis market as well.
The company’s stock plunged 48% over the five trading days since regulators found it grew pot in unlicensed rooms and provided “false and misleading” information to inspectors, erasing C$228 million ($174 million) in market value. CannTrust halted all sales and shipments of its products, and the Canadian government may suspend or even cancel its license in response.