Any person wishing to support or oppose the relief sought at the approval hearing may serve court materials on the service list setting out their basis for their support or opposition and/or attend the hearing. After considering the court materials filed by the Proposal Trustee, CTH and any other person, and hearing the submissions of those present at the hearing , the Court may approve the Proposal and other relief sought by CTH. If approved by the Court, CTH would then proceed to implement the Proposal. “Obviously the market has changed and we’ve been out of the market for some time, but we’re going to continue to work hard to educate and inform our customers and patients about our products,” he said. It is also promising its full line of medical products will return in the near future and that it will enter the nearly year-old cannabis 2.0 market that has focused on edibles, vapes and topicals. The Company has established a blackout on trading by directors, officers and other insiders of the Company, and intends to continue the blackout until the Q2 Filings and any Restated Financials, if required, have been filed.
Then again, it took more than two months just for Health Canada to come to the decision to officially suspend CannTrust’s licenses in the first place. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. CannTrust shares were down five cents, or 4.46 per cent, at $1.07 in midday trading on The Toronto Stock Exchange. Troubled cannabis company CannTrust Holdings Inc. says the Toronto Stock Exchange is reviewing the company’s eligibility for continued listing on the exchange. If a regulator opens an inquiry or shuts down your business, hire an independent third party that has the expertise and knowledge to identify how, when and why the incident occurred. An independent director or committee should be in charge of the investigation and the final work product.
We will not release or resell your information to third parties without your permission. Phoena continues to explore strategic options to generate liquidity for its shareholders. The Board’s deliberations are ongoing and progressing but there can be no assurance that Phoena will ultimately be successful. In these circumstances, CTH believes it is in the best interests of its stakeholders to make a proposal to its creditors under the BIA. He believes consumers will grow to love CannTrust again and that being late to cannabis 2.0 won’t be a downfall. While pot companies saw a surge in sales in the early days of the pandemic, executives now say those spikes are dissipating and they’re having to get creative to reach first-time or casual cannabis users.
I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. If you enjoyed this, consider Ian’s Insider Corner to enjoy access to initiation reports for all the new stocks that we buy. Membership also includes an active chat room, weekly updates, and my responses to your questions. This should give you a sign that something is amiss, and a clue as to why CTST stock has managed to perform even worse than its other marijuana peers? CannTrust had its Health Canada license suspended after a scandal. The marijuana producers have created far more supply than the market has demanded so far.
Policy & Public Interest
The producer is once again licensed in both medical and recreational markets. The CannTrust case is the largest scandal in the history of Candian cannabis, shaking the confidence in the legal system for many patients and cultivators alike. It’s still unclear how much cannabis from the unlicensed grow rooms was dispensed to Canada’s registered medical patients, the recreational market, or even exported.
- In the wake of its disclosure of illicit cultivation, the company fired its CEO «with cause» and asked its chairman to resign after the board discovered new information during an internal investigation.
- On the other hand, some big-name marijuana stocks like Tilray are also down 90% from their peaks, and even the leaders like Canopy and Aurora are down 70%.
- Without the mea culpa, a company’s credibility is questioned from all sides including shareholders, creditors, vendors, and regulators.
The announcement indicates a comeback for CannTrust in the wake of a tumultuous period starting in the summer of 2019 when a former company employee alleged that CannTrust was growing thousands of kilograms of cannabis in unlicensed rooms at its Fenwick ON grow facility. It intends to either apply to the Ontario Securities Commission for an order revoking the OSC’s “failure-to-file” cease-trade order dated April 13, 2020 or take steps to obtain a stock exchange listing for the common shares of CannTrust Equity. On Friday, Feb. 14, prior to the opening bell, CannTrust announced a number of corporate updates, which included its remediation plan. The company announced plans to file documentation on Feb. 14 with Health Canada to reinstate its cultivation and sales licenses at Niagara, with its filing to do the same at the much smaller Vaughan facility expected during the second quarter.
The board must monitor high-risk areas such as financial reporting and regulatory compliance for anomalies or other warning signs. By including independent board members, a company can demonstrate to investors that it values a fresh eye on the company to ensure that it has adequate controls and a culture of compliance. Regulatory approval is needed to stay in business and to continue growing. Losing credibility with a regulator has long term implications for creditors and shareholders. Once a regulator questions your credibility, this provides shareholders with the right to question all of a company’s disclosures. Synr.g is a tastemaker, with a cannabis collection focused on flavourful sensory experiences.
Financial Services & Investing Overview
It intends to file restated financials for previous periods by the end of this year. You have Canadian cannabis producer CannTrust , which has fallen from $10 to $1 this what should you do after a relapse year. On the other hand, some big-name marijuana stocks like Tilray are also down 90% from their peaks, and even the leaders like Canopy and Aurora are down 70%.
Phoena creates cannabis products that meet the diverse needs of patients and consumers, promoting positivity, supporting creativity, and inspiring confidence. So far, CannTrust’s strategy is to focus first on Ontario, Alberta and British Columbia. Once CannTrust has established a consistent supply of cannabis in those provinces, it will expand to other markets and introduce new products in 2021. The cases were filed after Health Canada discovered illicit cultivation at CannTrust’s Pelham, Ont., greenhouse and seized cannabis from unlicensed rooms in the summer of 2019.
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The bankruptcy filing was the end result of a downward spiral that started in July 2019 when regulators found unlicensed grow rooms and that CannTrust provided them with false and misleading information. Within five days, CannTrust’s stock dropped 48% and the company lost over $174 million in market value. Shareholders quickly filed a class-action lawsuit on July 10, 2019 alleging that the company failed to disclose to investors that it was growing cannabis without regulatory approval and that it did not comply with regulatory requirements. Safe harbor laws, and such statements are based upon CannTrust’s current internal expectations, estimates, projections, assumptions and beliefs and views of future events. The New York Stock Exchange and the Toronto Stock Exchange stopped trading the security on the morning of March 31, 2020 when the company announced that it filed for bankruptcy protection and looks to be throwing in the towel as a public company. CannTrust may no longer try to fix its public disclosure statements by filing additional reports as required under the Canadian and US securities laws.
CannTrust is committed to research and innovation, investing in developing technologies for new products in the medical, recreational, and wellness markets, while contributing to the growing body of evidence-based research regarding the use and efficacy of cannabis. As the company plainly states in its press release, alcoholism treatment & alcohol rehab there are no assurances that Health Canada will reinstate its licenses. And, should Health Canada choose to do so, there’s no timeline of when that’ll happen, or what conditions might be attached. But if CannTrust is able to regain its growing and selling licenses at Niagara, this stock might be a bad-news buy.
Heavy Industry & Manufacturing
The company’s shares surged briefly on Oct. 15 when it announced plans to destroy $77 million worth of cannabis plants and inventory as part of its efforts to comply with Health Canada regulations. CannTrust says it is working with its independent auditor and expects to which mental disorder is most commonly comorbid with alcoholism file the financial statements and related disclosure before the deadline. /PRNewswire/ – CannTrust Holdings Inc. («CannTrust» or the «Company») today announced it is returning to the Canadian cannabis marketplace with two of its recreational brands LiivTM and Synr.gTM.
Even At $1/Share, CannTrust Is Still A Bad Bet
Generally; and, the ability of CannTrust to implement its business strategies. The Company intends to file on a copy of the definitive Term Sheet relating to the Credit Facility, redacted to omit certain commercially sensitive information that has been sealed by order of the Court. It indicates a way to close an interaction, or dismiss a notification. I have no business relationship with any company whose stock is mentioned in this article. Data by YChartsEven against that dismal backdrop, however, CannTrust has managed to lead the pack to the downside, with CTST stock down a stunning 89% since the beginning of March at a time when other sector peers are off closer to 50-60%.
Our greenhouse produces Grade A cannabis flower, with products currently being sold in dried flower, pre-roll, vape, oil drops and capsule formats. Founded in 2013, our continued success in the medical cannabis market and subsequent expansion into the recreational business, led to us being named Licensed Producer of the Year at the Canadian Cannabis Awards 2018. Our greenhouse produces Grade A cannabis flower, which is currently sold in dried flower, oil drops and capsule formats. While we’ve witnessed plenty of instances where cannabis stocks have lost investor’s trust over the past year and change, nothing has been more egregious than what CannTrust did. In July 2019, the company announced that it had grown marijuana illegally in five unlicensed rooms at its flagship Niagara facility for a period of six months (Oct. 2018 – March 2019). Additional investigations also showed that now-former CEO Peter Aceto knew of this illicit grow operation and did nothing to stop it.
Founded in 2013, CannTrust faced class-action lawsuits from investors who said they lost millions of dollars after the company allegedly made misrepresentations about having necessary licences for growing cannabis. “This marks the end of one long journey and the beginning of a new, exciting era for CannTrust. Today we can take our first step forward, focusing our attention on the bright future that lies ahead, with our new partners, Kenzoll,” stated CannTrust CEO Greg Guyatt in a news release. CannTrust retains the remaining 10 per cent of the common shares of CannTrust Equity. Marshall Fields International B.V., a subsidiary of Kenzoll B.V., has invested $11.2 million to acquire a 90 per cent equity interest in CannTrust Equity and provided a $5.5 million secured credit facility. Getting into such products after competitors allows CannTrust to quickly adjust to new demands in the market and learn from mistakes other cannabis companies made, he said.
Those aforementioned supply issues throughout most of Canada haven’t allowed pot stocks to reach anywhere near as many consumers as they’d like. Long story short, none of Canada’s growers have run away from the field in the market share department, providing plenty of opportunity for CannTrust to slide right back in as a major supplier. Remember, this is one of only a small number of growers to have signed supply deals with every province.