September 18, 2019 / 10:42 AM / 2 months ago

BUZZ-Pot grower CannTrust slides after regulator suspends licence

(Updates)

** U.S.-listed shares of Canadian pot grower CannTrust Holdings Inc down 2.3% at $0.03 in pre-market, set to open at record low

** Regulator Health Canada suspends company’s licence to produce and sell cannabis

** Last month, the sale of over half of CannTrust’s stock of marijuana and around a quarter of its plants had been suspended following the discovery of unlicenced cultivation at its facilities

** Brokerage Canaccord Genuity cuts PT on co’s Canada-listed shares to C$2 from C$2.50, citing significant uncertainty in co’s prospects

** Since Health Canada has allowed CannTrust to continue cultivation of existing plants, there’s a slight possibility the co will be able to sell its products at some point in the future- Canaccord

** RBC Capital Markets is not surprised by the licence suspension; says with ongoing returns and operations at a standstill, co could face meaningful cash burn over the coming months

** CannTrust had delayed its Q2 results last month, awaiting a decision from Health Canada

** Up to Tuesday’s close, CTST down ~86% this year and TRST ~74% (Reporting by Bharath Manjesh and Arunima Kumar in Bengaluru)

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