CannTrust stock is trading down on Monday immediately after John Kaden, a member of CannTrust Holdings’ (TSX:TRST) (NYSE:CTST) board of directors, stepped down from his position as Director as the organization remains embroiled in licensing concerns.
A Year of Scandal and Controversy
CannTrust Holdings has been probably 1 of the most controversial firms in the pot marketplace throughout the very first year of legalization. News broke in July that the organization was expanding cannabis in unlicensed rooms involving October 2018 and July 2019, with additional reports saying that not only did senior officials at the organization know about the breach of regulations but that they essentially endorsed it. CannTrust stock, along with pot stocks across the board, was sent tumbling as a outcome.
Following the dismissal of the company’s CEO and Chairman, Wellness Canada released a complete list of violations in August, and it did not make for an enjoyable study for investors. The building of two new locations without having prior approval of Wellness Canada, insufficient safety controls and top quality assurance, operating procedures that did not meet regulatory specifications, and a lack of sufficient bookkeeping have been just some of the breaches CannTrust engaged in, according to Wellness Canada.
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CannTrust stock tanked drastically final month immediately after it was revealed that the organization applied seeds acquired from the black marketplace to cultivate solution that it sooner or later packaged and sold on the legal marketplace. That breach was the final straw for Wellness Canada, which suspended the company’s cultivation and retail licenses.
CannTrust Stock Trades Close to Year-Low
Mr. Kaden had served on the CannTrust board from October 2018, all through the entirety of this regulatory scandal, and was a portion of the specific committee that investigated the causes of the company’s non-compliance with Wellness Canada regulations. He stated that he is stepping away from CannTrust Holdings with remediation now nicely underway, in order to concentrate on his other part as managing companion and chief investment officer of Navy Capital Green Management LLC, a cannabis investment firm.
CannTrust stock is at the moment trading at $1.58, down 88% from a March peak of $13.45.
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