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by Stockwatch Business Reporter
The Canadian Securities Exchange Composite Index lost 2.21 points to 542.68 Monday. Canntrust Holdings Inc. (TRST) dropped 29 cents to $1.70 on 4.23 million shares as Health Canada made its long-awaited decision to suspend Canntrust's licence. The suspension is the result of Canntrust being caught for illegally growing marijuana at its Pelham, Ont., facility. Since news of the scandal broke on July 8, Canntrust has plummeted to today's closing price of $1.70 from $6.46. In the notice that Health Canada sent to Canntrust, the regulatory agency classifies it as a "partial suspension" of the company's cultivation licence and a "full suspension" of its processing, medical sales, cannabis drugs and research licences. The partial suspension of Canntrust's growing operations means the company will be allowed to cultivate existing product, and then dry, trim and mill the marijuana. It will not be able to grow any new lots or batches of cannabis. Health Canada says in the notice that it will reinstate Canntrust's licences if the reasons for the suspension no longer exist. It could have been worse. If Health Canada wanted to really send a stern message to the industry, it could have permanently revoked Canntrust's licences.
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