The Globe and Mail reports in its Wednesday, Sept. 18, edition that Health Canada handed Canntrust Holdings a slim shot at redemption by setting out the steps the company must take to win back government licences that are now suspended. The Globe's Andrew Willis writes that he is dubious there will be comeback.
If management can somehow work its way back into the federal regulator's good books -- no easy task -- it is likely to be a rival cannabis producer that benefits, by swooping in to snap up the company's assets. As the poster child for all that has gone wrong with marijuana legalization, Canntrust's name is mud in the capital markets, and it will struggle to get the cash it needs to survive and rebuild.
Canntrust owns everything needed to become a credible player in cannabis -- except, now, credibility and licences. It has massive greenhouses in the Niagara region, a processing facility in Vaughan, Ont., a portfolio of recreational cannabis brands and more than 70,000 medical marijuana customers. What Canntrust lacks is the ability to do anything with those assets, except perhaps to cough them up to somebody else.
Health Canada formally suspended Canntrust's production licences on Tuesday.
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