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by Stockwatch Business Reporter
The Canadian Securities Exchange Composite Index lost 11.88 points to 559.60 Monday. Canntrust Holdings Inc. (TRST) plummeted $1.17 to $3.04 on 10.5 million shares after the stock skyrocketed in the last hour of trading on Friday. It gave back almost all of Friday's gains, it having opened at $2.99 on Friday. Many now believe that Friday's late increase was a result of an exchange-traded fund rebalancing. Equity Guru reported that ETFMG Alternative Harvest Fund, a cannabis ETF, performed its quarterly rebalance in the last hour of trading on Friday and significantly increased its position in Canntrust. The last hour was when Canntrust went on a tear.
As this news circulated, more bad news for Canntrust was revealed. The company's Vaughan, Ont., facility was ruled to be non-compliant by Health Canada. This is not the facility in which the illegal growing happened; that was the Pelham, Ont., facility. The Pelham facility was ruled to be non-complaint last month. Health Canada said Canntrust used rooms in the Vaughan facility for storage before receiving the regulator's approval, constructed areas without approval and has insufficient security controls at the facility, amongst other problems. Canntrust reiterated that it does not know when the Health Canada decision on its potential penalty, regarding the Pelham's facility illegal marijuana growing, will come.
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