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by Stockwatch Business Reporter
The S&P/TSX Cannabis Index lost 3.21 points to 130.91 Tuesday, while the Canadian Securities Exchange Composite Index fell 5.05 points to 275.03. After requesting a halt before the open this morning, Canntrust Holdings Inc. (TRST: $0.91) announced that it has obtained protection under the Companies' Creditors Arrangement Act (Canada) through an order from the Ontario Superior Court of Justice (Commercial List). The CCAA protection means that all creditors of Canntrust will be stayed from enforcing their claims. The protection has an initial period of 10 days but it may be extended thereafter.
Given that Canntrust has little debt and $145-million in cash (as of March 20), the CCAA protection is likely in response to lawsuits that the company is facing. The lawsuits stem from the loss in shareholder value after Canntrust was caught illegally growing marijuana. The illegal growing caused the company to be stripped of its cultivation and sales licences, sending Canntrust's shares tumbling to 91 cents from $6.46.
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