During the past trading week (July 8 to 12), investors have faced the fallout from a Canadian cannabis producer mistake in growing unlicensed product.
New listing applications from a cannabis accessory company made headlines, and new developments on the upcoming cannabis-infused beverages market caught attention.
Here’s a closer look at some of the biggest news during last week’s trading period.
CannTrust faces ire of investors disappointed in Health Canada ruling
Shares of the Canadian cannabis producer CannTrust Holdings (NYSE:CTST,TSX:TRST) have taken a significant hit during the past trading week. This came following the stunning reveal that the producer had grown marijuana in rooms not yet licensed by Health Canada, the regulatory body overseeing cannabis production.
“The decision to grow in the unlicensed rooms were an error in judgment and we take full accountability,” a CannTrust representative told the Investing News Network (INN) in an email statement. “We are preparing a full report to the regulator, including a root cause analysis and mitigating factors.”
Since the original announcement on Monday (July 8), shares of the firm on the New York Stock Exchange (NYSE) dropped over 30 percent as of 1:00 p.m. EDT on Friday (July 12). Meanwhile, the value of its shares on the Toronto Stock Exchange also declined nearly 30 percent over the past five trading days.
Besides the initial non-compliance notice from Health Canada, now a former CannTrust employee has been revealed as a whistleblower for the company’s unlicensed operations. In addition to that, provincial and European partners of the company have confirmed shipments and potential sales of unregulated product sourced from CannTrust.
On Thursday (July 11), CannTrust halted all sales of cannabis products, including medical items, to its patient base of over 72,000.
The firm has until July 17 to issue an update to Health Canada; after that, the regulatory agency will operate and determine a proper sanction.
“Listing on the NASDAQ Global Select Market … will raise the company’s profile by diversifying our shareholder base and enhancing share liquidity in support of our company’s long-term goals and objectives,” said Nick Kovacevich, chairman and CEO of KushCo.
KushCo’s CFO Jason Vegotsky previously told INN the company had made a priority to secure its senior US listing.
If approved, this would represent a significant step of maturity for the marijuana space in the public markets, as Canadian producers have secured listings on the NASDAQ or the NYSE already.
Multi-state operator Columbia Care (NEO:CCHW,OTC Pink:COLXF) unveiled its plans to open 20 marijuana dispensaries in Florida before the end of year, while also starting construction on a new 4,000 square foot facility.
“Since acquiring our Florida license in 2018, Columbia Care has been quietly assembling its portfolio of dispensaries and building the requisite infrastructure to support the pace of growth that has made the state such a strategic market,” Columbia Care CEO Nicholas Vita said in a press release.
Don’t forget to follow us @INN_Cannabis for real-time news updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Both locations expand access to the state’s widest-ranging inventory of medical cannabis products for Central Florida patients
Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) (“Trulieve” or “the Company”), a leading and top-performing cannabis company based in the United States announced today the opening of two brand-new Central Florida dispensaries. The new Clearwater and Tampa locations mark the Company’s 81 st and 82 nd nationwide, respectively, widening patient access to Florida’s largest and broadest assortment of high-quality medical cannabis products.
Philip Young, CEO and Director of Lobe, stated, “We are honored to welcome Bart to our Advisory Board. His first-hand experience on and off the field are tremendously valuable as we continue our research involving mild traumatic brain injuries and PTSD. These issues are prevalent in contact sports and we believe that athletes will play a prominent role in the continued acceptance of psychedelic medicines as legitimate treatment. We look forward to working with Bart as we seek to forge long-term strategic relationships.”
HempFusion Wellness Submits Novel Foods Dossier to the United Kingdom’s Regulatory Food Safety Agency
HempFusion Wellness Inc. (TSX:CBD.U) (OTCQX:CBDHF) (FWB:8OO) (“HempFusion” or the “Company”), a leading health and wellness CBD company utilizing the power of whole-food hemp nutrition, is pleased to announce that it has submitted its dossier to the United Kingdom’s Regulatory Food Safety Agency (the “FSA”).
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210303005322/en/