Just yesterday, on August 13, the stocks of a quantity of major players in the sector – Canopy Development Corp (NYSE: CGC), (TSX: WEED), Cronos Group Inc (NASDAQ: CRON), (TSX: CRON) and Tilray Inc (NASDAQ: TLRY) – lost their positions, continuing the sale final week.
The major elements that previously stimulated stock rallies (sales development, expansion of sales networks, strategic partnerships) are now largely ignored. Meanwhile, the challenge of profitability is becoming increasingly critical, even although the sector has just began building.
The scandal surrounding CannTrust Holdings Inc (NYSE: CTST) (TSX: TRST), which continues to get momentum, is superimposed on this dynamic.
The Canadian Division of Wellness, which controls the cannabis sector, told CannTrust that its Ontario manufacturing facility violated various guidelines.
Shares are trading down 23% to $ three.25 at 9:43 a.m. in Toronto just after a sudden jump of 40% when trading closed on Friday. CannTrust fell twice this year.
CannTrust has currently attempted to cope with the consequences of violations of marijuana cultivation requirements in its greenhouse in Pelham, Ontario, exactly where the organization grew cannabis in unlicensed rooms.
Sandals about the corporation led to the resignation of CEO Peter Aceto. It also led to the cessation of all sales and shipments of CannTrust solutions and a joint investigation by securities regulators and the police. The KPMG LLP auditor also withdrew its reports on the final results of the Canadian cannabis organization for the year and initially quarter.
CannTrust also stated on Monday, August 14, that it had paid out an outstanding mortgage of $ 13.three million. The USA in its Pelham greenhouse in the Meridian Credit Union. It was the only secured debt of the organization.
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