Shares of Canadian marijuana growing CannTrust Holdings Inc (TSX:TRST) fell more than 22% Monday after a report issued by Health Canada stated one of the company’s greenhouses in Ontario was found to be in breach of compliance regulations.
According to a statement issued by the company, “CannTrust has accepted Health Canada’s non-compliance finding and has taken actions to ensure current and future compliance.”
The company was found to be growing cannabis in five unlicensed rooms at its greenhouse facility in Pelham, Ont., between October 2018 and March of this year. This timeframe covers the period when the company had pending applications with Health Canada to use the space for growing operations. Licences for these rooms were eventually issued in April.
Shares of the cannabis grower hit $5.01 at the close today, the lowest it has been in more than a year and a half.
