Cannabis Stock Whacked for 27 Percent Drop as Bubble Finally Bursts

For investors in cannabis stocks who believe that we are now in the Wild West where anything goes thanks to legalization, they should think again. That’s especially true for investors in Canadian cannabis stocks.

CannTrust shares are down sharply. | Source: Yahoo Finance

Canadian Cannabis Cops Clock Company Compliance

Health Canada has slapped CannTrust Holdings with a notice of non-compliance, which has resulted in a double-digit percentage downdraft in CannTrust stock.

CannTrust said:

“The non-compliant rating is based on observations by the regulator regarding the growing of cannabis in five unlicensed rooms and inaccurate information provided to the regulator by CannTrust employees.”

Health Canada has put a hold on over 5000 kg of dried cannabis that was produced by CannTrust in an unlicensed growing room. CannTrust claims that the growing occurred in rooms whose applications were pending.


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