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CannTrust News: Why CTST Stock Is Plunging Again Today

Health Canada isn't happy with CTST

CannTrust news for Monday about one of its facilities breaking regulations has CTST stock falling hard.

CannTrust News: Why CTST Stock Is Plunging Again Today
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The trouble for CannTrust (NYSE:CTST) comes after an audit of its Vaughan, Ontario manufacturing facility by Health Canada. The government agency pointed out several issues with the location that have it not meeting its required standards.

The CannTrust news about the changes notes that one issue was the converting of five rooms into storage areas. This was done without the permission of Health Canada. The company also created two new areas without permission. One of these was being used for storing marijuana.

There were several other concerns that Health Canada has mentioned in the CannTrust news release. Among these are a lack of proper security controls, quality assurance investigations and controls not being up to snuff and standard operating procedures that don’t follow regulations.

The final issue that Health Canada has with the way the CannTrust location was operating was its storing of documents. Improper storage methods meant that the agency was unable to complete its audit in a timely manner.

This isn’t the first time that negative CannTrust news about its Vaughan, Ontario facility has hit CTSt stock. It announced initial concerns from Health Canada back in July and halted sales of cannabis at the time. It still isn’t selling cannabis products and didn’t say when it would plan to start again.

CTST stock was down 26% as of noon Monday and is down 38% since the start of the year.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

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