CannTrust stock continues to trade weakly this week after CannTrust Holdings (TSX:TRST) (NYSE:CTST) got a notice from the New York Stock Exchange on Friday.
Canadian cannabis producer CannTrust has been in all sorts of trouble over the past months, and last week, the company got another blow. Last Friday, it emerged that CannTrust has been sent another notice by the New York Stock Exchange. The notice informed the company that its stock is once again non-compliant with the listing rules of the exchange.
According to the listing rules, any share must have an average closing price of $1.00 over a course of 30 days. On February 25, CannTrust stock was trading at $0.99 a share. The company has six months, within which it needs to become compliant again.
If CannTrust stock can record an average stock price of $1.00 over a 30-day period, then the company will be compliant again. CannTrust Holdings was handed a similar notification back in December 2019, but it managed to regain compliance after the stock had a mini rally in January.
CannTrust stock is now down by 1.15% at C$0.86.
The company’s cultivation license remains suspended for having produced cannabis in unlicensed rooms in its facility. The reinstatement of the license is fully dependent on the cannabis regulator Health Canada.
At this point in time, CannTrust stock has been beaten down considerably, and all eyes will likely be on the financial statements relating to the company’s first-quarter performance. CannTrust Holdings now has a new management team in place, and the disclosure of the financial statements is its first important task.
Experts believe that even if the company does manage to regain its license, the after-effects of the suspension are likely to be felt by CannTrust stock for the rest of the year.
Featured image: Canva