CannTrust stock is showing signs of relief this morning after CannTrust Holdings (TSX:TRST) (NYSE:CTST) said that it intends to submit documents to regulators today, February 14, related to its Niagara, Ontario facility.
Major Development
Canadian cannabis producer CannTrust Holdings has been working to get back its license from Health Canada after it was suspended last year, and progress seems to be coming along. In a development that seems to have come as a boost for many of the company’s shareholders, the company announced that it is going to submit key documents to Health Canada on February 14.
The documents in question detail the corrective steps that CannTrust has taken and makes the case for the reinstatement of the company’s production license. It is a significant development for CannTrust Holdings and has put CannTrust stock in focus.
However, that is not all. The company also announced that Greg Guyatt has been appointed as its new Chief Executive Officer, a move that will hopefully end the uncertainty with regards to CannTrust’s leadership.
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Additionally, CannTrust announced that it has got an extension from the New York Stock Exchange until April 15 to get its stock back under control so that it can remain listed on the exchange. It is quite clear that a crucial period is coming up for CannTrust, and experts will, no doubt, be watching the developments closely over the coming weeks.
CannTrust stock is trading higher by 10% at C$1.17.
While the news regarding the New York Stock Exchange has come as a relief for the company, it should be noted that CannTrust Holdings is also at risk of being delisted from the Toronto Stock Exchange. That being said, the company has reiterated that it is going to submit the necessary paperwork on time in order to avoid being delisted.
CannTrust previously announced that it was going to complete all the remediation activities by the end of Q1 2020. On that front, the company is ahead of schedule. These factors certainly make CannTrust stock one to watch in the coming months.
What do you think?
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