CannTrust stock is trading higher this morning despite CannTrust Holdings (TSX:TRST) (NYSE:CTST) being notified by the New York Stock Exchange that it's no longer in compliance with the NYSE’s listing standard.
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As 2019 winds down to an end, it is fair to say that the year has been a bitter disappointment for the cannabis industry, and many of the companies have seen their stock prices plummet to new lows every other month. One of the companies that has had a pretty tough time is the Canadian cannabis company CannTrust Holdings.
The company announced yesterday that it has been provided with a warning from the New York Stock Exchange about the fact that its stock price has gone below $1.00 a share. $1.00 a share is the minimum threshold for a company to continue trading on the NYSE.
The news about the warning is not great news for CannTrust, but it should be noted that it will continue to trade on the NYSE for the few next months. CannTrust has six months to return to over $1.00, and if it does so, then it will retain its listing in one of the world’s biggest stock exchanges.
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The news comes close on the heels of a warning from the Toronto Stock Exchange that CannTrust stock is going to be delisted if the company did not provide its financial statements by March 25 next year. Even an average closing price of $1.00 over a 30-day period or a closing price of $1.00 at the end of any month will see CannTrust gain compliance again.
The company’s failure to file its financial systems since May 14 this year is a particularly problematic issue. If a company is not compliant with financial filings, then it can forget about continuing to operate on the major stock exchanges.
Reports suggest that the company expects to file its report in Q1 2020. CannTrust has been in all kinds of trouble ever since Health Canada discovered earlier this year that the company had used five unlicensed rooms to cultivate cannabis. The discovery eventually led to the suspension of the company’s license, and all its troubles stem from this.
CannTrust stock is trading higher by 3% at $0.85 USD.
Featured image: Canva
