CannTrust stock is attempting to recover this morning after the recent slump as CannTrust Holdings (TSX:TRST) (NYSE:CTST) has hired Greenhill & Co to assist in a review of strategic alternatives, including an outright sale.
Surprising News
CannTrust Holdings was the newest cannabis producer on the block when it secured its cultivation license from Health Canada back in April. However, in July, the company plunged into chaos as it was found to have cultivated cannabis in unlicensed rooms in the months prior to April.
CannTrust had to recall some of its products, and it became the subject of a Health Canada investigation. Last week, its Chief Executive Officer was fired after it was found that he had been aware of the unlicensed cultivation.
Today, it emerged that CannTrust is now actively looking to sell the company to a buyer as it figures out how to handle the situation. Would a sale be enough to help CannTrust stock though?
According to reports, the company has employed the services of Greenhill & Co to look for a buyer. Considering the sort of damage that has been done to the stock over the past weeks, however, it remains to be seen how it all pans out.
The plunging CannTrust stock price has wiped out as much as $500 million CAD from the company’s value so far. However, it needs to be pointed out that the sale of the company is only one of the many options that are currently being explored. CannTrust has created a special committee of its board members, who are being advised by Greenhill on the possible options, one of which includes a CannTrust sale.
At the time of writing, CannTrust stock has fallen by as much as 8% to $2.32. On the Canadian side, TRST stock is down 7% at $3.03.
In a statement, CannTrust Holdings revealed that the options being considered include a strategic investment, a merger with another company, and, finally, an outright sale of the company.
What do you think of CannTrust stock after today's interesting development? Do you think big companies would be interested in CannTrust?
Featured image: Canva
