Over the past months, CannTrust Holdings (TSX:TRST) (NYSE:CTST) has gone through a lot of trouble, and Canntrust stock tanked by as much as 80% throughout 2019. However, January proved to be a source of some succor, as the stock managed to gain 15%. The reason behind the gains is still unclear, as nothing's been released by the company in last month.
Nevertheless, CTST stock has tanked about 22% so far in February.
Regulatory Issues
Due to violating Health Canada regulations, CannTrust’s cultivation license was suspended. The company’s management has, however, indicated that it has met many of Health Canada's directives to regain its license, and so reinstatement could eventually happen.
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Naturally, the biggest issue hovering over CannTrust stock is whether or not the suspension will be lifted. If the license is not reinstated, then the company doesn’t have a business. Management has stated that it expects to complete all the necessary steps for reinstatement by the end of the first quarter of 2020.
That’s only part of the problem, though. The massive fall in CannTrust stock price means the potential of being delisted from the New York Stock Exchange. The Toronto Stock Exchange has also stated that the company is at risk of being delisted on its exchange.
CannTrust Holdings is expected to submit all the necessary papers to the TSX within the deadline, and if this happens, CannTrust stock would be out of danger of being delisted. These are important points to consider when reviewing CannTrust stock.
On a positive note, the company does have notable production capabilities.
If CannTrust is able to get its license back, CannTrust stock could have the potential to make a comeback. However, if things continue in this matter, those chances remain slim.
What do you think?
Featured image: Canva
