Cannabis stocks dropped Wednesday, days before the FDA meets to discuss how to regulate cannabis and CBD. Among the stocks swimming in the red today is CannTrust Holdings (TSX:TRST) (NYSE:CTST). TRST stock is down nearly 5% at the time of writing.
Here's what's going on.
TRST Stock: The Latest
Earlier this week, CannTrust Holdings, a licensed producer of recreational and medical cannabis, said it has partnered with Well.ca to launch a cannabis education portal.
As of now, the portal is available through Well.ca to Ontario residents only. However, CannTrust, which bases itself in Ontario, said additional provinces will have the resource soon as well.
At its core, Well.ca will act as a resource and education center for those interested in learning about medical cannabis. Considering CannTrust Holdings services over 70,000 medical cannabis patients, the traction Well.ca is going to receive through this partnership will likely be significant.
"Our goal is that every Canadian has access to credible, balanced information and advice about medical cannabis."
But just because the portal is forecasted to do well (it also means CannTrust is out in the market establishing relationships with other companies), doesn't mean the market took the news well. Or maybe it did; maybe TRST's drop has to do with the majority of cannabis stocks falling Wednesday. Either way, TRST stock is down fairly significantly today, a couple of days after the news came out.
According to Yahoo Finance, as of 12:07 PM EDT, TRST stock is trading at $7.63 on the TSX, which puts it down 3.90%.
Meanwhile, on the NYSE, CannTrust stock is trading at $5.63, putting CTST down 4.25%.
The CannTrust-Well.ca partnership is a good thing. In an industry that's booming, more education is needed. And yet, TRST stock is tumbling. Then again, Wednesday's trading results could be due to the weakness in the broader markets.
What do you think, though? Let us know in the comments below!
Featured image: Canva