It has been a tough year for the cannabis industry, and as the year comes to a close, the stocks of many of the biggest companies in the industry are going to end the year with substantial losses. During this sector-wide slump, Zenabis stock has suffered as well, and this week Zenabis Global (TSX:ZENA) (OTCPK:ZBISF) got another jolt.
Recalled Namaste Softgels
On Wednesday, it emerged that Health Canada ordered a recall of Zenabis's cannabis gel capsules for incorrect labeling. The recall was issued on Tuesday.
The recalled product in question is Zenabis Global's Namaste softgels, which were labeled as the CBD Light gelcaps version but were found to contain THC. CBD is a permitted wellness compound, but THC is the compound in cannabis that causes the 'high'. Some legal experts stated that the company could face legal action for this oversight.
The news resulted in a selloff in Zenabis stock, which went down by as much a 4% on Wednesday. Furthermore, the stock is down another 1.50% at $0.14 USD in today's trading session.
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Increase in Total Annual Capacity
There was another important development for Zenabis Global earlier this week. The company announced that it has received a licensing amendment for its production facility at Langley, which is a significant development for the company in the larger scheme of things. By way of the amendment, Zenabis will now be able to add as much as 39,400 kilos more of annual capacity to the Langley facility.
The annual production capabilities of the company shot up by as much as 67% on the back of the amendment and come as a major boost for the company as it tries to enter new markets.
What do you think of Zenabis stock after the recent price movement? Share your views in the comment section below.
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