RE:RE:CannTrust stops selling all of its cannabisCannTrust must begin planting its crop in BC greenhouses no later than Aug 1st and is currently awaiting Federal license approval to do so. How likely do you think approval will be in light of its current issue with Health Canada?
No crop approval combined with additional legal expenses as a result of the numerous class actions might prove too much for the company given current market sentiment toward profitability and CannTrusts expected return to profitability by the end of 2019. It will either go under or be forced to merge with a competitor at a sginficant discount. If the Feds do grant approval to plant in the next couple of weeks, it will signal a positive outcome for CannTrust and it may survive this ordeal.
TRST current market cap is $495 million and declining. Combined with the fact it is a low cost producer with fairly descent revenues streams and is licensed in all 10 provinces would be attractive to any suitor.
The next two weeks will tell the story.