Cannabis products by
CannTrust Holdings Inc. (TSX:TRST) have been removed from shelves and taken offline from the Ontario Cannabis Store, after Health Canada finishes its investigation involving the licensed producer, which has been deemed
non-compliant.
TRST stock fell sharply, around 16%, down $1.06, at $5.40 on the Toronto Stock Exchange after falling as low at $5.03 just after the market opened.
Now the company is under investigation from
The Schall Law Firm,
Bronstein, Gewirtz & Grossman and
Kehoe Law Firm, on behalf of shareholders, as well as
Block & Leviton, for possible violations of federal securities laws.
Health Canada reported this week that during an inspection, it found that CannTrust was producing cannabis at its Pelham, Ontario greenhouse in rooms that had not yet been approved, and that employees provided “false and misleading information” to inspectors. Roughly 5,200 kg of dried cannabis grown in those rooms has been placed on an inventory hold. The company also placed a voluntary hold of about 7,500 kg of dried cannabis equivalent also produced in unlicensed rooms.