Things have hit a new low for shareholders in CannTrust Holdings Inc. (TSX: TRST and NYSE: CTST).
On Friday, the embattled Canadian producer announced it had received written notification from the New York Stock Exchange that it’s no longer in compliance with the NYSE’s continued listing standard rules.
CannTrust’s current valuation — it sits now at US$0.62 per share — has fallen below the required average closing price of at least US$1.00 per share over a consecutive 30 trading-day period.
According to the company, as of Feb. 25, 2020, the 30 trading-day average closing price of its common shares was US$0.99
In accordance with the NYSE’s rules, CannTrust said it has six months from the receipt of the notice, on Feb. 27, to regain compliance. Within that time, the company’s common shares will continue to be listed and trade on the NYSE.
Under NYSE rules, CannTrust says it can regain compliance at any time during the six-month period if its common shares have a closing price of at least US $1.00 on the last trading day of any calendar month during the period, and also have an average closing price of at least US$1.00 over the 30 trading-day period ending on the last trading day of that month or on the last day of the cure period.
Among its growing list of woes, the once leading cannabis producer was the subject of an unlicensed growing room scandal, was discovered to be growing with illicit market seeds, had to destroy $77 million dollars worth of cannabis and had its sales licence suspended by Health Canada.
CannTrust has recently stated that it’s trying to get production licences with Health Canada reinstated, and also that it’s expecting an oncoming wave of litigation against it.
Top image courtesy of CannTrust