CannTrust Tumbles After Report Executives Knew About Illegal Pot Growth 

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CannTrust Tumbles After Report Executives Knew About Illegal Pot Growth 

Investing.com - CannTrust tumbled in midday trade on Wednesday after a report suggested that its executives knew it was growing unlicensed cannabis.

The report by Canada’s Globe and Mail caused shares of CannTrust Holdings (NYSE: CTST ) to slump more than 20%.

The report cites internal emails that show CannTrust Chairman Eric Paul and CEO Peter Aceto knew about the breach seven months before regulators forced the company to halt sales.

The company told the Globe and Mail that it is conducting an investigation into the matter that will be completed soon.

Health Canada issued a non-compliant rating on July 8 for growing marijuana crops in five unlicensed rooms between October and March. Sale of its products are currently on hold and have been pulled from stores.

Other cannabis companies were lower after the news, with Canopy Growth (NYSE: CGC ) falling 0.5%, Aurora Cannabis (NYSE: ACB ) slipping 1.4% and Altria Group (NYSE: MO ) down 0.6%.

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