Shares of CannTrust Holdings Inc. dropped 22 per cent on Wednesday, a day after The Globe and Mail reported both CannTrust’s chairman and chief executive officer were informed about cannabis being grown in parts of a facility that had not been licensed seven months before Health Canada uncovered the regulatory breach.
Matt Maurer, the vice-chairman of Toronto-based Torkin Manes LLP’s Cannabis Law Group, said he’s received a large number of calls from U.S. financial institutions over the past several days inquiring about the situation at CannTrust.
“It seems like these calls are more like, ‘should we be selling and should we be shorting?’ versus, ‘where should we be looking to buy at the low end?’ ” Mr. Maurer said, referring to the practice of short-selling, where investors bet on share price declines.
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