New York Stock Exchange Warns CannTrust Of Possible Delisting

(RTTNews) - CannTrust Holdings Inc. said that the New York Stock Exchange or NYSE notified the embattled Canada-based cannabis company that it is no longer in compliance with the NYSE's continued listing standard rules as the company's per share trading price has fallen below the stock exchange's share price rule.

The NYSE requires the average closing price of a listed company's common shares to be at least $1 per share over a consecutive 30 trading-day period. As of December 9, 2019, the 30 trading-day average closing price of CannTrust's common shares was only $0.97.

CannTrust now has six months to regain compliance. In the meantime, the company's common shares will continue to be listed and trade on the NYSE as usual.

In late November, the Toronto Stock Exchange or TSX also said it would delist CannTrust's shares if the company is unable to file relevant financial statements by March 25, 2020.

The TSX said that it is reviewing CannTrust's eligibility for continued listing on the stock exchange as the company has not satisfied certain disclosure requirements.

This includes filing of CannTrust's restated audited financial statements for the year ended December 31, 2018, its restated interim financial statements for the first quarter of 2019, and its interim financial statements for the second as well as third quarters of 2019 along with the related management's discussion and analysis for the corresponding periods.

The TSX warned that if CannTrust is unable to file these financial statements by the March 25 deadline, the company's shares will be delisted after 30 days.

In September, Health Canada suspended CannTrust's license to produce and sell recreational and medical cannabis in Canada after the regulator found the company to be non-compliant with regulations for growing cannabis in unlicensed greenhouse rooms and also for providing inaccurate information to the regulator.