Cannabis Watch: Cannabis stocks dragged down by CannTrust’s losses after cannabis seizure

Cannabis stocks fell across the board Tuesday, led by CannTrust Holdings Inc. in its continued response to the news that the Canadian regulator has seized its cannabis after finding it was growing in unlicensed rooms.

BMO Capital Markets became the latest house to downgrade the stock, lowering it to market perform from outperform.

“It is unclear how the company would have commenced cultivation in unlicensed rooms and we are surprised by this development and the inability of CannTrust’s internal operational controls to prevent this,” analysts Tamy Chen and Peter Sklar wrote in a note to clients.

What’s more, “it is unclear what Health Canada could decide with respect to the status of the affected inventory and finished products that were sold to the market,” the analysts wrote.

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