Beleaguered Canadian cannabis producer CannTrust has been notified by the New York Stock Exchange that it is once again not compliant with listing rules because of its low stock price.
The NYSE requires the average closing price of common shares to be at least $1 over a consecutive 30 trading-day period.
As of Feb. 25, CannTrust’s 30 trading-day average was $0.99.
The Vaughan, Ontario-based company has six months from the receipt of the to notice to regain compliance.
Under NYSE rules, CannTrust can regain compliance at any time during the six-month period if its common shares have a closing price of at least $1 on the last trading day of any calendar month during the period, “and also have an average closing price of at least $1 over the 30 trading-day period ending on the last trading day of that month or on the last day of the cure period.”
During the period, CannTrust shares will continue to trade on the NYSE.
CannTrust received a similar notification from the New York Stock Exchange in early December, after the 30 trading-day average closing price of its shares dipped below $1.
The stock rebounded in January, trading mostly above the $1 threshold.
However, it trended downward in February, closing at $.67 on Feb. 27.
On Feb. 13, CannTrust said it planned to submit documentation to Health Canada regarding remediation activities at its Niagara facility.
The company said remediation activities at the Vaughan facility are expected to be completed during the second quarter.
The decision to reinstate licenses for the facilities rests with Health Canada.
In a separate default status report Thursday, CannTrust said it “remains in default of its disclosure obligations under securities legislation, has no meaningful revenues and has terminated or laid-off a significant portion of its workforce.”
CannTrust added that it faces “a variety of regulatory investigations, and has significant contingent liabilities in both Canada and the United States, including for potential civil damages and potential criminal, quasi-criminal or administrative penalties and fines, which cannot be reasonably quantified.”
Earlier this month, CannTrust’s board appointed Greg Guyatt CEO.