We’ve been talking for weeks about consolidation as the road forward for the battered Big Cannabis group. This took a major step in that direction.
CannTrust Holdings Inc., once traded under the symbol CTST, has been under the shadow of a potential delisting since March 31. That order was finalized in Toronto on April 13.
CTST had been a zombie stock for months. Losing it actually gives most of the names left on my screen room to rally.
But there’s still a lot of work to do. Watching Aurora Cannabis Inc. (NYSE:ACB) this week makes me think we’ll need to see a much bigger implosion before shareholders in other companies will get satisfaction.
Consider: CTST was halted with the stock at a lowly $0.64, having been cut in half over the trailing year. ACB is only $0.69 now.
A lot of great companies trade at low price points for a good reason. But ACB relies on the public market for capital. If it doesn’t rally fast, it’s in trouble.
We won’t cheer, but we won’t cry either. I am eager for a little sunlight in this space. If it means the second-biggest grower giving its business to better-capitalized rivals, that’s progress.