Maligned Canadian cannabis producer CannTrust Holdings (NYSE:CTST,TSX:TRST) is facing a class-action lawsuit update.

On Monday (February 3), Henein Hutchison, speaking for a group of Ontario-based law firms, issued a statement claiming that the Ontario Superior Court of Justice has confirmed that the group can carry on with a proposed securities class action targeting the marijuana company.


The legal action is tied to CannTrust’s improper cannabis growing operations, which were discovered by regulators in July 2019. The misstep led to an eventual license suspension for the company and the damage to its reputation caused to the larger Canadian cannabis market to take a hit.

 

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Shares of CannTrust fell in both New York and Toronto during Monday’s session. The company finished the first trading day of the week priced at US$1.04 and C$1.37.

In the pre-market trading portion of Tuesday (February 4), the company was already down an additional almost 4 percent on the New York Stock Exchange. However, just after the official start of the session, it bounced back with a 2.92 percent increase in Toronto and a 1.44 percent marginal jump in New York.

Since the original illegitimate growing discovery, which brought the dismissal of the firm’s former CEO and of its co-founder, shares of CannTrust have dropped in value dramatically by over 70 percent in both New York and Toronto.

stock chart for CannTrust Holdings

“Cases like this show the power of class actions to bring access to justice to individuals who place their savings at risk in the stock markets,” Dimitri Lascaris, a lawyer working within the group representing the investors raising the suit, said in a statement.

Marie Henein, another lawyer working on the lawsuit, said the case will be brought in front of the courts “at the earliest opportunity.”

In an emailed statement, a CannTrust spokesperson declined to comment for this story.

In its most recent mandated bi-weekly update to investors, CannTrust made no mention of the progress for the class-action suit. The company signaled it still has a cash balance of nearly C$175 million.

The legal action comes from CannTrust investors who bought shares of the company between June 1, 2018, and September 17, 2019, according to the parameters of the suit, in addition to investors who participated in a prospectus offering from the company in May 2019.

In addition to CannTrust, the suit also includes the underwriters of the CannTrust offering: Merrill Lynch Canada, Citigroup Global Markets Canada, Credit Suisse Securities (Canada), RBC Dominion Securities, Jefferies Securities and Canaccord Genuity.

The raise was designed to secure CannTrust with US$170 million in gross proceeds thanks to the sale of just over 5.4 million shares.

Tax audit and advisory firm KPMG is also included as a defendant in this case, given its role as CannTrust’s auditor.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

 

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Gage Growth (CSE:GAGE) CEO Fabian Monaco talks about the company’s latest merger and acquisition partnership with TerrAscend (CSE:TER,OTCQX:TRSSF) and how its different streams of revenue are driving Gage’s exponential growth within the cannabis landscape. 

“In 2021, we really hit the ground running, just like we’re going to hit 2022 running even faster. We had phenomenal growth, quarter-over-quarter growth, and we’re looking to expand quite exponentially as we approach the year 2022 in Michigan,” Monaco said.

Gage entered into a US$545 million definitive arrangement agreement with TerrAscend wherein shareholders of Gage will receive 0.3001 of a common share of TerrAscend for each Gage Share.

This CEO Interview is brought to you by:

Gage Growth (CSE GAGE) is a premier cannabis cultivator, retailer and brand in Michigan that operates on the idea that “good is just not good enough.” Its core values of providing premium cannabis to market, positively shaping cannabis culture and nurturing the community primes the company for success and rapid economic growth.Send me an Investor Kit

The combined business will have operations in five states and in Canada, including seven cultivation and processing facilities and 23 operating dispensaries serving both medical and adult-use cannabis markets in the US and Canada.

Part of the company’s plan for expansion is to bring the phenomenal Cookies brand to Canada. It will be available exclusively in Ontario via the Ontario Cannabis Store, the largest purchaser of cannabis in the world.

“We’re going to bring the Cookies brand to Canada very, very soon. We plan on opening a retail store in Canada and be the first ever Cookies-branded retail store,” said Monaco. 

Watch the full interview with Gage Growth CEO Fabian Monaco above. 

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Specialist Investment Company, MMJ Group Holdings Limited (ASX: MMJ) (“MMJ”), wishes to advise that BevCanna Enterprises Inc.(CSE:BEV) (“BEV” or “BevCanna”) has announced an offer (the Offer) to acquire 100% of Embark Health Inc. (“Embark”). MMJ’s investment in Embark consists of shares and warrants with a current book value of CAD2.4m.

Subject to a review of the Offer documentation, MMJ expects that its share of the Initial Consideration (refer below) would approximate the current book value of MMJ’s investment1.

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Spyder Cannabis Inc. (TSXV:SPDR) (“Spyder” or the “Company“), an established Canadian cannabis and vape retailer, is pleased to announce that its specialty vape retail brand, 180 Smoke, has entered into a strategic supplier agreement with Yi Hao Ji (Canada) Ltd. (“Yi Hao Ji“) to offer RELX closed-pod vaping products across its corporate and franchise stores, e-commerce and wholesale channels.

The closed-pod system is one of the fastest-growing sectors in the vaping vertical. More specifically, in Canada closed vaping systems have a compounded annual growth rate of 25% between 2019 and 2024 and currently account for 44% of all vape-related sales in Canada as compared to 4% prior to 2019[1].

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New High-Tech Hardware System to Launch in 16 States by Year End

– Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) (“Curaleaf” or the “Company”), a leading U.S. provider of consumer products in cannabis, today announced the release of Cliq by Select, a breakthrough hardware system from its Select brand designed to significantly upgrade the consumer’s vaping experience. Cliq is the culmination of years of research and development to create the perfect marriage of Select’s award-winning cannabis oil with a new, intelligently designed delivery system. This new hardware will debut at Hall of Flowers today and launch in Oregon California and Arizona next week. The hardware will then continue to roll-out nationwide in states such as Massachusetts Colorado Florida Maryland Michigan Nevada New York Connecticut Maine Utah Ohio and Pennsylvania .

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RELX closed-pod products to be offered across 180 Smoke’s retail, e-commerce and wholesale channels

Spyder Cannabis Inc. (TSXV: SPDR) (“Spyder” or the “Company”), an established Canadian cannabis and vape retailer, is pleased to announce that its specialty vape retail brand, 180 Smoke, has entered into a strategic supplier agreement with Yi Hao Ji (Canada) Ltd. (“Yi Hao Ji”) to offer RELX closed-pod vaping products across its corporate and franchise stores, e-commerce and wholesale channels.

The closed-pod system is one of the fastest-growing sectors in the vaping vertical. More specifically, in Canada closed vaping systems have a compounded annual growth rate of 25% between 2019 and 2024 and currently account for 44% of all vape-related sales in Canada as compared to 4% prior to 2019[1].

“The high-level of interest in closed-pod systems is largely due to their portable nature, the concentration of nicotine salts and available popular flavours,” says Christina Pan, COO of Spyder Cannabis. “This makes RELX a perfect fit for 180 Smoke. Fundamentally as a retailer, we believe in providing consumers with high-quality, curated options, carrying both local and international brands so we can educate and guide our adult consumers safely on their vaping journey and permanently quit combustible cigarettes.”

“180 Smoke is a high-touch, experiential centre for vaping and like-minded products, where customers can learn more about RELX and its points of difference. This agreement not only provides access to one of Canada’s largest online and in-store vaping customer bases but also its marketing services and knowledgeable sales associates that will give RELX – China’s largest e-cigarette brand – an edge in the Canadian market,” Ryan Yin from Yi Hao Ji says.

“This agreement represents Spyder’s ongoing interest to continue serving both vape and cannabis consumers,” adds Cameron Wickham, CEO of Spyder Cannabis.

About Yi Hao Ji

Yi Hao Ji Technology Co., Ltd. (hereinafter referred to as “YHJ“) is one of the largest distributors for e-cigarettes, 3C products, and FMCG in China. Starting with the strategy of RELX e-cigarette globalization, YHJ has built a global sales and service network across Asia, Europe, and the Americas. Yi Hao Ji is the authorized strategic partner of RELX in Canada.

About Spyder Cannabis Inc.

Spyder is an established cannabis and vape retailer that owns and operates two licensed dispensaries under the brand SPDR Cannabis in Ontario and 28 vape retail locations across Ontario under the retail brands 180 Smoke and Spyder Vapes. 180 Smoke is a leading omni-channel Canadian vape retailer with a strong e-commerce presence and over 230,000 registered customers across its B2C channel.

Cautionary Statements

Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance of the Company. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “may”, “projected”, “estimated” and similar expressions, and negatives thereto, and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company’s current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to the parties. Forward-looking information necessarily involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. The forward-looking information contained in this release is made as of the date hereof and the parties are not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

Neither the TSX Venture Exchange (“TSXV“) nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Spyder Cannabis Inc.
Cameron Wickham
Executive Vice-Chair and Chief Executive Officer
T: (905) 330-1602
E: corporate@spydercannabis.com

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