CannTrust fires its CEO, stocks jump

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After a dip in the cannabis stock market, some are beginning to rebound

After it was revealed in May that CannTrust was secretly cultivating marijuana, regulators and investors weren’t too happy. The revelation caused a ripple effect across the entire marijuana stock market, with CannTrust obviously taking the brunt of the impact. Things began to turn around slightly at the end of last week after CannTrust CEO Peter Aceto was fired “with cause” and the company’s president, Eric Paul, was forced to resign. The markets responded kindly to the news, with many cannabis companies enjoying their first gains in over six weeks.

Curaleaf Holdings jumped last week and is now up another 2.45%. Charlotte’s Web is now up an additional 8.99% after its 4.5% increase last week and cannabis vertical Akerna is up a total of 4.2% since last week.

Others, though, haven’t been as fortunate. Aurora Cannabis saw an initial spike, but is now down 3.79%. Tilray has lost a total of 7.34% since late last week and OrganiGram gained 2.1%, only to lose 3.58% in the latest figures.

As far as CannTrust is concerned, it definitely isn’t in the clear yet. It climbed 18% after the management changes were announced, but is now down 4.17%. Over the past month, the company has seen its stock drop 54% and it still isn’t clear what will happen with any investigation into the company’s wrongdoing. CannTrust board member Robert Marcovitch, who is investigating the issue and is now serving as the company’s interim CEO, says, “Our first priority is to complete the remaining items of our investigation and bring the company’s operations into full regulatory compliance.”