CannTrust stock rallies after executive departures; ex-Canopy CEO Linton weighs in

CannTrust shares jumped as much as 18 per cent during Friday’s trading session after the company disclosed it fired CEO Peter Aceto “with cause” and “demanded” chair Eric Paul resign. But what’s next for the beleaguered cannabis producer? BNN Bloomberg spoke with former Canopy Growth co-CEO Bruce Linton who said CannTrust could emerge as a potential election issue this fall, and there’s a “window of time” for another company to acquire the embattled firm. During his wide-ranging interview, Linton also commented on Couche-Tard’s foray into cannabis retail outlets, getting fired himself, keeping Canopy’s stock and who he thinks would be the right person to take the reins at the Smiths Falls, Ont.-based company.

Curaleaf responds to U.S. FDA on mislabelling CBD products

U.S. cannabis producer Curaleaf formally responded to the U.S. Food and Drug Administration on Friday after the government agency slammed the company for the way it marketed and sold CBD. Curaleaf said its hemp-based subsidiary pulled its blog and the third-party links in it, as well as removing any statements and social media posts to which FDA had taken exception to. Several of Curaleaf’s hemp-based products were also discontinued from sale, the company said. "Our industry needs, wants and appreciates the work the FDA is doing to ensure there is regulation and compliance in the CBD marketplace," said Joseph Lusardi, Curaleaf’s CEO.

Origin House divests AltMed stake as precondition to closing deal with Cresco Labs

Origin House announced Friday it divested its 5.1 per cent interest in AltMed for US$6 million, one of the conditions needed to close its acquisition by U.S. cannabis operator Cresco Labs. Origin House said Cresco Labs is prohibited under state law from acquiring additional positions in Florida, which AltMed operates in. Origin House CEO Marc Lustig also entered an agreement with Zola Global Investors - which acquired most of the company’s AltMed stake - to personally repurchase a portion of their interest in AltMed under certain conditions. Origin House is still awaiting U.S. government approval to close its $1.1 billion deal with Cresco.

DAILY BUZZ

$6.92
-- The price of a gram of cannabis in Canada, down 2.2 per cent from the prior week, according to the Cannabis Benchmark’s Canada Cannabis Spot Index. This equates to US$2,391 per pound at current exchange rates.

Cannabis Canada is BNN Bloomberg’s in-depth series exploring the stunning formation of the entirely new – and controversial – Canadian recreational marijuana industry. Read more from the special series here and subscribe to our Cannabis Canada newsletter to have the latest marijuana news delivered directly to your inbox every day.