Cannabis stocks climb after CannTrust says it’s reviewing options, including possible sale

CannTrust Holdings shares rallied Wednesday to lead cannabis stocks higher, after the troubled company hired a financial adviser for a strategic review of its options, including a possible sale of the company.

CannTrust shares CTST, -3.40% TRST, -3.07%  soared almost 12% on the news, recouping some of the 55% plunge over the past month after Health Canada seized more than five metric tons of the company’s cannabis after discovering it was growing in unlicensed rooms.

The selloff intensified after the Globe and Mail uncovered email traffic showing top management was aware of the illegal grow and a Danish partner confirmed that some of the product had been exported. The company pushed out Chief Executive Peter Aceto, and President Eric Paul resigned. A special committee continues to investigate the matter, and has now hired Greenhill & Co. Canada Ltd.

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