Cannabis Professional’s daily roundup of industry news. View archive here.
CannTrust receives continued listing notice from the NYSE
CannTrust Holdings Inc. said Tuesday it has received written notification from the New York Stock Exchange that the company is no longer in compliance with the NYSE’s continued listing standard rules because the per-share trading price of the company’s common shares has fallen below the NYSE’s share-price rule. The NYSE requires the average closing price of a listed company’s common shares to be at least US$1 a share over a consecutive 30 trading-day period. As of Dec. 9, the 30 trading-day average closing price of CannTrust’s common shares was US$0.97. In accordance with the NYSE’s rules, CannTrust has six months from the receipt of the notice to regain compliance. During this time period, the company says its common shares will continue to be listed and trade on the NYSE as usual. The company had its licence suspended in September after HC found the company had conducted unlicensed operations in its two facilities.ext.
– Staff
Coft named interim CEO of Zenabis Global
Zenabis Global Inc. announced Wednesday that Kevin Coft has been appointed interim CEO, replacing Andrew Grieve, whose contract was set to expire soon. The Vancouver-based licensed producer says Mr. Grieve will remain on the board of directors as returns to his investment business.
Mr. Coft was one of Zenabis’ founding members, having previously acted as CEO when it was a part of the Sun Pharm group, and before the amalgamation with Bevo Agro that created Zenabis Global Inc. In that role, he was responsible for Zenabis achieving ACMPR compliance as a Canadian cannabis licensed producer.
"In this phase of our growth, we look forward to Kevin’s leadership as we continue our search for a permanent, CPG and operations-focused CEO,” said Monty Sikka, chairman of the board of directors.
Zenabis said it has retained Korn Ferry to assist with the hiring of a permanent CEO in the first quarter of 2020.
- Staff
New law sets standards for New York’s hemp industry
New York’s fast-growing hemp industry is getting a boost from a new law allowing the state to regulate the growth and sale of cannabis-derived extracts such as CBD oil.
Broad-ranging legislation signed by Governor Andrew Cuomo on Monday sets strict guidelines for product testing and labelling and requires hemp growers and processors to obtain a license through the state Department of Agriculture and Markets. It also sets registration requirements for sellers of hemp extract products. But it defers decision-making on hemp extracts such as cannabidiol, or CBD, as food or beverage additives.
Hemp entrepreneurs welcomed the new law, which was developed in consultation with industry leaders.
“It's very significant that we have a framework in place. That's crucial," said George Sewitt, senior vice president of operations for NY Hemp Source and urbanXtracts, which grows hemp in Orange County for cannabidiol, or CBD. “The most important thing is that we'll get rid of the bad actors and snake oil salesmen.”
Cuomo said the state will host a hemp summit in January to further develop policies related to the industry.
More than 400 New York farms were licensed this year to grow industrial hemp. About 100 processors are licensed in New York to produce hemp extracts that are used in tinctures, lotions and other products.
New York’s legislation comes as the U.S. Food and Drug Administration is evaluating how to regulate CBD.
“The FDA is creating an untenable situation for the industry by moving so slowly,” said Joy Beckerman, principal of Hemp Ace International, a New York-based hemp consulting and brokering firm. “New York and other states are leading by setting standards and creating a regulatory framework for the industry.”ext
- Associated Press