Photograph by Matteo Paganell

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Cannabis analyst Tamy Chen watches industry regulator Health Canada for clues on Canada’s pot producers. Late Monday, she reported that the industry’s April deliveries dropped sharply from March levels. That prompted the BMO Capital Markets analyst to cut her sales forecast for OrganiGram Holdings. She also downgraded the shares of CannTrust Holdings.

Earlier on Monday, CannTrust disclosed that it had gotten into hot water with Health Canada by producing more than 12 metric tons of dried cannabis in unlicensed growing facilities. As CannTrust’s NYSE-listed stock (ticker: CTST) sank 22% by Monday’s close, to US$3.83, Chen sliced her rating from Outperform to Market Perform. And she dropped her target price on the dual-listed company from C$11 to C$6 (or US$4.57).