CannTrust to destroy $77-million worth of weed

At least investors saw this announcement as good news

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By now everyone in the weed industry has heard about CannTrust. The Canadian cannabis company imploded earlier this year after a whistleblower leaked the fact that they had been growing plants illegally.

Health Canada barred them from selling any more weed. And that eventually led the company to fire most of its board and slump into hiding.

But an unanswered question remained through it all: what’s going to happen to all that illegal weed?

On Monday, the company announced they are going to destroy it – all $77-million of it. That figure reportedly includes both plants and weed that’s already been harvested.

No, they aren’t allowed to throw it in a big bonfire and hotbox most of Ontario. There are all sorts of rules around how cannabis must be destroyed.

The official government suggestion is to mix it with kitty litter and water. Other companies have come up with solutions like composting or throwing it into a smoke-free incinerator. 

Investors, at least, saw this announcement as good news, and the company’s stock price rebounded slightly.

Remarkably, the company says it plans on regaining its license and selling weed once again. But will anyone want to buy it?