Member ‘avispa’ Glides In First In August 2019 Stock Challenge

With a stunning return of 62.49%, this month’s first place contestant, ‘avispa’, has concluded the week unchallenged. Although next-in-line second place contestant ‘Kurt Schultz’ (28.89% return) and third place contestant ‘yukoncornelius67@gmail.com’ (26.87% return) certainly have some catching up to do, they’ve still performed admirably so far in this month’s Stock Challenge!

CannTrust Holdings Breaks Out While Auxly Cannabis Breaks Down

CannTrust Inc.

CannTrust rose 40.80% from C$2.99 to C$4.21 today following news that the Company’s independent auditor had withdrawn its report dated March 27, 2019.

Via PR Newswire,

“CannTrust Holdings . . . today announced that the Company’s independent auditor, KPMG LLP, Chartered Professional Accountants . . . has informed the Company that effective August 8, 2019, it is withdrawing its report dated March 27, 2019 on the Company’s consolidated financial statements as at and for the year ended December 31, 2018 and its interim report to the Audit Committee dated May 13, 2019 on the unaudited condensed interim consolidated financial statements as at and for the three month period ended March 31, 2019 . . . and therefore, the KPMG Reports should no longer be relied upon. KPMG remains CannTrust’s independent auditor . . .”

KPMG LLP’s decision is hardly an unexpected one, given the scandal that rocked CannTrust earlier this July.

Via Bloomberg,

“The move by KPMG LLP came after CannTrust said last week that it may have to restate its results for the periods ended Dec. 31 and March 31. The company also said it will likely miss the filing deadline for its second-quarter results after regulators found it grew pot in unlicensed parts of its Pelham, Ontario greenhouse.

The company’s stock has fallen 56% since the regulatory breach was first disclosed in early July.”

Auxly Cannabis Group Inc.

Auxly Cannabis fell 18.63% from C$1.02 to C$0.83 today, despite the fact that Imperial Brands’ invested C$123 million into the Company just over 2 weeks ago.

Wrapping Up

The first full week of the August 2019 Stock Challenge may be over, but there’s no telling what next week will bring for our contestants. If you haven’t already, be sure to reserve your symbols for next month’s challenge now—after all, you can always change them later!