CannTrust Holdings Inc. (TRST.TO 24.94%) plunged 26 per cent in pre-market trading Monday after the troubled Canadian pot company said a second facility breached regulations.

Health Canada, the government agency that oversees the cannabis industry, has informed CannTrust that its manufacturing facility in Vaughan, Ontario broke several rules, the company said in a statement. CannTrust has already been struggling with the fallout from breaches at its greenhouse in Pelham, Ontario, where it grew cannabis in unlicensed rooms.

The Pelham breaches led to the firing of Chief Executive Officer Peter Aceto, a halt on all sales and shipments of CannTrust products, and a joint investigation by securities regulators and police. Its auditor KPMG LLP withdrew its reports on the Canadian cannabis company’s year-end and first-quarter results.

Results

Health Canada found the following problems at the Vaughan facility:

-Five rooms converted from operational areas to storage without prior approval; these were used for storage since June 2018

-Two new…

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