In an update to clients on Tuesday, Paradigm Capital analyst Corey Hammill said investors need to be patient when it comes to beleaguered pot company CannTrust Holdings (CannTrust Holdings Stock Quote, Chart, News TSX:TRST), which just announced a remediation plan to get back in the good books of Canada\u2019s cannabis regulator. Shares of CannTrust were up sharply on Tuesday with the company\u2019s announcement that it \u201ccontinues to make significant progress\u201d to become fully compliant with Health Canada in aid of getting the regulator to reinstate its licenses to produce and sell cannabis. The Vaughan, Ontario-based company said that it will be destroying $12-million worth of biological assets and $65-million in inventory including product returned by patients, distributors and retailers, all as a result of TRST\u2019s being found earlier this year to have been growing cannabis in unlicensed facilities. \u201cCannTrust is confident that its detailed remediation plan will not only address all of the compliance issues identified by Health Canada, but it will also build a best-in-class compliance environment for the future,\u201d said Robert Marcovitch, the Company's interim CEO, in a press release on Monday. \u201cWe have already made significant progress in these efforts. Our goal is to meet and exceed Health Canada's regulatory standard and to rebuild the trust and confidence of our primary regulator, investors, patients and customers.\u201d Other measures the company said would be enacted include improving key personnel\u2019s knowledge of and compliance with Health Canada\u2019s regulations and improving record-keeping and inventory practices. CannTrust said that it will have a detailed remediation strategy submitted to Health Canada on or before October 21. CannTrust Holdings: analyst Corey Hammill says stay on the sidelines... Hammill called the announcement a step forward but argued that it doesn\u2019t bring any further clarity to CannTrust\u2019s situation, as much will depend on Health Canada\u2019s response. \u201cA lot has transpired since CannTrust received a non-compliance report from Health Canada for its Niagara cultivation facility on July 8. The company has fired its CEO (Peter Aceto) and Chairman (Eric Paul), has been the subject of many class action lawsuits, and has lost ~85 per cent of its equity value. What was once an industry leading, low-cost Canadian LP and a clear-cut leader in the medical market has become the poster child for negative sentiment that has crept into the cannabis space,\u201d writes Hammill. \u201cIn the best case scenario, Health Canada accepts CannTrust\u2019s plan and moves to reinstate its license. A major outstanding issue remains the pending US class action lawsuits resulting from the illegal growing activity. Recall CannTrust is dual listed and completed a ~US$200-million equity financing in May at US$5.50. Shares closed Monday at US$1.06,\u201d he writes. \u201cWe recommend investors remain on the sidelines, looking at other Canadian LP\u2019s,\u201d Hammill says. Health Canada suspended CannTrust\u2019s growing and processing licenses on September 17, three months after it found that CannTrust had been growing cannabis in unlicensed rooms in its Pelham, Ontario, facility, with apparent attempts to conceal the plants from inspectors. Regulators subsequently found the company in breach of regulations at its Vaughan, Ontario, facility.