Beleaguered cannabis business CannTrust says that Well being Canada has suspended its licence to create and sell cannabis, months immediately after the business was discovered to be developing cannabis in unlicenced rooms.
CannTrust mentioned Tuesday in a press release that it has received a Notice of Licence Suspension from Well being Canada.
“The Notice constitutes a partial suspension of the Company’s licence for normal cultivation and a complete suspension of its licences for normal processing, healthcare sales, cannabis drugs and analysis issued beneath the Cannabis regulations,” the business mentioned.
The business can nonetheless cultivate and harvest current cannabis batches, but can’t start to develop new lots or sell or distribute cannabis.
The notice was provided due to the company’s preceding non-compliance with regulations.
In July, CannTrust was initially discovered to be developing cannabis in 5 non-compliant rooms in its 12-area facility in Pelham, Ontario. The business and Well being Canada place about 12,700 kilograms of cannabis total on hold immediately after the discovery, but quickly Well being Canada discovered its second facility in Vaughan, Ontario, was also non-compliant.
The business suspended all sales of its cannabis, fired CEO Peter Aceto, asked chairman Eric Paul to resign, and made a particular committee to probe the regulation infringements.
CannTrust has turn out to be a warning for how a main player in the new cannabis market can fall.
Well being Canada’s suspension could be lifted, although, if the business can prove it is unfounded or its motives are no longer valid, and deliver some suggestions to address the motives for the suspension.
The agency recommends higher manage more than the movement of cannabis in and out of CannTrust’s facility, to recover the unlicenced cannabis that was created, and to boost record-maintaining and employees expertise of regulations.
CannTrust is operating to meet Well being Canada’s compliance needs and told BNN Bloomberg that “significant progress has been produced.”
“CannTrust’s paramount and urgent priority is to satisfy regulators that the business meets or exceeds all regulatory needs so that the motives for suspension no longer exist, we are in a position to resume operations and to regain the trust and self-assurance of our shareholders, individuals, buyers and partners,” interim CEO Robert Marcovitch mentioned.
Other Canadian cannabis providers have also run into difficulty with Well being Canada’s regulations out of the more than 200 existing federally licenced providers.
Final month, the agency suspended the licence for British Columbia-primarily based cannabis business Evergreen Medicinal Provide due to violating provisions in the Cannabis Act, and Winnipeg’s Bonify Healthcare Cannabis also has had its licence suspended due to claims it sold cannabis that was acquired from illegal sources.