Some CannTrust products removed from Ontario Cannabis Store

Cornelia Mascio
Luglio 11, 2019

The Ontario Cannabis Store says it has removed certain CannTrust Holdings Inc. products from its shelves online and at physical outlets until Health Canada completes its investigation involving the licensed producer.

CannTrust said yesterday that it was notified by Health Canada that it had found illegal growing in five unlicensed rooms at its greenhouse between October 2018 and March 2019, before receiving the appropriate licences in April 2019. In addition, the Company voluntarily put another 7,500 kg of its cannabis inventory on hold until all of the inventory is compliant with regulations.

CannTrust, whose shares are down about 35% this week, said it has assisted in identifying lots received by partners that were cultivated in the unlicensed rooms, and will continue to update them on the situation.

The non-compliant rating is based on observations by the regulator regarding the growing of cannabis in five unlicensed rooms and inaccurate information provided to the regulator by CannTrust employees.

Health Canada has given the company 10 days to submit a report about its use of unlicensed facilities.

CannTrust shares plunged after the news broke, going down $1.23, or 19 percent, to $5.23 on the Toronto Stock Exchange (TSX) in the late morning Monday, and fell as low as $5.03 after the market opened - its lowest level since 2017.

Jefferies analyst Ryan Tomkins said he believes there will "undoubtedly be a financial impact".

"We want to reassure all our patients and adult-use consumers that all product sold has passed quality control testing at Health Canada licensed labs as well as CannTrust's own quality control processes and safety reviews", a CannTrust spokeswoman said in an email. CannTrust has accepted Health Canada's non-compliance finding and has taken actions to ensure current and future compliance.

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