In a news release issued early this morning, CannTrust Holdings’s (TSX: TRST) (NYSE: CTST) European partner Stenocare announced that further product had been discovered at their facility that came from the illegal grow operation conducted by CannTrust Holdings.
While the firm, in which CannTrust is believed to own a 25% equity stake, previously stated that only one small batch had been found to come from the illicit grow operation, four more batches of CBD oil product had been found. This brings the total to five illicit batches that CannTrust has shipped to Denmark, however its unclear just how much product is contained in a single batch.
The news follows a development in the story from yesterday evening, where former employee Nick Lalonde went on record with the Globe and Mail to identify that measures had been taken to hide the grow from Health Canada. The former employee described one instance wherein fake walls were erected to hide the product from photographs being taken for the regulatory body.
“We’re hanging these poly walls, these white poly walls … moving tables with hundreds of plants on them out of the camera view, just to snap a picture of the room with nothing in it,”Nick Lalonda, former CannTrust employee
Source: Globe and Mail
It’s believed that Lalonde was the whistleblower who brought the illegal actions forward to Health Canada via an email sent in mid June. Health Canada officials reportedly visited the site two days later to begin interviewing employees on the matter to further develop their case.
It has not yet been confirmed whether illegal product was also shipped to CannTrust’s Australian partner Cannatrek Ltd in the shipment announced last week.
Information for this briefing was found via The Globe and Mail and CannTrust Holdings. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.