CannTrust Nailed for Selling Unlicensed Product

This morning CannTrust announced a bombshell for the cannabis industry.
The Company put out in a Monday morning press release stating their greenhouse facility in Pelham, Ontariois was non-compliant with certain regulations and a massive amount of inventory has been placed on hold.

The violation was based on observations by Health Canada regarding the growing of cannabis in five unlicensed rooms and inaccurate information provided to the regulator by CannTrust employees.  The unlicensed growing took place in rooms with pending applications from October 2018 to March 2019.

Health Canada has placed a hold on inventory which includes approximately 5,200kg of dried cannabis that was harvested in the previously unlicensed rooms in Pelham, until it deems that the Company is compliant with regulations. In addition, CannTrust has instituted a voluntary hold of approximately 7,500kg of dried cannabis equivalent at its Vaughan manufacturing facility that was produced in the previously unlicensed rooms.

From the companies CYQ1 financial statements, CannTrust had approximately 7,583kg of dried flower and 10,433kg of extracts in finished goods.

Our team has focused on building a culture of transparency, trust and excellence in every aspect of our business, including our interactions with the regulator. We have made many changes to make this right with Health Canada. We made errors in judgement, but the lessons we have learned here will serve us well moving forward

Peter Aceto, CEO, CannTrust

The rumors were sprinkling around on social media over the weekend:

Leading many to question whether there was any fire behind this smoke:

DeepDive will have more in depth coverage later today.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

Antimony Resources Drills 5.27% Sb Over 4.95 Metres In Latest Results

Nord Precious Metals Identifies 29 Veins At Castle East Following 3D Modeling

Related News

Canntrust Cannabis Products To Return To Retailers This Month

In an announcement that will most certainly enrage countless legacy cannabis consumers and growers, Canntrust...

Wednesday, December 2, 2020, 07:58:12 AM

CannTrust Sees All Licenses Reinstated By Health Canada

Canntrust Holdings (OTC: CNTTQ) this morning announced that it has received notice from Health Canada...

Thursday, August 6, 2020, 08:31:04 AM

CannTrust Sees Three Former Executives Charged With Fraud Among Other Items

It appears that Canadian regulators might be finally stepping up to the plate. It was...

Tuesday, June 22, 2021, 10:12:55 AM

CannTrust Holdings Receives Notice of Suspension from Health Canada

CannTrust Holdings (TSX: TRST) (NYSE: CTST) announced this afternoon that it has received a Notice...

Tuesday, September 17, 2019, 03:26:30 PM

OSC Withdraws Charges Against CannTrust Officials Following Inaccurate Witness Testimony

The Ontario Securities Commission withdrew its case against three CannTrust officials initially charged with securities...

Wednesday, December 14, 2022, 01:41:36 PM