It seems that cannabis companies need to make a more, err pointed, effort when it comes to quality control. One lucky consumer this week, whom after purchasing a TerrAscend Corp (CSE: TER) from a Hobo Cannabis store in Kelowna, British Columbia, found a pencil in his pre-rolled joint rather than any actual cannabis.
The pre-roll was from TerrAscend’s Havent St line of product, which the company refers to as a premium line of product intended for the Canadian adult-use market. As per the news report issued by Kelowna Now, the pre-roll did not have any cannabis product in it. In it’s place was a piece of a pencil. The consumer tried several times to light the pre-roll, and upon the failure to light, elected to examine the product further for what the issue may be.
Hobo Cannabis, for their part, exchanged the product immediately, and then proceeded to follow up with the licensed producer. TerrAscend, in a statement released earlier today, indicated that no wooden materials are allowed within the production area of their facility.
We take the security of our operations very seriously and apply rigorous technical measures to ensure that we only ship safe, quality cannabis products. These measures include the grinding of cannabis and the weighing of individual products, together helping to preserve the integrity of the products we ship to market. It is important to note that pencils and wooden materials are not permitted in the production areas of our facilities.Quote from TerrAscend’s Notice
For their part, the firm also is undergoing an internal investigation to determine how exactly the foreign material ended up within their product. TerrAscend also commented that the cannabis supply chain includes multiple stakeholders, and that “each is a partner in safeguarding the products we provide.”
The wording in TerrAscend’s notice is indicative that the product itself may not have originally been sourced from its own facilities, but rather from a supplier. The firm currently has multiple supply agreements in place within Canada, primarily with smaller producers. It’s unknown however where the manufacturing of pre-rolls takes place within the firms supply chain.
The news could not come at a worse time however for TerrAscend, who this morning announced that they are looking to conduct a raise of unsecured convertible debentures to the tune of $25 million.
TerrAscend is currently trading at $5.11 on the Canadian Securities Exchange.
Information for this briefing was found via Kelowna Now and TerrAscend Corp. 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.