CannTrust's Danish partner quarantines pot products linked to illegal growing

Marco Green
July 11, 2019

The OCS says it has voluntarily pulled all affected products after the regulator put a hold on thousands of kilograms of CannTrust's cannabis after Health Canada found it was growing pot in unlicensed rooms. (TSX:TRST) have been removed from shelves and taken offline from the Ontario Cannabis Store, after Health Canada finishes its investigation involving the licensed producer, which has been deemed non-compliant. CannTrust also said that it instituted a voluntary hold on approximately 7,500 kilograms of dried cannabis equivalent that also was produced in the unlicensed rooms. These rooms were constructed in accordance with regulations and Good Production Practices, and licenses were issued for each of the five rooms in April 2019.

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. All other product it received from CannTrust was cultivated in compliant rooms, it said.

CannTrust says Health Canada is conducting quality checks on the product in question in Penham, and results are expected in the next 10 to 12 business days.

The amount of cannabis CannTrust has put on hold could pose trouble for the company, as RBC Capital Markets analyst Douglas Miehm estimates it represents the majority of the company's cannabis stock.

"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.

"At this time, the impact of these matters on CannTrust's financial results are unknown until Health Canada completes its quality testing of product from Pelham which is now on hold".

Other reports by Click Lancashire

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