CannTrust says Health Canada has suspended its licence

Marco Green
September 20, 2019

The Alberta government's cannabis wholesaler and online retailer is returning products from CannTrust Holdings Inc. after Health Canada suspended the company's licences to produce and sell pot. "Health Canada may also determine that additional compliance and enforcement actions are warranted". Recovering cannabis that was not authorized by CannTrust's license. In February, it joined a handful of Canadian cannabis companies to list on the New York Stock Exchange.

With really no short-term fix to this solution, the only possible ray of hope could be a potential acquisition from another company.

"Health Canada inspectors have delivered the notices of suspension to CannTrust Inc. today, and are seizing and detaining all cannabis products at both sites", a spokesperson for the regulator said. The suspension notice cites the refusal of the company to comply with regulations of the Act and the matters under discussion between them and Health Canada.

Now it seems that we are in the endgame for CannTrust as the company announced to the world that Health Canada officially withdrew its production license.

"Over the past two months, the Company has moved swiftly to assess and address Health Canada's concerns, including areas of operational non-compliance", CannTrust said in the release.

Other provinces say they are not taking any action in response to the suspension. In February, Health Canada suspended the sales licence of Winnipeg-based producer Bonify Holdings Corp. when an investigation revealed that it had been selling illicit product. "There are no safety issues with the products now in the market".

At the time of writing, CannTrust stock is down 9% at $1.18 after hitting an all-time low of $1.13 earlier in the session.

The B.C. Liquor Distribution Branch's position has not changed, spokeswoman Viviana Zanocco said.

After the investigation was revealed, CannTrust halted all cannabis sales, fired Mr. Aceto "with cause" and forced Mr. Paul to resign.

The North American Marijuana Index, which tracks the top cannabis stocks in the USA and Canada, lost 1% to stand at 176.6 points. That marks a almost 74 per cent drop from its closing price on July 5 of $6.46.

Regulators halted CannTrust stock Tuesday morning pending news after its USA -traded shares fell 3.3% in morning trading.

Measures for improving the manner in which records are kept, including a plan to improve the inventory tracking, and any interim measures to ensure that information provided to Health Canada can be reconciled.

"With ongoing returns and operations at a standstill, the company could face meaningful cash burn over the coming months", he said in a recent note to clients.

Other reports by Click Lancashire

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