Ontario-based cannabis producer CannTrust has announced to its customers that there will be a shortage in production due to Health Canada finding out they did not have a license to grow the product in a greenhouse room from October 2018 to March 2019.
In addition, the governmental organization has put a hold on about 5,200 kilograms of dried cannabis because of the violation. The company also placed 5000kg on hold voluntarily as an apology for their infringement. As a result, the stock of cannabis dropped by almost 17 percent in Canadian Trade last Monday, July 8.
CannTrust explained, “These rooms were constructed in accordance with regulations and good production practices, and licences were issued for each of the five rooms in April 2019.” Chief Executive Peter Aceto revealed, “We feel confident in its quality and safety because it has gone through testing in Health Canada-sponsored third party labs, as well as our own quality testing. But yes, some product has definitely been released to the provinces,” referring to the unauthorized product that has been released past their facilities at their main growing location in Vaughan.
Aceto continued to elaborate that Health Canada made a surprise visit to their Niagara facility last Wednesday, July 3 and demanded for a formal response to their inspection by July 17, explaining, “Look, mistakes were absolutely made at CannTrust. We have got a very clear process in place that is going to get us back into compliance as soon as possible. We have a history of growing quality products that people like, and we have typically done it in a safe, quality way.”
The head of the company concluded, “To learn of the non-compliance status was disappointing and surprising. Getting to understand what happened here is a priority. We are making sure we are going to be open throughout this process, and will share any data with Health Canada,” adding, “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.”