Ontario Cannabis Store pulls affected CannTrust products amid Health Canada probe

  • Ontario Cannabis Store pulls affected CannTrust products amid Health Canada probe

Ontario Cannabis Store pulls affected CannTrust products amid Health Canada probe

Health Canada has placed a hold on approximately 5,200 kilograms of dried cannabis that was harvested in unlicensed rooms at the Pelham facility, until it deems CannTrust is compliant with regulations.

Its spokesman added that customers who ordered the products will be eligible for a refund if returned in original unopened condition within 14 days of delivery, but did not specify which products have been impacted. Growing in unlicensed rooms took place from October 2018 to March 2019 during which time CannTrust had pending applications for these rooms with Health Canada.

The Danish company, which caters to medical cannabis patients, said it has worked with CannTrust to investigate the origins of all products it has received from the licensed producer and only one "very small" batch has been linked to the five unlicensed rooms. The company also placed a voluntary hold of about 7,500 kg of dried cannabis equivalent also produced in unlicensed rooms. "The Company is exploring options to mitigate these shortages".

Ontario has already faced cannabis shortage in Canada this year, with the initial rollout of Ontario Cannabis Stores (OCS) limited to 25 stores due to shortages.

On July 8, 2019, CannTrust announced that its greenhouse facility in Pelham, Ontario, was audited by Health Canada and found to be "non-compliant". TRST stock fell sharply, around 16%, down $1.06, at $5.40 on the Toronto Stock Exchange after falling as low at $5.03 just after the market opened. "CannTrust shares may also trade at a wider discount to the peer group given the outstanding questions about the company's internal quality controls and/or governance".

"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.