CannTrust says facility in Vaughan, Ont., rated non-compliant by Health Canada

  • CannTrust says facility in Vaughan, Ont., rated non-compliant by Health Canada

CannTrust says facility in Vaughan, Ont., rated non-compliant by Health Canada

About 6.75M shares traded or 60.85% up from the average. (NYSE:CTST) were released by: Investorplace.com and their article: "Molson Coors May Be the Only Thing Propping up HEXO Stock - Investorplace.com" published on August 12, 2019 as well as Globenewswire.com's news article titled: "Hagens Berman Reminds CannTrust (CTST) Investors of Lead Plaintiff Deadline, Encourages Investors Who Suffered $50,000+ Losses to Contact the Firm - GlobeNewswire" with publication date: July 17, 2019.

Analysts await CannTrust Holdings Inc.

Although the Company, under the supervision of the Special Committee, is preparing a remediation plan for submission to and consideration by Health Canada, Health Canada has advised the Company that it is now unable to provide any guidance about the timing or content of its decisions concerning the Company.

Officials with Health Canada say they have found compliance issues at a second CannTrust greenhouse in Vaughan. The inspection found that five rooms converted from operational areas were being used for storage without approval, and that two new areas were constructed for storage that were also not approved. The company separately put a voluntary hold on 7,500 kg of inventory of dried cannabis equivalent at its Vaughan manufacturing facility that was produced in the rooms.

In addition, Health Canada reported "insufficient security controls at the manufacturing facility", and "inadequate quality assurance investigations and controls".

Canntrust said that Health Canada has not provided it with any guidance around "the timing or content of its decisions concerning the Company".

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This latest development is just the latest in a string of bad news for CannTrust.

The news that the company's facility has failed a recent inspection is troubling because it was supposed to have addressed problems from previous inspections in which the company was found to be growing cannabis in rooms that hadn't received licenses. Upon finding this out, the CEO, Peter Aceto was terminated "with cause", while the Chair, Eric Paul was asked to resign his position.

CannTrust shares fell Friday after the company announced that accounting firm KPMG LLP had withdrawn its March 27 report on 2018 financial results and an interim report for the three months ended Mar. 31, 2019 and declared that the audited results can't be relied upon as accurate, the marijuana grower said Friday in statement from Vaughan, Ont.

The Company's CEO Robert Marcovitch stated: "We are continuing to work hard to regain the trust of Health Canada, our patients, shareholders and partners".