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

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

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

Any forward-looking information and statements speak only as of the date on which they are made, and, except as required by law, CannTrust does not undertake any obligation to update or revise any forward-looking information or statements, whether as a result of new information, future events or otherwise.

Its the second recent instance where CannTrust was found by Health Canada to be operating in non-compliant facilities.

CannTrust continued to slide on Monday after Health Canada deals the company yet another blow.

Health Canada has found fault with cannabis production at a second CannTrust Holdings Inc facility, a month after the regulator froze sales of several tonnes of marijuana grown at another one of its Ontario operations. 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. "As previously announced, the Company implemented a voluntary hold on the sale and shipment of all cannabis products while Health Canada reviewed its Vaughan, Ontario manufacturing facility", the company said in a statement.

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".

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

More troubles for a cannabis grower with a greenhouse in Pelham. The company ousted its CEO after the incident.

Under the direction of the recently constituted independent Special Committee of the board of directors of the Company and newly-appointed interim CEO, Robert Marcovitch, the Company has already begun the process of investigating and remediating the root causes of any non-compliance and expects to propose a robust remediation plan to Health Canada. (NYSE:CTST) news were published by: Prnewswire.com which released: "CTST CLASS ACTION UPDATE: Hagens Berman Updates CannTrust (CTST) Investors, Encourages Investors Who Suffered $50,000+ Losses to Contact the Firm - PRNewswire" on July 15, 2019, also Globenewswire.com with their article: "Zhang Investor Law Reminds Investors of September 9 Deadline in Securities Class Action Lawsuit Against CannTrust Holdings Inc. â€" CTST - GlobeNewswire" published on August 07, 2019, Fool.ca published: "Is This Cannabis Stock a Better Buy Than Canopy Growth Corp (TSX:WEED)?

Among the bright spots were shares of material companies, helped by a 3% gain in Barrick Gold Corp after it reported quarterly adjusted profit that almost doubled on higher production.