CannTrust Halts Cannabis Sales Over ‘Illegal Grow Rooms’

July 16, 2019

After a week of turmoil Canadian firm CannTrust Holdings has ceased cannabis sales as it launches a full internal investigation into its own ‘illegal grow rooms’.

The crisis started on Monday when Health Canada announced it had discovered the company was growing in unlicensed rooms at its Pelham facility in Ontario. Canadian newspaper The Globe and Mail reported the company used fake walls to ‘hide’ its cannabis from Health Canada.

It later emerged that  CannTrust’s Danish partner Stenocare A/S said it had sold some of the illegal pot to its patients.

Unlicensed Exporters Face Jail

The Canadian Cannabis Act forbids the export of unlicensed cannabis and anyone found guilty could face jail, reported BNN Bloomberg. On Thursday CannTrust Holdings said in a statement that it has ceased sale and shipment of all cannabis products.

The company also said it planned to form an independent special committee to investigate the illegal grow rooms ‘in its entirety’. 

Sherry Boodram, CEO of Toronto-based regulatory consulting firm CannDelta and a former Health Canada Inspector, told BNN Bloomberg the company had applied for licences to for the crop and the quality of the product was not an issue – just that it had been grown illegally.

Licence Suspension Threat

She said there had been previous examples on non-compliance by CannTrust and it could face a growing licence suspension. BNN Bloomberg’s David George-Cosh later reported that from April 2015 to March 2018, CannTrust was cited with 15 major, or critical observations made by Health Canada during site inspections at CannTrust locations.

It reported that some of the other infractions the company was found to be in violation of between 2015 and 2018 included security issues with storage vaults and mold in grow rooms.

Health Canada’s initial announcement said the Pelham facility had produced cannabis in five unlicensed rooms for a period of six months – from October 2018 to March 2019 – and as a result was found to be non-compliant under its regulations. It said it had seized more than five metric tons of CannTrust’s inventory.

CannTrust, which is listed on both the Toronto and New York Stock Exchanges, has seen its stock price plummet by almost 40% over the last week.

The post CannTrust Halts Cannabis Sales Over ‘Illegal Grow Rooms’ appeared first on Cannadelics.





Also in Education

2022 Cannabis Ballot Measures: Up to Six States Voting for Recreational

August 13, 2022

They’re not there yet, and they might not get there, but this coming November, at least three states, (and possibly six), are putting it up to voters in yet more cannabis ballot measures for recreational legalizations. Will we get up to 25 legal states by the end of elections? 2022 elections are going to be […]

The post 2022 Cannabis Ballot Measures: Up to Six States Voting for Recreational appeared first on Cannadelics.

Continue Reading

Psyched Wellness is Bringing You Amanita Mushrooms – And It’s All Legal

August 13, 2022

Magic mushrooms are the new buzz word, but they don’t all fall into just one category. Sure, there are psilocybin magic mushrooms, but there are also amanita mushrooms, for a different kind of high and unique medical advantages. Now, the company Psyched Wellness is offering amanita mushroom products, and the best part is, it’s all […]

The post Psyched Wellness is Bringing You Amanita Mushrooms – And It’s All Legal appeared first on Cannadelics.

Continue Reading

Drug Myths: Does Sugar Stop Your High?

August 13, 2022

There are many myths surrounding recreational highs. However, there are probably just as many truths. One person’s individual experience can soon spread and become gospel – drug scripture that everyone abides by. This is useful if the original case is based on fact, but very problematic if it’s not. Take the war on drugs, for […]

The post Drug Myths: Does Sugar Stop Your High? appeared first on Cannadelics.

Continue Reading