/CannTrust says its licence to produce and sell cannabis suspended by Health Canada

CannTrust says its licence to produce and sell cannabis suspended by Health Canada

Health Canada has suspended CannTrust Holdings Inc.’s licence to produce and sell cannabis, the embattled Vaughn, Ont.-based company announced Tuesday afternoon.

According to a press release, CannTrust received a notice from Health Canada stating that its licences for “standard processing, medical sales, cannabis drugs and research issued under the Cannabis regulations” were being fully suspended, while its licence for standard cultivation would be under partial suspension. CannTrust will now be barred from growing new lots or batches of cannabis and from selling or distributing any products. The company will, however, still be able to “cultivate and harvest existing lots of batches” as well as trim, mill and dry that product.

The blow may not necessarily be a permanent one, according to the release. CannTrust may see its licences reinstated if “if the reasons for the suspension no longer exist or if CannTrust demonstrates that the suspension was unfounded.”

The suspensions are the result of the health authority determining that CannTrust was growing illicit cannabis in multiple unlicensed rooms at its Pelham, Ont., greenhouse. Since the initial announcement in July, the company has broadly shuffled its leadership and seen its stock slashed by more than 70 per cent.

More to come.

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