CannTrust says Wellness Canada has suspended its licence to sell cannabis


Beleaguered cannabis corporation CannTrust says that Wellness Canada has suspended its licence to generate and sell cannabis, months right after the corporation was discovered to be expanding cannabis in unlicenced rooms.

CannTrust stated Tuesday in a press release that it has received a Notice of Licence Suspension from Wellness Canada.

“The Notice constitutes a partial suspension of the Company’s licence for common cultivation and a complete suspension of its licences for common processing, health-related sales, cannabis drugs and analysis issued below the Cannabis regulations,” the corporation stated.

The corporation can nevertheless cultivate and harvest current cannabis batches, but can not commence to develop new lots or sell or distribute cannabis.

The notice was provided due to the company’s earlier non-compliance with regulations.

In July, CannTrust was very first discovered to be expanding cannabis in 5 non-compliant rooms in its 12-space facility in Pelham, Ontario. The corporation and Wellness Canada place about 12,700 kilograms of cannabis total on hold right after the discovery, but quickly Wellness Canada discovered its second facility in Vaughan, Ontario, was also non-compliant.

The corporation suspended all sales of its cannabis, fired CEO Peter Aceto, asked chairman Eric Paul to resign, and produced a unique committee to probe the regulation infringements.

CannTrust has develop into a warning for how a key player in the new cannabis sector can fall.

Wellness Canada’s suspension could be lifted, even though, if the corporation can prove it is unfounded or its factors are no longer valid, and supply some suggestions to address the factors for the suspension.

The agency recommends higher handle more than the movement of cannabis in and out of CannTrust’s facility, to recover the unlicenced cannabis that was developed, and to increase record-maintaining and employees expertise of regulations.

CannTrust is operating to meet Wellness Canada’s compliance needs and told BNN Bloomberg that “significant progress has been produced.”

“CannTrust’s paramount and urgent priority is to satisfy regulators that the corporation meets or exceeds all regulatory needs so that the factors for suspension no longer exist, we are in a position to resume operations and to regain the trust and self-confidence of our shareholders, individuals, buyers and partners,” interim CEO Robert Marcovitch stated.

Other Canadian cannabis corporations have also run into problems with Wellness Canada’s regulations out of the more than 200 existing federally licenced corporations.

Final month, the agency suspended the licence for British Columbia-primarily based cannabis corporation Evergreen Medicinal Provide due to violating provisions in the Cannabis Act, and Winnipeg’s Bonify Healthcare Cannabis also has had its licence suspended due to claims it sold cannabis that was acquired from illegal sources.


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