Courtesy of Benzinga.
Canada-based producer of medical and recreational cannabis company CannTrust Holdings Inc (NYSE: CTST) responded to a Health Canada decision that one of its greenhouse facilities is non-compliant with regulations.
What Happened
Canada’s regulatory body said CannTrust had been growing cannabis in five unlicensed rooms at a facility in Pelham, Ontario, between October 2018 and March 2019, the Financial Post reported. During this period the company’s application was pending and was received in April.
Nevertheless, Health Canada placed a hold on around 5,200 kg of dried cannabis and could remain in this state until the regulatory concludes CannTrust is compliant with all regulations. Meanwhile, CannTrust put a voluntary hold on 7,500 kg of dried cannabis in the same rooms that were previously unlicensed.
CannTrust responded and said it has “accepted” the non-compliance finding and has taken actions to “ensure current and future compliance.” CEO Peter Aceto said the non-compliance is the result of “errors in judgment.”
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Why It’s Important
Quality of cannabis and compliance with regulations is a “priority” for CannTrust, the company said. To better address its priorities, CannTrust named Andrea Kirk as Vice President, Quality. The executive boasts 20 years of relevant experience in the pharmaceutical sector and has been working with the company since March.
CannTrust said the financial impact of Health Canada’s findings will remain “unknown” until the regulatory body completes quality testing of some of its products.
CannTrust shares traded lower by 20.2% to $3.94 in Monday’s pre-market session.
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