CannTrust stock drops 30% after second facility regulation breach

Besieged Canadian hashish grower CannTrust was notified that a facility was just lately deemed noncompliant with a number of federal hashish laws – the second vital breach at its amenities in simply over a month.

The firm stated it accepted Health Canada’s findings, which have been delivered after markets closed Friday.

Heath Canada’s July 10-16 inspection of the Vaughan, Ontario, facility discovered:

  • Five rooms have been transformed to storage areas with out prior regulator approval.
  • Two new areas have been constructed with out approval of Health Canada, considered one of which was used to retailer hashish since November.
  • The manufacturing facility had inadequate safety and quality-assurance controls.
  • Standard working procedures didn’t meet minimal necessities.
  • Documents or info weren’t retained to allow the regulator to finish its audit in a well timed method.

CannTrust’s stock has been in a tailspin on the Toronto and New York stock exchanges since a whistleblower alerted Health Canada to unlicensed cultivation at its greenhouse in Pelham, Ontario, over a month in the past. The firm’s shares fell greater than 30% within the wake of these revelations.

CannTrust’s shares have fallen one other 30% this week after the corporate disclosed the newest breach.

The federal regulator continues to be figuring out the suitable compliance and enforcement motion for the Pelham, Ontario, regulatory violations.

Health Canada suggested the corporate it couldn’t present any steerage concerning the timing of that call, CannTrust stated in a information launch.

In the previous month, the corporate halted all adult-use and medical gross sales, fired its senior management, and faces a probe by securities regulators and police.

CannTrust additionally employed a monetary adviser to evaluation “strategic alternatives,” together with a potential sale of the corporate.

Categories: Canadian Medical Marijuana & Cannabis Industry News, Cannabis Industry & Marijuana Business Briefs, International Marijuana Business News, United States Cannabis Industry & Marijuana Business News


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