License suspension ‘stark reminder’ for cannabis companies

A licensed producer was suspended by Health Canada for the primary time in 4 years, an indication that the federal government company is preserving a better eye on companies for potential violations forward of this month’s launch of the nation’s leisure marijuana market.

Health Canada notified Ontario-based Agrima Botanicals on Sept. 26 that it was suspending the corporate’s manufacturing and supplier licenses over infractions associated to noncompliance with the Access to Cannabis for Medical Purposes Regulations (ACMPR) and the Narcotic Control Regulations.

“It is a good reminder two weeks from legalization that you can’t take your eye off the ball,” stated David Hyde, founder and president of David Hyde and Associates and considered one of Canada’s prime cannabis safety and licensing consultants. “You’ve really got to focus on the compliance and sustaining it.”

The infractions contain points with recordkeeping and different compliance necessities, in response to an Agrima information launch.

The firm was given 10 days to answer Health Canada’s motion.

“Agrima has commenced the process of addressing the identified issues and has initiated discussions with Health Canada for the reinstatement of the licenses,” the corporate stated within the launch.

The firm didn’t instantly reply to Marijuana Business Daily’s requests for remark.

“It’s a stark reminder to licensed producers and applicants that the cornerstone of the market is sustaining the high level of compliance with the expanding regulations of the Cannabis Act,” Hyde famous.

“That’s a critical thing for these LPs as they now navigate a new and adjusted landscape within the regulations, and Health Canada are going to need to make sure they maintain very high standards.”

In 2014, Health Canada suspended the licenses of three licensed producers, nevertheless it has not undertaken any such actions since.

All three LPs have been suspended for noncompliance with the ACMPR, Health Canada stated. The producers corrected their noncompliance and have been restored to lively license standing.

There have been 23 approved licensed producers in 2014; that quantity now stands at 120.

Agrima Botanicals is a subsidiary of Ascent Industries, which is traded on the Canadian Securities Exchange underneath the ticker image ASNT.

Matt Lamers might be reached at [email protected]

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