The federal regulatory agency cited the licensed producer’s previous non-compliance with certain requirements of the Canadian Cannabis Act as reasons for the decision.
This includes a partial suspension of the company's licence for standard cultivation and a full suspension of its licences for standard processing, medical sales, cannabis drugs and research.
For cannabis lots that were previously propagated, CannTrust will be permitted to continue cultivating and harvesting them, as well as perform associated activities such as drying, trimming and milling. CannTrust will not be allowed to propagate new lots or batches of cannabis.
- CannTrust lays of 20 per cent of workforce
- Second CannTrust facility in the weeds
- CannTrust fires CEO, board chair resigns
According to a statement released by CannTrust this week, the notice from Health Canada states that CannTrust's licences could be reinstated once “the reasons for the suspension no longer exist or if CannTrust demonstrates that the suspension was unfounded.”
Other suggested measures by Health Canada to address public health safety risks include ensuring authorized production and distribution of cannabis within the facility, recovering cannabis unauthorized by CannTrust’s licence; improving staff knowledge of federal cannabis regulations, and improving record keeping.
CannTrust says their management team and board of directors are reviewing Health Canada’s notice with their advisors.
This follows after CannTrust’s greenhouse facility in Pelhem and manufacturing facility in Vaughan were both found non-compliant with Health Canada regulations. The licensed produced let go of then CEO Peter Aceto, while board chair Eric Paul resigned.