Canadian cannabis company CannTrust Holdings Inc has announced a plan to attempt to address Health Canada’s concerns about their business.
Back on September 17th its licenses to produce and sell cannabis were suspended. It was one of many setbacks for the pot firm which had been under investigation by regulators for cultivation in unlicensed rooms.
The Vaughan, Ont.-based company said it received a notice of licence suspension from the federal regulator indicating its authority to produce cannabis, other than cultivating and harvesting, and to sell cannabis have been suspended.
In a release today the company said that they continue “to make significant progress on its commitment to take any and all actions required to both bring the Company into full regulatory compliance and seek the full reinstatement of its licenses.”
Their remediation plan consists of:
– Measures to ensure that cannabis will be produced and distributed only as authorized, including measures to control the movement of cannabis in and out of CannTrust’s site;
– Measures to recover cannabis that was not authorized by CannTrust’s license;
– Measures to improve key personnel’s knowledge of, and compliance with the provisions of the Act and the Regulations that apply to CannTrust; and,
– Measures for improving the manner in which records are kept, including a plan to improve the inventory tracking, and any interim measures to ensure that information provided to Health Canada can be reconciled.
Part of those measures include destroying around $12 million of “biological assets” and around $65 million in inventory that wasn’t authorized under their license. Some of which was returned by patients, distributors and retailers.
Interim CEO Robert Marcovitch said their aim is “to rebuild the trust and confidence of our primary regulator, investors, patients, and customers.”
With files from The Canadian Press