Article by David George-Cosh, BNN Bloomberg
British Columbia-based cannabis producer Evergreen Medicinal Supply Inc.’s licence to grow and sell marijuana was suspended by federal regulators, the latest compliance shortfall to hit Canada’s legal pot market.
Health Canada spokesperson Tammy Jarbeau confirmed to BNN Bloomberg in an email that the government agency suspended Evergreen’s ability to “cultivate, process and sell dried and fresh cannabis, cannabis plants and cannabis seeds” in August following an unannounced inspection that led to a non-compliance order on the company.
“On Aug. 9, Health Canada suspended Evergreen Medicinal Supply’s licences to protect public health and safety, including preventing cannabis from being diverted to the illegal market, as a result of non-compliance with certain provisions of the Cannabis Act and Cannabis Regulations,” Jarbeau said.
Evergreen Medicinal’s suspension is the second time that Health Canada has enforced such an action on a licensed cannabis producer. Earlier this year, Health Canada suspended the sales licence of Winnipeg-based cannabis producer Bonify Holdings Corp. after the company was found to be selling marijuana it obtained from illicit sources.
It also comes as investors await Health Canada’s ruling on what penalty it will enforce on CannTrust Holdings Inc., after the regulator found thousands of kilograms of cannabis being grown in unlicensed rooms. Possible penalties for CannTrust range from a $1-million fine, to a suspension or revocation of the company’s ability to produce and sell legal cannabis in Canada.