Article by David George-Cosh, BNN Bloomberg
CannTrust Holdings Inc.’s (TRST.TO 8.88%) recreational cannabis products have been pulled from the shelves of Canada’s biggest pot market, the latest blow to the company after Health Canada said it was non-compliant with certain regulations.
Daffyd Roderick, director of communications for the Ontario Cannabis Store, the province’s online retailer and wholesale distributor to pot stores, confirmed that CannTrust’s products weren’t available for sale.
“Due to the Health Canada temporary hold on certain CannTrust cannabis products, OCS has voluntarily removed all affected products from distribution pending the outcome of the investigation,” Roderick said in an email to BNN Bloomberg.
Roderick declined to specify what specific products were impacted or how much of CannTrust’s cannabis was removed, but confirmed the OCS has stopped distributing the company’s products to authorized retail stores in the province. Screenshots distributed on social media that were unverified by BNN Bloomberg show three CannTrust products have been removed from the OCS website, but other products sold by the company are also currently unavailable for sale.
CannTrust’s shares have plunged almost 27 per cent on the Toronto Stock Exchange since Monday when the company disclosed an inspection by Health Canada identified several unauthorized activities by the pot producer, such as producing thousands of kilograms of cannabis in unlicensed rooms before it had obtained the necessary approvals from the federal regulator.
As a result, Health Canada ordered 5,200 kilograms of unlicensed cannabis to be placed on hold while CannTrust has voluntarily placed an additional 7,500 kilograms of dried cannabis equivalent produced in previously unlicensed rooms at its Vaughan, Ont. facility on hold as well.