CannTrust Shares Plunge After Second Facility Found Non-Compliant by Health Canada

Article by Reuters via Financial Post

CannTrust shares plunge after second facility found non-compliant by Health Canada Latest blow to beleaguered producer The news comes just over a month after an audit by the regulator revealed CannTrust had been growing cannabis in five unlicensed rooms at a greenhouse in Pelham, Ont.Bloomberg

Health Canada on Monday slapped a non-compliant rating on CannTrust Holdings Inc’s Vaughan, Ontario facility, about a month after the regulator found unlicensed pot growing at another operation in the province.

U.S.-listed shares of the company, which accepted the health regulator’s findings, were down about 25 per cent at $2.39 before the opening bell.

The company said Heath Canada’s rating was based on observations made during an inspection completed between July 10 and July 16, and noted that five rooms, converted from operational areas, were used for storage since June 2018 without prior approval by the regulator.

The regulator also noted that two new areas were constructed without prior approval and that security controls as well as quality assurance investigations were inadequate at the facility, while operating procedures did not to meet requirements.

Documents and information were also not retained in a manner to enable Health Canada to complete its audit in a timely manner.

Last month, Health Canada placed on hold about 5,200 kilograms of dried cannabis harvested in five unlicensed rooms. CannTrust also put a voluntary hold on 7,500 kg of inventory made in the rooms.

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