Article by Reuters via Financial Post
Canadian pot grower CannTrust Holdings on Thursday said that the sale of over half of its stock of cannabis and around a quarter of its plants had been suspended following the discovery of unlicensed cultivation at its facilities.
Regulator Health Canada last month found unlicensed cultivation in five rooms at a CannTrust facility.
Health Canada placed a hold on about 5,200 kilograms (11,500 pounds) of dried cannabis harvested in the rooms, while CannTrust also put a voluntary hold on a further 7,500 kg of cannabis equivalents.
CannTrust on Thursday confirmed its earlier forecast that the value of the impacted inventory and assets was around US$51 million.
It warned that if Health Canada ordered the destruction of affected product, its second-quarter results would be materially impacted.
Since the news broke in July, the company has fired its chief executive officer, disclosed a regulatory investigation, and said its results may have to be restated, sending its shares plummeting over 50 per cent. Earlier this week, Health Canada also found issues at another of its facilities.