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article imageCannTrust has its license suspended by Health Canada

By Karen Graham     Sep 18, 2019 in Business
CannTrust announced Tuesday that Health Canada has suspended the company's license to produce and sell cannabis. Regulators halted CannTrust stock Tuesday morning pending news after its U.S.-traded shares fell 3.3 percent in morning trading.
According to a statement from CannTrust, Heath Canada partially suspended the company’s standard cultivation license. CannTrust also reported that it received a “full suspension of its licenses for standard processing, medical sales, cannabis drugs and research issued under the Cannabis regulations.”
Health Canada has been investigating the Vaughan, Ontario-based cannabis company for allegedly cultivating pot in unlicensed grow rooms. While under suspension, CannTrust will be allowed to cultivate and harvest existing lots or batches previously propagated, as well as conducting ancillary activities to those lots, including drying, trimming and milling.
They will not be permitted to propagate new lots or batches of cannabis or engage in the sale or distribution of cannabis. The notice also states that CannTrust can get its licenses reinstated under section 64(4) of the Cannabis Act if the company demonstrates the suspension was unfounded or if the reasons for the suspension no longer exist, according to CBC Canada.
The Health Canada notification suggests that CannTrust could address public health and safety risks by doing the following:
Ensuring its cannabis is produced and distributed only as licensed, including measures to control the movement of cannabis in and out of CannTrust's site.
Recovering cannabis that was not authorized by CannTrust's license.
Improving key personnel's knowledge of and compliance with the provisions of the Cannabis Act and other regulations that apply to the company.
Improving record keeping and inventory tracking.
After CannTrust announced the news, its stock fell nearly 14 percent to $1.29 a share during the regular market session. The sell-off continued after the market closed.
According to Yahoo Finance on Wednesday, CannTrust shares are at $1.2202 -0.07 (-5.4264%).
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