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article imageOntario Cannabis Store returns $2.9 million of CannTrust product

By Karen Graham     Aug 19, 2019 in Business
CannTrust Holdings Inc. announced Monday morning it had received a notice from the Ontario Cannabis Store that they were returning all of the company's products because they do not conform with the terms of its master cannabis supply agreement.
The products being returned are valued at C$2.9 million. This latest blow to the company is a continuation of ongoing problems they are having with Health Canada.
Health Canada froze sales of several tons of CannTrust marijuana products over a regulatory breach discovered in June at its manufacturing facility in Pelham, Ontario. The company allegedly hid thousands of pot plants behind temporary walls in order to stage photographs of an unlicensed growing room.
Then, last week, Health Canada found fault with cannabis production at a second CannTrust Holdings Inc facility, It is said that Health Canada found a whole list of problems, according to BNN Bloomberg.
According to CTV News Canada, Health Canada has placed a hold on CannTrust's inventory including approximately 5,200 kilograms (11,023 pounds) of dried cannabis and the company has also instituted a voluntary hold of approximately 7,500 kilograms (16,535 pounds) of dried cannabis equivalent.
Canntrust pointed out that the Ontario Cannabis Store operates independently of Health Canada and that Health Canada has not ordered a recall of any CannTrust products.
Today's news sent CannTrust shares down 3.3 percent in premarket trade. The stock has lost 65 percent of its value in the last three months, ever since Health Canada seized five metric tons of product in June from the company's manufacturing facility in Pelham, Ontario, according to Market Watch.
On the New York Stock Exchange today, CannTrust shares dipped to a low of $1.98 at 10:05 a.m. after opening at $2.09 - a loss of 5.0 percent.
More about canntrust, Ontario cannabis store, $29 million, Health canada, supply agreement
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