CannTrust Advances its Program Towards Regulatory Compliance
Firm to offer detailed remediation strategy to Overall health Canada by October 21, 2019
VAUGHAN, ON, Oct. 14, 2019 /PRNewswire/ – CannTrust Holdings Inc. (“CannTrust” or “the Company”, TSX: TRST,NYSE: CTST) announced that it continues to make important progress on its commitment to take any and all actions expected to each bring the Firm into complete regulatory compliance and seek the complete reinstatement of its licenses.
On September 17, 2019, CannTrust announced that Overall health Canada had suspended the Company’s licenses to generate cannabis and sell cannabis, with out affecting the Company’s capability to continue cultivating and harvesting cannabis. The Firm will not challenge Overall health Canada’s partial suspensions and remains focused on operating collaboratively and transparently with the regulator to address the Company’s non-compliance matters. In pursuit of this objective, the Firm has supplied Overall health Canada with an outline of its proposed remediation method. This method is aimed at implementing the measures identified by Overall health Canada as required to try to address the regulator’s issues, namely:
- Measures to make certain that cannabis will be created and distributed only as authorized, which includes measures to handle the movement of cannabis in and out of CannTrust’s web site
- Measures to recover cannabis that was not authorized by CannTrust’s license
- Measures to strengthen crucial personnel’s understanding of, and compliance with the provisions of the Act and the Regulations that apply to CannTrust and,
- Measures for enhancing the manner in which records are kept, which includes a strategy to strengthen the inventory tracking, and any interim measures to make certain that data supplied to Overall health Canada can be reconciled.
In order to implement these measures, CannTrust’s Board of Directors has determined that it is required to destroy roughly $12 million of biological assets and roughly $65 million worth of inventory that was not authorized by CannTrust’s licence. The precise quantity of material destroyed will be validated and verified as soon as the destruction is full. The inventory becoming destroyed consists of solution that was returned by individuals, distributors, and retailers. Provided the status of its licenses, the Firm is unable to approach the material becoming destroyed or sell it to other licensed producers. The destruction approach will permit the Firm to absolutely free up considerably necessary capacity to each implement remediation measures and retailer material that has been grown and processed in accordance with the Company’s license given that April five, 2019.
The destruction of the impacted inventory is each an crucial and integral portion of CannTrust executing its remediation strategy, as effectively as addressing Overall health Canada’s remediation expectations. The Firm will offer a detailed remediation strategy to Overall health Canada on or prior to October 21, 2019. This strategy will aim to address all of the measures identified by Overall health Canada as required for the reinstatement of the Company’s licenses.
CannTrust is confident that its detailed remediation strategy will not only address all of the compliance troubles identified by Overall health Canada, but it will also develop a finest-in-class compliance atmosphere for the future.
Robert Marcovitch, Interim Chief Executive Officer
We have currently created important progress in these efforts. Our objective is to meet and exceed Overall health Canada’s regulatory typical, and to rebuild the trust and self-assurance of our key regulator, investors, individuals, and clients.
Original press release
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