Embattled CannTrust Holdings on Monday disclosed it plans to destroy 77 million Canadian dollars ($58.two million) worth of cannabis plants and inventory as component of the Ontario company’s efforts to regain its suspended business enterprise licenses.
The corporation stated in a news release its board “has determined that it is essential to destroy about CA$12 million of biological assets and approximately CA$65 million worth of inventory that was not authorized by CannTrust’s license.”
The inventory getting destroyed contains solution that was returned by individuals, distributors and retailers.
“Given the status of its licenses, the corporation is unable to method the material getting destroyed or sell it to other licensed producers,” the corporation stated in the news release.
“The destruction method will enable the corporation to totally free up significantly-required capacity to each implement remediation measures and shop material that has been grown and processed in accordance with the company’s license since April five, 2019.”
CannTrust has been below regulatory scrutiny because a whistleblower alerted Wellness Canada in July to unlicensed cultivation at the company’s facility in Pelham, Ontario.
Citing noncompliance with Canada’s federal cannabis law and regulations, CannTrust stated in September it had received a Notice of License Suspension from Wellness Canada.
At the time, CannTrust stated the action constituted a partial suspension of its license for common cultivation and a complete suspension of its licenses for common processing, health-related sales and analysis.
The corporation stated Monday it will deliver a detailed remediation program to Wellness Canada on or before Oct. 21, 2019.