And the saga involving the Canadian pot company, CannTrust, continues.
Stocks of the controversial CannTrust, CTST, -26.66 %, TRST, -28.03% is further down by 26.66% percent after regulators are saying that the company, which analysts believe in having been dragging the cannabis industry down, is yet again found out to have been involving in another series of violations. This time, it’s with another site.
CannTrust Holdings Inc. said Monday it has received a report from Health Canada informing it that its manufacturing facility in Vaughan, Ontario is “noncompliant” with several regulations after compliance investigations were held early July. This news is not new with the company though, as they are currently embroiled with a similar scandal involving one of their other sites in Pelham, Ontario.
The health regulators allegedly found out that the company has been using rooms converted from operational areas to storage areas in their Vaughan site since June 2018 without permission. According to the report of the regulators, the company has constructed two new storage areas, one of which was used to store cannabis, without necessary permits.
On top of that, the storage facility also has inadequate security controls at the facility, low-quality assurance investigations, and controls, and was using standard operating procedures that did not meet requirements under regulations. Furthermore, the company also are throwing away and not retaining relevant documents that would help the health inspectors make their audit of the company’s policy in a timely manner.
“As previously announced, the company implemented a voluntary hold on the sale and shipment of all cannabis products while Health Canada reviewed its Vaughan, Ontario manufacturing facility,” the company said in a statement. “CannTrust continues to work closely with Health Canada and will provide further details of the hold and other developments as they become available.”
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