CannTrust said half its stock and a quarter of its plants have been suspended by Health Canada, and warned its Q2 results will be “materially impacted” if that inventory is destroyed.
Financial Post
- The Ontario Cannabis Store returned $2.9M in CannTrust products it called “non-conforming” (the OCS did not specify in what manner it did not conform). This is not related to Health Canada, who have not recalled CannTrust products.
Bloomberg, Global News
Denmark’s sole MED importer, Stenocare A/S, says it no longer believes the CannTrust products it bought were produced in pesticide-free environments as the company guaranteed they were.
- Denmark requires MED to be completely pesticide free. In a press release, Stenocare A/S wrote, “It now appears that CannTrust introduced a more general use of Health Canada approved pesticides in the new greenhouse where cultivation of medical cannabis plants is located.”
- CannTrust ended an exclusive brokerage agreement with alcohol giant Breakthru Beverage‘s subsidiary Kindred Partners, which the two companies launched as a CannTrust brokerage arm. During that process, Breakthrough bought more than 900,000 shares of CannTrust at $10.23. They are now trading in the $3.50-range. Globe and Mail
CannTrust’s master grower, operations manager, and VP quality operations all departed this week. Seven anonymous employees told the Financial Post that following the management shakeup last fall that saw Tangerine Bank CEO Peter Aceto take the CEO, the workplace culture shifted toward the demand for productivity “at all costs.”
Financial Post
Quick Hits
- Despite having hired more staff, Health Canada is overwhelmed by the volume of research-license applications. It has caused backlogs of research projects waiting for Health Canada’s irrationally hard-to-achieve approval.
GrowthOp, CBC Kitchener-Waterloo, Science
