CannTrust Advances its Strategy Towards Regulatory Compliance
Firm to supply detailed remediation program to Well being 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 necessary to each bring the Firm into complete regulatory compliance and seek the complete reinstatement of its licenses.
On September 17, 2019, CannTrust announced that Well being Canada had suspended the Company’s licenses to generate cannabis and sell cannabis, without having affecting the Company’s potential to continue cultivating and harvesting cannabis. The Firm will not challenge Well being 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 offered Well being Canada with an outline of its proposed remediation method. This method is aimed at implementing the measures identified by Well being Canada as vital to try to address the regulator’s issues, namely:
- Measures to assure that cannabis will be created and distributed only as authorized, such as measures to manage the movement of cannabis in and out of CannTrust’s internet site
- Measures to recover cannabis that was not authorized by CannTrust’s license
- Measures to increase essential personnel’s know-how 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, such as a program to increase the inventory tracking, and any interim measures to assure that details offered to Well being Canada can be reconciled.
In order to implement these measures, CannTrust’s Board of Directors has determined that it is vital to destroy about $12 million of biological assets and about $65 million worth of inventory that was not authorized by CannTrust’s licence. The precise quantity of material destroyed will be validated and verified when the destruction is full. The inventory getting destroyed involves solution that was returned by individuals, distributors, and retailers. Offered the status of its licenses, the Firm is unable to approach the material getting destroyed or sell it to other licensed producers. The destruction approach will permit the Firm to totally free up a great deal necessary capacity to each implement remediation measures and retailer material that has been grown and processed in accordance with the Company’s license considering the fact that April five, 2019.
The destruction of the impacted inventory is each an critical and integral element of CannTrust executing its remediation program, as effectively as addressing Well being Canada’s remediation expectations. The Firm will supply a detailed remediation program to Well being Canada on or just before October 21, 2019. This program will aim to address all of the measures identified by Well being Canada as vital for the reinstatement of the Company’s licenses.
CannTrust is confident that its detailed remediation program will not only address all of the compliance difficulties identified by Well being Canada, but it will also create a very best-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 Well being Canada’s regulatory common, and to rebuild the trust and self-confidence of our major regulator, investors, individuals, and shoppers.
Original press release
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