Embattled CannTrust Holdings on Monday disclosed it plans to destroy 77 million Canadian dollars ($58.two million) worth of cannabis plants and inventory as portion of the Ontario company’s efforts to regain its suspended enterprise licenses.
The firm mentioned in a news release its board “has determined that it is essential to destroy around 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 consists of solution that was returned by individuals, distributors and retailers.
“Given the status of its licenses, the firm is unable to course of action the material getting destroyed or sell it to other licensed producers,” the firm mentioned in the news release.
“The destruction course of action will permit the firm to no cost 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 given that a whistleblower alerted Overall health 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 mentioned in September it had received a Notice of License Suspension from Overall health Canada.
At the time, CannTrust mentioned the action constituted a partial suspension of its license for normal cultivation and a complete suspension of its licenses for normal processing, health-related sales and investigation.
The firm mentioned Monday it will deliver a detailed remediation strategy to Overall health Canada on or before Oct. 21, 2019.