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Regulator Found Another CannTrust Facility Is Breaking Rules

CannTrust stocks slid more than 20% after the revelation

Troubled Canadian cannabis company 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 certain regulations, sending its battered stock down 26% to weigh heavily on the overall sector.

The company which is already in trouble with the regulator over unlicensed growing at a facility in Pelham, Ontario, said Health Canada found the breaches during a July 10 to 16 inspection.

The regulator found that the Vaughan facility was using rooms converted from operational areas to storage areas since June 2018 without permission; it had constructed two new areas without prior approval, one of which was used to store cannabis; had inadequate security controls at the facility; had inadequate quality assurance investigations and controls; was using standard operating procedures that did not meet requirements under regulations; and was not retaining documents or information in a manner that would allow the regulator to complete its audit in a timely manner.


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