CAN: CannTrust puts on hold on sale and shipment of all cannabis products pending review

CannTrust Holdings Inc. says it has put a hold on product sales and shipments of all its cannabis products as a precaution while Health Canada reviews its Vaughan, Ont., manufacturing facility.

"CannTrust is working closely with the regulator through the review process and expects to provide further detail of the duration of the hold and other developments as they become available, the company said in a release late Thursday.

"At this time, the impact of these matters on CannTrust's financial results are unknown until the regulatory review process is complete."

The company said it has also established a special committee of its board of directors to do its own investigation.

CannTrust said Monday it had been notified by Health Canada that the regulator had discovered unlicensed cultivation at its Ontario greenhouse between October 2018 and March 2019, before the five rooms received the appropriate licences in April 2019.

It said as a result, Health Canada put on hold roughly 5,200 kilograms of CannTrust products from that facility, and the licensed producer put a voluntary hold on an additional 7,500 kilograms of pot products which were also linked.

CannTrust's chief executive Peter Aceto has said that represented the "majority" of its inventory and warned of potential shortages ahead.


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