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 small business licenses.
The organization mentioned in a news release its board “has determined that it is important to destroy about CA$12 million of biological assets and approximately CA$65 million worth of inventory that was not authorized by CannTrust’s license.”
The inventory becoming destroyed incorporates solution that was returned by individuals, distributors and retailers.
“Given the status of its licenses, the organization is unable to procedure the material becoming destroyed or sell it to other licensed producers,” the organization mentioned in the news release.
“The destruction procedure will let the organization 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 beneath regulatory scrutiny considering the fact that a whistleblower alerted Well being 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 Well being 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 organization mentioned Monday it will give a detailed remediation program to Well being Canada on or before Oct. 21, 2019.