People have been using cannabis as an herbal treatment for centuries. Currently many doctors are prescribing it for treating various health problems under regulatory guidelines. However, governments across the world still consider it to be illegal while some allow it to treat clinical problems.
In Canada, Cannabis producers are regulated by Health Canada. The agency has recently made headlines by cancelling cannabis company CannTrust’s license to sell and produce cannabis over regulatory compliance issues.
In response to the remediation plan and to regain Health Canada’s regulatory complacence, CannTrust has announced that it would destroy $65 million value worth of weed inventory and about $12 million of biological assets like plants.
Reports claim that the Canadian health regulator had frozen CannTrust’s license to sell and grow cannabis as it found multiple CannTrust facilities were not compliant with pot growth regulations. However, CannTrust has decided not to challenge the regulator’s suspension order and remain focused on working transparently and collaboratively with the regulator to address its non-compliance matters.
As per sources, the correct amount of material being destroyed will be verified and validated after the destruction. The destruction of the inventory would also include products that was returned by retailers, patients and distributors.
Sources cite that the move will allow CannTrust to free up much-needed capacity to store material and implement remediation measures that have been processed in accordance with the company’s license. The destruction of the impacted inventory will also act as a vital part of the company’s remediation plan.
Robert Marcovitch, Interim CEO, CannTrust claims that the company aims to meet regulatory standards of Health Canada and rebuild the confidence and trust of its investors, patients, customers, and primary regulator.
He assured that their firm’s detailed remediation plan will address all the compliance issues identified by Health Canada as well as help build an improved compliance environment for the future.
Source Credit: https://www.businessinsider.in/stock-market/news/notorious-cannabis-producer-canntrust-will-destroy-77-million-of-weed-inventory-and-plants-to-gain-regulatory-approval/articleshow/71588162.cms