Federal cannabis licenses for one of CannTrust’s facilities were reinstated, about nine months after the embattled Ontario producer was hit with suspensions over legal and regulatory breaches.
In September, Health Canada suspended the licenses held by CannTrust for its Niagara and Vaughan sites over noncompliance with the Cannabis Act and regulations.
Now, Health Canada said the standard cultivation and processing licenses for the Niagara facility have been reinstated.
“Health Canada has reviewed all information submitted by CannTrust Inc. related to its Pelham site since its licenses were suspended, and is satisfied with the actions the company has taken in response to the suspension,” the federal health department told Marijuana Business Daily via email.
In reinstating the CannTrust Niagara licenses, Health Canada cited:
- Significant personnel changes.
- Implementation of controls, processes and systems to mitigate the risks related to the original suspension.
- Improved recordkeeping.
- Comprehensive training for all staff.
With the newly reinstated licenses in hand, CannTrust said it will immediately recommence operations at the Niagara facility.
However, the company cannot provide a time frame for when its products will be available and noted in a news release that “is dependent upon receiving a response from Health Canada to CannTrust’s license reinstatement submission with respect to its Vaughan manufacturing facility.”
In 2019, CannTrust received a “noncompliant” rating by Health Canada for operating unlicensed grow rooms.
The company was granted creditor protection in March under the Companies’ Creditors Arrangement Act by the Ontario Superior Court of Justice.
The court also issued an order authorizing and directing CannTrust to undertake a sale and investment-solicitation process.
The Canadian cannabis producer’s shares were delisted from the New York Stock Exchange in April and the Toronto Stock Exchange in early May.