Organigram pauses some cannabis production over classification dispute

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Canadian cannabis producer Organigram Holdings said it is pausing production of its lozenge product in a 100-milligram THC package pending a resolution over an ongoing dispute with Health Canada.

The Toronto-headquartered company said it received a notification from Health Canada claiming the products were incorrectly classified and labeled as “extract” rather than “edible.”

Organigram is one of a number of companies to have received such a notification this year.

In January, MJBizDaily reported that the federal cannabis regulator had begun asking some licensed marijuana companies to stop selling certain products the agency said were incorrectly classified and labeled as “extracts” rather than “edibles.”

From a packaging perspective, the distinction is important because any cannabis product classified as an “extract” has 100 times more allowable THC per package than a product considered an “edible,” making it more appealing to certain consumers.

Organigram launched the lozenge product nearly two years ago.

The company said in a statement that it “remains of the view that the patent pending products are properly classified as cannabis extracts and compliant with the Cannabis Regulations, and is assessing its (legal) options.”

Citing the Health Canada notification, Organigram said it is permitted to continue selling and distributing its current inventory until May 31, 2023.