CannTrust Promises to Take “Appropriate Actions” to Restore Goodwill
The CannTrust saga continues as Health Canada pushes its investigation forward. So far, their findings remain undisclosed. But one thing is certain – public trust took a huge hit since the non-compliance announcement mid-July.
With all sales on hold, potential loss of license and a progressively shrinking group of customers, CannTrust’s days are numbered. A buyout was seen as the best solution, but that poses a few challenges.
However, if CannTrust does make it through unscathed enough to start fresh, they promise that they will do everything necessary to atone for their actions, says BNN Bloomberg.
Upon being discovered, CannTrust officials made a public pledge, according to Bloomberg:
“In a release Monday, CannTrust said it filed a report to the regulator July 17, that its special committee’s investigations and deliberations are ongoing, and the company will take ‘appropriate actions’ to address its compliance culture and restore trust.”
Recovering public confidence is arguably CannTrust’s biggest concern. While its business remains in limbo and stock drops, the company is bleeding money.
Its success in this regard depends on factors both outside and inside their control.
Future Still Uncertain
CannTrust’s internal investigation and Health Canada’s own probe are both in their infancy. This might be why developments and possible regulatory measures against the company remain unknown.
Bloomberg’s David George-Cosh says:
“…so the investigation continues, from both Health Canada’s side to determine what kind of enforceable action that the regulators are going to be taking on CannTrust…We’re kind of in a waiting game right now…”
As the public knows, Health Canada is not afraid to punish deliberate regulatory violations, as shown by its recent actions against B.C. producer, Agrima. What CannTrust did was definitely deliberate and quite severe. It is possible that, despite the company’s cooperation, Health Canada could resort the “nuclear option,” so to speak.
CannTrust has been doing everything in its power to help with the investigation. One notable move was to assign an independent committee to determine how the unlicensed grow rooms came to be and who was responsible.
“CannTrust itself is doing its own investigation and four members of its board of directors have formed an independent committee to investigate this non-compliance with Health Canada’s inspection.”
According to Cosh, this committee’s job will be to gather information, recommend corrective measures to the board of directors (discipline, improving practices/policies, etc.) and estimate the financial damage, which will undoubtedly be substantial.
WeedAdvisor’s Compliance Expertise
Breaking Health Canada’s strict rules will lead to serious consequences. Although CannTrust’s infractions were intentional, having some system in place to detect non-compliance could have stopped the unlicensed grow rooms.
But non-compliance can be accentual as well. In cases like these, a licensed producer or retailer needs evidence that the business followed all procedures in good faith.
WeedAdvisor’s compliance solutions provide protection on all fronts. They offer the ability to detect anything out of the ordinary, effectively preventing deliberate violations. At the same time, we offer services to monitor employee compliance and inventory-tracking to easily intercept and discontinue any defective batches.
Real-time data tracking helps businesses catch problems as they happen, while streamlining the documentation process, which makes it easier to report to regulatory bodies.