CannTrust License Suspended Following Increasing List of Violations
Health Canada officially suspended CannTrust’s license, according to Bloomberg. Its ordeal began in July, when unlicensed grow rooms were discovered in its Pelham, Ontario greenhouse.
Later, its Vaughan location was also found to be non-compliant. The facility had used rooms for storage without prior approval. Health Canada also noted that the company had failed to meet minimum requirements for quality control, while security was inadequate.
They were also caught attempting to withhold key documentation, which consequently impeded Health Canada’s audit.
But the final straw came when, according to a September 6th article in BNN Bloomberg, senior staff brought in black market cannabis seeds. Employees attempted to cover it up by renaming up to 20 strains.
Frankly, CannTrust should consider the suspension a blessing. Despite the violations how they were covered up, Health Canada still did not revoke CannTrust’s ability to operate.
In fact, the company can still operate as normal in a limited capacity. Bloomberg explains:
“The company won’t be able to sell or produce cannabis, other than cultivating and harvesting existing plants, CannTrust said in a statement Tuesday.”
This at least ensures that months of cultivation and product do not go to waste. But CannTrust has a long way to go.
However, this really does not affect the company much, since they already suspended sales and distribution when Health Canada started its investigation months ago.
An Opportunity for Correction
The good news for CannTrust is that a suspension means they will have the opportunity to address and correct their mistakes. This of course will be no easy feat, but it is the company’s only chance.
According to Bloomberg:
“Health Canada, the government agency responsible for cannabis regulations, told CannTrust that it could potentially address the suspension by taking measures to ensure pot will be produced and distributed only as authorized and to recover cannabis that wasn’t authorized by the license. It would also need to improve key personnel’s knowledge of and compliance with regulations; and to improve record keeping and inventory tracking.”
But these are not the only issues the company has to address. In a previous article, we addressed some of CannTrust’s employee reviews. They revealed a specific pattern that demonstrated serious issues with management and corporate culture.
If CannTrust does not address its work environment, no amount of compliance will keep it running smoothly.
A Well-Earned Suspension
CannTrust’s violations are bad on their own. But the way senior staff and employees tried to cover them up – especially with their procurement and distribution of illegal marijuana – makes them seem very corrupt and dishonest.
At this point, the chances of CannTrust regaining public confidence are probably next to nil. The jaw-dropping premeditation of these activities is an insult to the industry and the clients who faithfully purchased the company’s products.
This entire time, medical and recreational clients were consuming poorly-inspected, potentially illegal products.
Admittedly, regulations are tight and often stifling. But if licensed producers want to operate in this industry, they have to abide by those laws.
CannTrust is an extreme example of what can happen when companies fail to meet compliance standards. We understand that most producers would never intentionally break regulations, but accidental non-compliance is just as bad in Health Canada’s eyes.
WeedAdvisor’s diverse array of business solutions include critical functions like inventory tracking, compliance, record keeping, safety and more. With our help, government, licensed producers and retailers can all avoid the costly complications associated with non-compliance and ensure a safe, efficient work environment.