CannTrust Discloses Notice Of Licence Suspension

CANADA: CannTrust Holdings has announced that it received late this morning a Notice of Licence Suspension under section 64(1) of the Cannabis Act. The Notice cites the Company’s previous non-compliance with certain requirements of the Cannabis Act and the regulation made thereunder in respect of the matters that the Company has been discussing with Health Canada.

CannTrust logoThe Notice states that Health Canada has suspended CannTrust’s authority to produce cannabis, other than cultivating and harvesting, and to sell cannabis. As such, the Notice constitutes a partial suspension of the Company’s licence for standard cultivation and a full suspension of its licences for standard processing, medical sales, cannabis drugs and research issued under the Cannabis regulations. While the suspension remains in effect, CannTrust will be permitted to cultivate and harvest existing lots or batches previously propagated, as well as conducting ancillary activities to those lots, including drying, trimming and milling. During the suspension, CannTrust may not propagate new lots or batches of cannabis or engage in the sale or distribution of cannabis.

The Notice states that Health Canada will reinstate CannTrust’s licences under section 64(4) of the Cannabis Act if the reasons for the suspension no longer exist or if CannTrust demonstrates that the suspension was unfounded.  The Notice also states that Health Canada considers that implementation of the following measures could potentially address the public health and safety risks that contributed to Health Canada’s decision to issue the Notice:

  • Measures to ensure that cannabis will be produced and distributed only as authorized, including measures to control the movement of cannabis in and out of CannTrust’s site;

  • Measures to recover cannabis that was not authorized by CannTrust’s licence;

  • Measures to improve key personnel’s knowledge of, and compliance with the provisions of the Act and the Regulations that apply to CannTrust; and,

  • Measures for improving the manner in which records are kept, including a plan to improve the inventory tracking, and any interim measures to ensure that information provided to Health Canada can be reconciled.

The Company’s management and Board of Directors are reviewing the Notice with the Company’s counsel and other advisors.

Over the past two months, the Company has moved swiftly to assess and address Health Canada’s concerns, including areas of operational non-compliance. The Company remains committed to being in full regulatory compliance.

WSLCB Issues Emergency License Suspensions Issued For Port Angeles’ North Coast Concentrates

WASHINGTON: The Washington State Liquor and Cannabis Board (WSLCB) issued two emergency marijuana license suspensions on Friday, November 2, 2018 for North Coast Concentrates, with locations at 2933 E Highway 101 and 52433 Highway 112 in Port Angeles. The suspensions are effective for 180 days beginning November 2, 2018 until May 1, 2019. During that time the WSLCB will seek permanent revocation of the licenses.

LCB Leaf Data

On September 20, 2018 an employee of North Coast Concentrates was pulled over by Lower Elwha Police, during the course of the traffic stop officers found 112 grams of traceable marijuana concentrates, three large jars and a large tote bin of untraced dried marijuana flower. The products were not manifested in the state traceability system. Subsequent investigation by WSLCB officers revealed that the untraced product had been removed from the licensees grow operation and that the traced concentrates were returned from a marijuana retailer in Tacoma several weeks earlier.

Seized text messages from the employee’s cell phone indicated that the licensee was aware of both the diversion and the selling of product on the black market. While executing the suspension orders, officers seized 556 pounds of marijuana flower product, 24 pounds of marijuana oil and 204 plants from both locations.

Due to the severity of these violations and the risk of diversion should the business remain open the Board issued the emergency suspensions. Emergency suspensions represent an extraordinary exercise of the state’s power and the WSLCB is mandated to ensure that an emergency suspension is reasonable, justifiable and legal in every way. The WSLCB issued one emergency suspension in 2017, and six in 2018.