VAUGHAN, ON, Aug. 12, 2019 /PRNewswire/ – CannTrust Holdings Inc. (“CannTrust” or the “Company”, TSX: TRST, NYSE: CTST) supplied an interim update regarding specific current developments affecting the Organization.
Heath Canada Report for Vaughan Manufacturing Facility
Right after trading hours on Friday, August 9, 2019, CannTrust received a report from Overall health Canada. It notified the Organization that its manufacturing facility in Vaughan, Ontario has been rated non-compliant with specific regulations. CannTrust has accepted Overall health Canada‘s findings and remedial actions are underway.
Heath Canada’s rating was primarily based on observations produced throughout an inspection completed throughout the period July 10-16, 2019, which noted:
- The conversion of 5 rooms from operational regions to storage regions. These have been utilized for storage due to the fact June 2018 with no prior approval of Overall health Canada
- The building of two new regions with no prior approval of Overall health Canada. A single of which was utilized to shop cannabis due to the fact November 2018
- Insufficient safety controls at the manufacturing facility
- Inadequate excellent assurance investigations and controls
- Common operating procedures that did not to meet the needs beneath regulations and
- Documents or details that have been not retained in a manner to allow Overall health Canada to total its audit in a timely manner.
As previously announced, the Organization implemented a voluntary hold on the sale and shipment of all cannabis goods though Overall health Canada reviewed its Vaughan, Ontario manufacturing facility. CannTrust continues to operate closely with Overall health Canada and will give additional particulars of the hold and other developments as they come to be readily available.
Particular Committee Supervision
Beneath the path of the not too long ago constituted independent Particular Committee of the board of directors of the Organization and newly-appointed interim CEO, Robert Marcovitch, the Organization has currently begun the method of investigating and remediating the root causes of any non-compliance and expects to propose a robust remediation program to Overall health Canada.
CEO Robert Marcovitch states
The Company’s CEO Robert Marcovitch stated: “We are continuing to operate tough to regain the trust of Overall health Canada, our sufferers, shareholders and partners. Our enterprise has retained independent consultants. And they have currently began addressing some of the deficiencies noted in Overall health Canada’s report. We are seeking at the root causes of these challenges. We will take what ever remedial actions are required to bring the Organization into complete regulatory compliance as swiftly as doable.”
The Organization, beneath the supervision of the Particular Committee, is preparing a remediation program for submission to and consideration by Overall health Canada. But Overall health Canada is presently unable to give any guidance about the timing or content material of its choices regarding the Organization.
Prepayment of Meridian Loan
The Organization has also not too long ago pre-paid the outstanding mortgage of roughly $13.three million to Meridian Credit Union . The mortgage was secured by its greenhouse in Pelham, Ontario, as nicely as linked interest and administrative fees. Meridian is arm’s-length to the Organization and this loan represented the Company’s only secured indebtedness.
CannTrust is a federally regulated licensed producer of healthcare and recreational cannabis in Canada. Founded by pharmacists, CannTrust brings a lot of years of pharmaceutical and healthcare encounter to the healthcare cannabis business It serves healthcare sufferers with its dried, extract and capsule goods.
Company’s Harvest Facility
The Organization operates its Niagara Perpetual Harvest Facility in Pelham, Ontario. CannTrust prepares and packages its solution portfolio at its manufacturing centre in Vaughan, Ontario. The Organization has also bought 81 acres of land in British Columbia. And expects to safe more than 240 acres of land in total for low-expense outside cultivation which it will use for its extraction-primarily based goods.
Supply CannTrust Holdings Inc.