Another CannTrust Holdings facility found in violation of regulations
Bad news for one of Canada’s biggest cannabis companies. CannTrust Holdings was previously found in violation of some growing restrictions at one of its facilities in Ontario, and now here comes news that the company has messed up again. Investigators have found another issue at another facility, also in Ontario, including five rooms being used for storage without approval, and two other areas newly constructred also used in unapproved ways. Additionally, the facility was found to have lax security, and inadequate quality assurance services. It certainly sounds like CannTrust is just being messy — in the frantic rush to develop production and get product out the door, the company is apparently cutting corners and racking up violations.
That’s not great, and the company’s stock price has reflected its mistakes so far — the stock has fallen to 1/5 of its former value back in April of this year. The company’s CEO was fired back in July, and the current interim CEO has reportedly promised to offer a plan to Canada’s regulatory agencies to get things back on track. CannTrust is also reportedly exploring a possible sale, but at this point, any potential buyer would probably want to see some improvement in terms of these violations. Certainly there’s a lot of growth to be had and money to be made in the cannabis market, but if this company can’t follow the rules, the game could be over for them before it even really gets started.