VAUGHAN, ON, Sept. 17, 2019 /CNW/ – CannTrust Holdings Inc. (“CannTrust” or the “Company”,TSX: TRST, NYSE: CTST) announced that it received late this morning a Notice of Licence Suspension (the “Notice”) below section 64(1) of the Cannabis Act (Canada). The Notice cites the Company’s earlier non-compliance with particular needs of the Cannabis Act (Canada) and the regulation created thereunder (the “Cannabis regulations”) in respect of the matters that the Corporation has been discussing with Wellness Canada.
The Notice states that Wellness Canada has suspended CannTrust’s authority to generate cannabis, other than cultivating and harvesting, and to sell cannabis. As such, the Notice constitutes a partial suspension of the Company’s licence for normal cultivation and a complete suspension of its licences for normal processing, health-related sales, cannabis drugs and study issued below the Cannabis regulations. Whilst the suspension remains in impact, CannTrust will be permitted to cultivate and harvest current lots or batches previously propagated, as properly as conducting ancillary activities to these lots, such as drying, trimming and milling. Through the suspension, CannTrust could not propagate new lots or batches of cannabis or engage in the sale or distribution of cannabis.
The Notice states that Wellness Canada will reinstate CannTrust’s licences below section 64(four) of the Cannabis Act if the causes for the suspension no longer exist or if CannTrust demonstrates that the suspension was unfounded. The Notice also states that Wellness Canada considers that implementation of the following measures could potentially address the public overall health and security dangers that contributed to Wellness Canada’s selection to concern the Notice:
- Measures to guarantee that cannabis will be developed and distributed only as authorized, such as measures to manage the movement of cannabis in and out of CannTrust’s web-site
- Measures to recover cannabis that was not authorized by CannTrust’s licence
- Measures to boost essential personnel’s information of, and compliance with the provisions of the Act and the Regulations that apply to CannTrust and,
- Measures for enhancing the manner in which records are kept, such as a strategy to boost the inventory tracking, and any interim measures to guarantee that details offered to Wellness Canada can be reconciled.
The Company’s management and Board of Directors are reviewing the Notice with the Company’s counsel and other advisors.
More than the previous two months, the Corporation has moved swiftly to assess and address Wellness Canada’s issues, such as regions of operational non-compliance. The Corporation remains committed to becoming in complete regulatory compliance.
This press release includes “forward-seeking information” inside the which means of Canadian Securities laws and “forward-seeking statements” inside the which means of the United States Private Securities Litigation Reform Act of 1995 and other applicable United States secure harbor laws, and such statements are primarily based upon CannTrust’s present internal expectations, estimates, projections, assumptions and beliefs and views of future events. Forward-seeking details and forward-seeking statements can be identified by the use of forward-seeking terminology such as “believes”, “expect”, “likely”, “may”, “will”, “should”, “intend”, “anticipate”, “potential”, “proposed”, “estimate” and other equivalent words, such as adverse and grammatical variations thereof, or statements that particular events or circumstances “may”, “would” or “will” take place, or by discussions of approach.
The forward-seeking details and statements in this news release contain statements relating to the corrective actions becoming taken by the Corporation and Wellness Canada’s determinations. Forward-seeking details and statements necessarily involve recognized and unknown dangers, such as, with out limitation: actions taken in respect of the Company’s merchandise by its prospects and regulators final results of Wellness Canada’s investigation, such as any additional orders and compliance measures essential by Wellness Canada and their effect on the operations, inventory, assets and monetary situation of the Corporation the Company’s implementation of remediation plans and connected actions regulatory approval dangers related with basic financial circumstances adverse sector events loss of markets future legislative and regulatory developments in Canada, the United States and elsewhere the cannabis sector in Canada typically and, the capability of CannTrust to implement its organization approaches.
Any forward-seeking details and statements speak only as of the date on which they are created, and, except as essential by law, CannTrust does not undertake any obligation to update or revise any forward-seeking details or statements, no matter if as a outcome of new details, future events or otherwise. New variables emerge from time to time, and it is not feasible for CannTrust to predict all such variables. When thinking about these forward-seeking details and statements, readers need to preserve in thoughts the threat variables and other cautionary statements in CannTrust’s Annual Details Kind dated March 28, 2019 (the “AIF”) and filed with the applicable Canadian securities regulatory authorities on SEDAR at www.sedar.com and filed as an exhibit CannTrust’s Kind 40-F annual report below the United States Securities Exchange Act of 1934, as amended, with the United States Securities and Exchange Commission on EDGAR at www.sec.gov. The threat variables and other variables noted in the AIF could trigger actual events or final results to differ materially from these described in any forward-seeking details or statements.
The TSX and NYSE do not accept duty for the adequacy or accuracy of this release.
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