CannTrust to destroy 60 million euros worth of cannabis

CannTrust will have to destroy its cannabis inventory (plants and crops) worth 60 million euros, following the various scandals that have plagued the company. These assets were not legal under the cannabis cultivation license issued by Health Canada. Their destruction is the only way for the company to have any hope of regaining its license.

Health Canada has, in fact, suspended CannTrust's license last month, after discovering that the company was growing cannabis on unlicensed premises in Ontario. Health Canada issued a non-compliance rating for the facilities and ordered CannTrust to submit a corrective action plan in August, one month after the company was forced to place more than 12 metric tons of inventory on hold. The Danish company StenoCare was forced to quarantine oils derived from cannabis grown at CannTrust’s facilities. CEO Peter Aceto and President Eric Paul had to resign.

Robert Marcovitch, who was appointed interim CEO in August, said that the recovery plan not only addresses the compliance issues raised by regulators but «will also create a world-class compliance environment for the future.».

The inventory to be destroyed includes products returned by patients, distributors, and retailers. The company stated that it could neither process the products nor sell them to another licensed producer, as its license suspension allowed it only to cultivate plants it had already begun growing and prohibited it from selling or transferring any products.

CannTrust said it would submit a comprehensive corrective action plan to regulators by October 21.