Health Canada suspends licence for one of the country's largest cannabis companies

One of the country’s largest cannabis producers is facing a suspension from Health Canada.

In July, CannTrust Holdings was forced to quarantine nearly 13,000 kilograms of cannabis after an inspection discovered the company was growing in rooms that had to be approved by Health Canada.

On Tuesday, Sept. 17, CannTrust announced 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.

However, while the suspension is in effect, CannTrust will be permitted to cultivate and harvest existing lots or batches of cannabis, as well as conducting activities to those lots, including drying, trimming and milling.

The news predictably caused CannTrust stock to plummet even further on the Toronto Stock Exchange, where it now sits $1.70 a share after peaking this year at $13.45 in March.

Health Canada has also mandated that CannTrust take steps to recover cannabis that was not authorized by the company’s original production licence.

CannTrust does have a couple of opportunities to have its licence reinstated if it can prove the original reasons for the suspension were unfounded or the company demonstrates the reasons for the suspension no longer exist.