CannTrust Holdings Inc.’s licence to produce and sell recreational and medical cannabis in Canada was suspended by federal regulators on Tuesday, the latest blow to the beleaguered pot firm after an inspection uncovered that it grew thousands of kilograms of marijuana in unlicensed rooms.

CannTrust said in a statement that it received notice from Health Canada earlier Tuesday morning that it won’t be able to sell and produce cannabis, other than cultivating and harvesting existing plants.

“While the suspension remains in effect, CannTrust will be permitted to cultivate and harvest existing lots or batches previously propagated, as well as conducting ancillary activities to those lots, including drying, trimming and milling. During the suspension, CannTrust may not propagate new lots or batches of cannabis or engage in the sale or distribution of cannabis,” the company said in a statement.

CannTrust added the notice from Health Canada states the regulator could reinstate its licences “if the reasons for the suspension no longer exist or if CannTrust demonstrates that the suspension was unfounded.” The Vaughan, Ont.-based company said its management and board are reviewing the notice with its counsel and other advisors.

CannTrust said federal regulators listed several measures that the firm could implement, which would address the various public health and safety risks that contributed to Health Canada’s partial suspension.


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Those measures include controlling the cannabis that comes in and out of the company’s facilities, ensuring that marijuana will be produced and distributed in authorized areas, recovering pot that was grown in unauthorized areas, improving employees’ knowledge and compliance with the law
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