CannTrust to destroy $77 million of plants and inventory, prompting share jump

VAUGHAN, Ont. — CannTrust Holdings Inc. shares shot higher Tuesday after the pot producer announced it will destroy $77 million worth of cannabis plants and inventory as part of its efforts to comply with Health Canada regulations.

The stock closed up 51.7 per cent, or 62 cents to $1.82 in trading on the Toronto Stock Exchange.

The Vaughan, Ont.-based company received a notice of licence suspension in September from the federal regulator indicating its authority to produce cannabis, other than cultivating and harvesting, and to sell pot had been suspended.

The board of directors determined it necessary to destroy $12 million worth of biological assets and about $65 million worth of inventory that was not authorized by CannTrust’s licence, the company said.

CannTrust said it will not challenge Health Canada’s partial suspensions and remains focused on working with the regulator.

The destruction process will free up “much needed capacity” to implement remediation measures and store material that has been grown and processed in accordance with the company’s license since April 5, the company said.

CannTrust said it will implement measures identified by the regulator including ensuring cannabis is produced and distributed only as authorized, and improving record keeping as well as inventory tracking.

“CannTrust is confident that its detailed remediation plan will not only address all of the compliance issues identified by Health Canada, but it will also build a best-in-class compliance environment for the future,” interim chief executive Robert Marcovitch said in a statement.

The company said it will provide a detailed remediation plan to Health Canada by Oct. 21.

Just Posted

Thousands fill City Hall Park for Red Deer Lights the Night

With the flip of a switch, downtown Red Deer was filled with… Continue reading

Central Alberta skiers, snowboarders thrilled for start of season

Central Alberta skiers and snowboarders are finally able to hit the slopes,… Continue reading

CN conductors’ union gives 72-hour strike notice as talks continue

TORONTO — Canadian National Railways conductors, trainpersons and yardpersons have given strike… Continue reading

Auto insurance to climb for central Alberta motorists

It’s going to be tough on many businesses, says local courier company owner

Canada’s Salvation Army testing out quicker tap-and-go option at kettle stations

TORONTO — Canada’s Salvation Army is testing out a new and faster… Continue reading

Your community calendar

Nov. 19 The Mountview Sunnybrook Community Association will hold its AGM at… Continue reading

Man, 66 struck and killed by vehicle in Regina intersection

REGINA — Police in Regina say a 66-year-old man is dead after… Continue reading

Homicide unit investigating after body found in burned SUV in Abbotsford, B.C.

ABBOTSFORD, B.C. — Homicide detectives have been handed the case after police… Continue reading

No winning ticket for Friday night’s $25 million Lotto Max jackpot

TORONTO — There was no winning ticket for the $25 million jackpot… Continue reading

Abortions rights advocates urge Liberals to turn politics into policy

OTTAWA — Prime Minister Justin Trudeau campaigned for re-election on a promise… Continue reading

Impeachment testimony comes from White House budget official

WASHINGTON — House impeachment investigators met in private Saturday with a White… Continue reading

Football brings some peace to Sioux family after suicide

VERMILLION, S.D. — Teenagers Jashawn and Jayton Pease embraced in the end… Continue reading

St. Mark’s Square reopens in Venice, but water remains high

VENICE, Italy — Tourists and residents were allowed back into St. Mark’s… Continue reading

Most Read