CannTrust Falls After Announcing Ongoing Investigation Into Health Canada Ruling
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U.S. shares of Canadian cannabis company CannTrust (CTST) - Get Report were falling Monday after the company provided an update into the ongoing investigation by Health Canada that forced it to close its greenhouse facility in Pelham, Ontario.
The company formed a special committee to investigate the compliance report that shut down the facility. CannTrust also said it filed a response to Health Canada on July 17 and it is awaiting the regulatory agency's response.
"The Special Committee takes these issues very seriously and is committed to working with Health Canada to bring the Company into compliance. Although we want to move as quickly as possible, we are mindful of the critical need to be thorough," committee chairman Robert Marcovitch said.
"We are determined to identify the root causes for all non-compliance issues, to take appropriate actions to address and remediate any issues with the Company's compliance culture and to restore trust in the Company."
Earlier in July, Health Canada placed a hold on 5,200 kilograms of dried cannabis that was harvested from five unlicensed rooms at the facility until it deems CannTrust compliant with regulations.
Additionally, CannTrust said that it has instituted a voluntary hold on 7,500 kilograms of dried cannabis that was produced in the unlicensed rooms.