The bad news for CannTrust (CTST) - Get Report keeps rolling in after the Alberta Gaming, Liquor and Cannabis Commission returned "all or substantially all" of the company's products held by the regulatory body.
The cannabis products returned to CannTrust are valued at approximately $1.3 million. The AGLC's decision came a couple of days after Health Canada partially suspended the company's growing and selling license due to prior issues with unauthorized growing.
The AGLC is the province of Alberta's overseer of the gaming, liquor and cannabis industries. It provides licenses for retailers and monitors the supply of cannabis in the province.
Under the agency's order, CannTrust said, the Vaughan, Ontario, company cannot produce or sell new cannabis, but is allowed to cultivate and harvest existing lots of cannabis and "[conduct] ancillary activities to those lots, including drying, trimming and milling."
Health Canada could reinstate CannTrust's licenses if the company comes back into compliance or can demonstrate that the suspension is unfounded, the company said.
In July, the company fired CEO Peter Aceto and dismissed President Eric Paul amid reports that the two executives knew of illegal pot-growing activities at one of the company's facilities.