VAUGHAN, ON, Sept. 17, 2019 /CNW/ – CannTrust Holdings Inc. (“CannTrust” or the “Company”,TSX: TRST, NYSE: CTST) announced that it received late this morning a Notice of Licence Suspension (the “Notice”) beneath section 64(1) of the Cannabis Act (Canada). The Notice cites the Company’s prior non-compliance with specific needs of the Cannabis Act (Canada) and the regulation created thereunder (the “Cannabis regulations”) in respect of the matters that the Enterprise has been discussing with Overall health Canada.
The Notice states that Overall health Canada has suspended CannTrust’s authority to generate cannabis, other than cultivating and harvesting, and to sell cannabis. As such, the Notice constitutes a partial suspension of the Company’s licence for common cultivation and a complete suspension of its licences for common processing, healthcare sales, cannabis drugs and investigation issued beneath the Cannabis regulations. Whilst the suspension remains in impact, CannTrust will be permitted to cultivate and harvest current lots or batches previously propagated, as nicely as conducting ancillary activities to these lots, like drying, trimming and milling. Through the suspension, CannTrust may perhaps not propagate new lots or batches of cannabis or engage in the sale or distribution of cannabis.
The Notice states that Overall health Canada will reinstate CannTrust’s licences beneath section 64(four) of the Cannabis Act if the causes for the suspension no longer exist or if CannTrust demonstrates that the suspension was unfounded. The Notice also states that Overall health Canada considers that implementation of the following measures could potentially address the public overall health and security dangers that contributed to Overall health Canada’s selection to challenge the Notice:
- Measures to make certain that cannabis will be made and distributed only as authorized, like measures to handle the movement of cannabis in and out of CannTrust’s web site
- Measures to recover cannabis that was not authorized by CannTrust’s licence
- Measures to increase essential personnel’s expertise of, and compliance with the provisions of the Act and the Regulations that apply to CannTrust and,
- Measures for enhancing the manner in which records are kept, like a strategy to increase the inventory tracking, and any interim measures to make certain that info supplied to Overall health Canada can be reconciled.
The Company’s management and Board of Directors are reviewing the Notice with the Company’s counsel and other advisors.
More than the previous two months, the Enterprise has moved swiftly to assess and address Overall health Canada’s issues, like regions of operational non-compliance. The Enterprise remains committed to becoming in complete regulatory compliance.
This press release consists of “forward-hunting information” inside the which means of Canadian Securities laws and “forward-hunting statements” inside the which means of the United States Private Securities Litigation Reform Act of 1995 and other applicable United States protected harbor laws, and such statements are primarily based upon CannTrust’s existing internal expectations, estimates, projections, assumptions and beliefs and views of future events. Forward-hunting info and forward-hunting statements can be identified by the use of forward-hunting terminology such as “believes”, “expect”, “likely”, “may”, “will”, “should”, “intend”, “anticipate”, “potential”, “proposed”, “estimate” and other related words, like adverse and grammatical variations thereof, or statements that specific events or situations “may”, “would” or “will” occur, or by discussions of tactic.
The forward-hunting info and statements in this news release incorporate statements relating to the corrective actions becoming taken by the Enterprise and Overall health Canada’s determinations. Forward-hunting info and statements necessarily involve recognized and unknown dangers, like, devoid of limitation: actions taken in respect of the Company’s goods by its consumers and regulators outcomes of Overall health Canada’s investigation, like any additional orders and compliance measures expected by Overall health Canada and their effect on the operations, inventory, assets and economic situation of the Enterprise the Company’s implementation of remediation plans and associated actions regulatory approval dangers related with common financial situations adverse sector events loss of markets future legislative and regulatory developments in Canada, the United States and elsewhere the cannabis sector in Canada frequently and, the potential of CannTrust to implement its company techniques.
Any forward-hunting info and statements speak only as of the date on which they are created, and, except as expected by law, CannTrust does not undertake any obligation to update or revise any forward-hunting info or statements, regardless of whether as a outcome of new info, future events or otherwise. New things emerge from time to time, and it is not achievable for CannTrust to predict all such things. When contemplating these forward-hunting info and statements, readers ought to maintain in thoughts the threat things and other cautionary statements in CannTrust’s Annual Info Kind dated March 28, 2019 (the “AIF”) and filed with the applicable Canadian securities regulatory authorities on SEDAR at www.sedar.com and filed as an exhibit CannTrust’s Kind 40-F annual report beneath the United States Securities Exchange Act of 1934, as amended, with the United States Securities and Exchange Commission on EDGAR at www.sec.gov. The threat things and other things noted in the AIF could lead to actual events or outcomes to differ materially from these described in any forward-hunting info or statements.
The TSX and NYSE do not accept duty for the adequacy or accuracy of this release.
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