Ontario Cannabis Regulator Returns Nearly $3M In Noncompliant Product To CannTrust
CannTrust Holdings Inc (NYSE:CTST) said Monday that it was informed by the regulatory body for cannabis in Ontario some of its products are not up to par.
What Happened
The Ontario Cannabis Store is the government-run crown corporation that oversees wholesale distribution of cannabis products to licensed retailers in the province.
The regulatory body determined that some of its products are "non-conforming" under the terms of the company's master cannabis supply agreement.
The OCS returned these products to CannTrust.
The OCS' decision is independent of Health Canada's recent determination that some of CannTrust's products were produced in unlicensed facilities. To date, Health Canada has not ordered a recall for any of its products, CannTrust said.
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Why It's Important
CannTrust said the products that were returned represent "all or substantially all" of its products held at the OCS and have a value of $2.9 million.
What's Next
CannTrust reaffirmed its commitment to comply with Ontario's Master Agreement.
The stock was down 3.81% at $2.02 at the time of publication Monday as investors digested a fresh round of concerning news headlines.
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