Troubled Canadian cannabis company CannTrust Holdings Inc.
said Monday it has received notice from the Ontario Cannabis Store, the Crown corporation in charge of wholesale cannabis distribution to licensed cannabis retailers in the province, and operator of Ontario’s biggest online recreational cannabis store, that some of its products are non-conforming under the master agreement between the two parties. As a result, the OCS is returning product worth about C$2.9 million ($2.2 million). The news sent CannTrust shares down 3.3% in premarket trade. The stock has lost 65% of its value in the last three months, ever since Health Canada seized five metric tons of product after discovering it was growing in unlicensed rooms. The company fired its Chief Executive Peter Aceto for cause and pushed out President Eric Paul, after The Globe and Mail uncovered emails showing management were aware of the unlicensed grow and that some of the illicit cannabis had been exported to Denmark, a breach of Canadian drug laws. Health Canada has since discovered irregularities at another CannTrust facility in Ontario.
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