The Globe and Mail reports in its Wednesday edition that Health Canada has suspended Canntrust Holdings' cannabis growing and processing licences.
The Globe's Mark Rendell writes that Canntrust must stop planting cannabis immediately, and has 10 business days to appeal the suspension. If an appeal fails, Canntrust could be forced to shutter its greenhouse facility and processing plant until federal regulators decide whether to reinstate or revoke the licences.
The move comes three months after federal investigators discovered Canntrust had grown about $51-million worth of cannabis in unlicensed parts of its facility in late 2018 and early 2019.
The Canntrust scandal has rippled through the industry, denting investor confidence and removing thousands of kilograms of cannabis from the market at a time of shortages in the new legal system.
Canntrust's share price has declined 73.7 per cent since July 5, the last trading day before the company announced it had been rated as non-compliant with Health Canada regulations.
Under the licence suspension, announced Tuesday, Canntrust will be allowed to continue cultivating and harvesting existing batches of cannabis, but cannot plant new batches or sell cannabis.
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