CannTrust’s Danish partner quarantines more pot connected to unlicensed rooms

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TORONTO — CannTrust Holdings Inc.’s Danish partner says it has quarantined more medical pot products linked to illegal cultivation at the Canadian cannabis company’s greenhouse, and warned of possible shortages in Denmark as a result.

Stenocare says it has received documentation that shows that five batches of the Danish company’s inventory originated in growing rooms that did not have government approval. The products have been isolated and blocked from being sold until the authorities have completed their investigation.

The company added that “most, yet not all” of the CannTrust products in its inventory and that it has supplied to the Danish market since June 10 are linked to the unlicensed cannabis cultivation.

This is a reversal of Stenocare’s comments earlier this week when it said only one “very small” batch was connected to the unlicensed growing, which Health Canada continues to investigate.

CannTrust said Monday it had been notified by Health Canada that the regulator had discovered unlicensed cultivation at its Ontario greenhouse between October 2018 and March 2019, before the five rooms received the appropriate licences in April 2019.

It said as a result, Health Canada put on hold roughly 5,200 kilograms of CannTrust products from that facility, and the licensed producer put a voluntary hold on an additional 7,500 kilograms of pot products which were also linked.

“As a result of the new information, all products delivered from Stenocare relating to the batches in question will be put in quarantine… The most likely consequences from this new situation is that there will be a temporary shortage of medical cannabis products to the Danish market,” Stenocare said in a statement. “This will have negative financial consequences.”

CannTrust announced a joint venture with Stenocare, that saw it receive a 25 per cent equity stake in the Danish company, in March 2018, and made its first shipment of cannabis oil to Denmark in September 2018.

 

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