CannTrust says goods returned by Alberta government cannabis firm worth $1.3M

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VAUGHAN, Ont. — CannTrust Holdings Inc. says its products being returned by Alberta government’s cannabis wholesaler and online retailer total about $1.3 million.

The Alberta Gaming, Liquor and Cannabis agency announced the move on Wednesday after Health Canada suspended CannTrust’s licences to produce and sell pot.

The company says that under the terms of its agreement, the goods may be returned for any reason and it will be responsible for the cost of the goods and all expenses related to the return. CannTrust noted that Health Canada has not ordered a recall in respect of any of the company’s products.

In July, the AGLC placed a hold on its inventory of CannTrust products as a precautionary measure as the federal regulator investigated allegations of unlicensed growing at the company’s Pelham, Ont., greenhouse.

CannTrust disclosed this week it received a notice from Health Canada indicating its authority to produce cannabis, other than cultivating or harvesting existing lots or batches, and to sell pot, had been suspended.

The Ontario government’s cannabis wholesaler and retailer said in August it was returning products valued at roughly $2.9 million to CannTrust.

 

Companies in this story: (TSX:TRST)

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