Matt Maurer speaks to Marijuana Business Daily about CannTrust's cannabis license suspension by Health Canada
Citing noncompliance with Canada’s federal cannabis law and regulations, embattled producer CannTrust says it has received a Notice of License Suspension from Health Canada.
It is the second cannabis company to have a federal license suspended in recent days.
CannTrust said the notice constitutes a partial suspension of its license for standard cultivation and a full suspension of its licenses for standard processing, medical sales and research.
Matt Maurer of Torkin Manes cannabis law group in Toronto, said Health Canada’s move comes as no surprise to industry watchers.
“Certainly it’s the most significant case of a license being suspended thus far,” he said.
CannTrust’s suspension comes on the heels of another handed down to British Columbia-based Evergreen Medicinal Supply on Aug. 9 over noncompliance with federal law and regulations.
“It signals that none of the licensees are above potentially running into problems. It doesn’t matter how big you are, or how well run you appear to be,” Maurer said.
CannTrust had been considered an industry leader.
Its now deposed former CEO Peter Aceto joined the cannabis company from Tangerine bank, a subsidiary of Scotiabank, last October.
“This was a company that from the outside looked like it was very well run, massive company that had really good things going for it. And then all these things sort of came out of left field, which ultimately resulted in their license getting suspended.”
Maurer said other cannabis companies should think twice about bending the rules.
This article originally appeared in Marijuana Business Daily. Visit Marijuana Business Daily to read the complete article.
In this month’s CannaInvestor Magazine, Matt Maurer discusses the legalization timeline of edibles, topicals and extracts.
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