CannTrust Back in Business After Health Canada Reinstates Cannabis Licenses

Global News

With the ongoing pandemic, cannabis businesses have faced their own set of struggles. They have ranged from the closing down of their businesses to the banking reform act. It started with the cannabis businesses considered as “essential businesses” in some states, to demanding COVID-19 relief funds. However, with the ongoing struggles, the suspension of CannTrust added extra pressure on the company to cope during a time like this.

The suspension of CannTrust cannabis licenses

Nine months ago, long before the coronavirus outbreak, the Ontario producer was hit with delays over judicial and regulative violations. However, now one of CannTrust’s facilities had the reinstatement of their federal cannabis licenses.

In September 2019, Health Canada took the action of legally suspending the cannabis licenses that were possessed by CannTrust. They held the cannabis licenses for their Niagara and Vaughan sites. The organization took this legal action due in light of the disagreement of CannTrst with the legal Cannabis Act and regulative measures.

CannTrust was operating grow rooms in 2019. As the grow rooms had no valid license, Health Canada had sent in a noncompliant rating to CannTrust in 2019, prior to the suspension. However, the company was the recipient of creditor protection in March. The Ontario Superior Court of Justice had taken this action under the Companies’ Creditors Arrangement Act.

However now, nine months later after the suspension, Health Canada has focused on the Niagara facility. According to the recent actions taken, the conventional cultivation and processing of permits for the Niagara facility has been resumed legally.

The federal health department had contacted Marijuana Business Daily over email to comment on this issue. They said that ever since the suspension of the cannabis licenses, HealthCanada has thoroughly undergone the reviewing of the information that CannTrust Inc. had given in. This information was essentially in relation to its Pelham site. However, Health Canada had continued that the organization has further observed the steps that CannTrust has taken in acknowledgment of the suspension. Health Canada added that that leaves them convinced enough to reinstate the issuance of cannabis licenses.

Regulative measures


There were restrictions and regulations that followed after the reinstatement of the CannTrust Niagara licenses. Health Canada has added the following –

  • There must be notable variations in staff.
  • There must be a proper implementation of controls, rules, and operations. This will lessen the risks that were originally the cause of the earlier suspension.
  • There must be an amendment in recordkeeping.
  • The staff should have to undergo extensive coaching. This will be an attempt to eliminate further risks, and for proper education and work environment.

CannTrust had to face evident struggles after the earlier suspension. Hence, the company has decided to be extremely careful with the possession of recently reinstated licenses. Their actions include the prompt initiation of their services at the Niagara facility.

However, despite the attempts to return to normalcy, the company has been unable to give a tentative date or time frame for the availability of their products. Furthermore, the company reportedly explained in a news release that they are still dependant on Health Canada as they await a reply. The response was regarding the submission that Health Canada received from CannTrust for the reinstatement of cannabis licenses in their Vaughan Manufacturing facility.

Furthermore, the court went on further with the issuance of an order. The order aimed at the sanction and regulation towards CannTrust to take certain actions. Although a regulative measure, it intended the undertaking of a sale and investment-solicitation method. The shares of the Canadian cannabis generator were further removed from the New York Stock Exchange and the Toronto Stock Exchange. This took place in April and May respectively.

Saher Asad Mir: