CannTrust Holdings Inc. said Tuesday it received a notice of licence suspension from Health Canada, which has been investigating the cannabis company for allegedly cultivating pot in unlicensed rooms.
The Vaughan, Ont.-based company says the notice it received from the regulator late this morning indicates that Health Canada has suspended its authority to produce cannabis, other than cultivating and harvesting, and to sell cannabis.
The federal regulator found problems at the company’s greenhouse in Pelham, Ont., earlier this year and later raised issues regarding a manufacturing facility in Vaughan, Ont.
In August, the Ontario Cannabis Store pulled $2.9 million worth of CannTrust products from sale, saying that they did not conform with the terms of its master cannabis supply agreement.
Canntrust shares traded as high as $13.45 this past March, and hit $1,86 late Tuesday afternoon .
This story will be updated.