A day after revelations that Health Canada had seized unlicensed cannabis CannTrust Holdings Inc. was growing in Ontario, a Danish company said it sold some of that illegal pot to its patients.
A Denmark-based medical cannabis company said Tuesday that it had received a number of batches of pot from CannTrust and after investigating, found that one was from part of the unlicensed CannTrust grow. Stenocare A/S said in a statement that the illegally exported batch was small, the company has placed it into quarantine and it would not affect its patients access.
CannTrust and Health Canada did not immediately respond to a request for comment.
The Canadian Cannabis Act forbids the export of unlicensed cannabis and says anyone who does so is guilty of an indictable offence and liable to imprisonment or fines.
On Monday, CannTrust said that Health Canada, the federal government agency responsible for licensing and inspecting facilities, has seized more than five metric tons of cannabis that it said was harvested in unlicensed rooms. CannTrust further voluntarily held more than seven metric tons of pot.
To put the holds in context, according to its May financial results, CannTrust said it had produced nearly 10 metric tons of pot and sold roughly three metric tons, during the prior three-month quarter.
Medical patients will experience temporary product shortages, as a result of the hold CannTrust said, while it figures out what to do about not having enough pot. It’s not clear what the financial impact will be until Health Canada completes its testing.
According to several investors, the Ontario Cannabis Store has removed three CannTrust products Tuesday, all of which are cannabis flower. The site still lists CannTrust pre-rolled joints for sale. CannTrust’s website also lists several products that are temporarily unavailable.
The Ontario Cannabis Store did not immediately return a request for comment.
Chief Executive Peter Aceto said the company had made errors in judgment, “but the lessons we have learned here will serve us well moving forward.” The company is planning to step up employee training, to retain external advisers to review its compliance processes and other procedures, he said.
Additional reporting by Ciara Linnane.