Reuters — Canadian cannabis producer CannTrust Holdings said Monday it would destroy about $12 million worth of plants and about $65 million worth of inventory as part of a plan to regain full regulatory compliance.
Health Canada canceled CannTrust’s license to produce and sell cannabis in September, months after it found the company was illegally cultivating pot.
The inventory to be destroyed will include product returned by patients, distributors, and retailers, the company said in a release Monday.
“Given the status of its licenses, the company is unable to process the material being destroyed or sell it to other licensed producers,” the company said.
Vaughn, Ont.-based CannTrust also said the destruction process will allow it to free up “much needed capacity” to carry out remediation measures and to store material grown and processed since April.
— Reporting for Reuters by Shanti S Nair in Bangalore. Includes files from Glacier FarmMedia Network staff.