Besieged Canadian cannabis grower CannTrust was notified that a facility was not too long ago deemed noncompliant with a host of federal cannabis regulations – the second considerable breach at its facilities in just more than a month.

The business mentioned it accepted Well being Canada’s findings, which have been delivered immediately after markets closed Friday.

Heath Canada’s July 10-16 inspection of the Vaughan, Ontario, facility discovered:

  • 5 rooms have been converted to storage locations devoid of prior regulator approval.
  • Two new locations have been constructed devoid of approval of Well being Canada, one particular of which was utilised to retailer cannabis considering that November.
  • The manufacturing facility had insufficient safety and excellent-assurance controls.
  • Regular operating procedures did not meet minimum needs.
  • Documents or details have been not retained to allow the regulator to full its audit in a timely manner.

CannTrust’s stock has been in a tailspin on the Toronto and New York stock exchanges considering that a whistleblower alerted Well being Canada to unlicensed cultivation at its greenhouse in Pelham, Ontario, more than a month ago. The company’s shares fell additional than 30% in the wake of these revelations.

CannTrust’s shares have fallen a further 30% this week immediately after the business disclosed the most recent breach.

The federal regulator is nevertheless figuring out the acceptable compliance and enforcement action for the Pelham, Ontario, regulatory violations.

Well being Canada advised the business it could not supply any guidance about the timing of that choice, CannTrust mentioned in a news release.

In the previous month, the business halted all adult-use and healthcare sales, fired its senior leadership, and faces a probe by securities regulators and police.

CannTrust also hired a monetary adviser to critique “strategic options,” which includes a feasible sale of the business.