CannTrust Holdings Inc. says the Ontario government’s cannabis retailer is returning all of the company’s products it has because they do not conform with the terms of its master cannabis supply agreement.
The company says the total value of the products is about $2.9 million.
The move by the provincial retailer comes as CannTrust faces problems with Health Canada.
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.
Health Canada has placed a hold on CannTrust’s inventory including approximately 5,200 kg of dried cannabis and the company has also instituted a voluntary hold of approximately 7,500 kg of dried cannabis equivalent.
CannTrust noted that the Ontario retailer operates independently of Health Canada, which has not ordered a recall on any of the company’s products.