Hexo Corp. says it is in the procedure of destroying cannabis that was grown devoid of a licence at a facility it acquired in Niagara, Ont., that was part of its purchase of Newstrike Brand Ltd.
The Quebec-primarily based enterprise stated it found in July, quickly following the Newstrike deal closed, that cannabis getting grown in Block B of the UP cultivation facility was not licensed.
Hexo stated it quickly ceased cultivation and production in the unlicensed space and notified Wellness Canada.
“We created them conscious the exact same day that we had been created conscious of the circumstance,” spokeswoman Isabelle Robillard stated Friday. “They had been happy with the corrective measures that we had currently place in spot.”
She stated the enterprise wasn’t fined or had its licence impacted.
Wellness Canada couldn’t be quickly reached for comment.
Robillard said it only disclosed the concern months following discovering the problem because it became conscious of “false details that was getting circulated to harm the reputation of the enterprise.”
“We worked with Wellness Canada, we shut it down quickly and deemed there was no want to disclose at that time,” she stated in an interview.
Hexo said Health Canada inspected the facility in February and created no observations about the space in query, reinforcing Hexo’s belief that it was a licensed space.
“While we are disappointed with what we uncovered, we assume duty for any troubles with UP solutions prior to the acquisition,” Hexo chief executive and co-founder Sebastien St-Louis stated in a news release.
The facility is no longer in operation following Hexo announced on Oct. 24 that it was winding down the Niagara operations as aspect of its downsizing work and cutting 200 jobs, such as the elimination of some executive positions and the departures of the chief manufacturing officer and chief promoting officer.
UP cannabis is now grown at Hexo’s licensed cultivation facility in Gatineau, Que., and at an indoor cultivation facility in Brantford, Ont.
Hexo stated it retains the capability to reopen the Niagara facility should really demand raise.
The cannabis producer is not the 1st to be impacted by unlicensed production.
CannTrust Holdings Inc. has been mired in turmoil considering that it disclosed in July that Wellness Canada had found illicit cultivation in unlicensed rooms at its Pelham, Ont., greenhouse.
The enterprise later terminated its chief executive “with cause” and asked its chairman to resign following the board found new details throughout an internal investigation. Wellness Canada suspended CannTrust‘s licenses to create and sell cannabis in September.
It announced Oct. 25 that as numerous as 140 individuals — roughly one particular quarter of its workforce — was getting laid off though it works to regain its federal licences to sell and create pot.