Health Canada has ruled a greenhouse operated by CannTrust Holdings non-compliant, pushing the company to hold more than 12,000 kilograms of inventory, according to a Canadian Press report.

The agency determined that the company had provided inaccurate information about its Pelham, Ontario greenhouse and placed an inventory hold on about 5,200 kilograms of cannabis flower harvested in the rooms in question. CannTrust placed its own voluntary hold on 7,500 kilograms of equivalent flower products at its Vaughan, Ontario facility that had been produced using flower from the Pelham greenhouse.

The rooms received a license in April, but the company said the flower was grown at the facility from October 2018 to March while it had applications pending for the rooms with Health Canada.

According to a Financial Post report, Health Canada is performing quality inspections on the products at the Pelham facility and those results are expected in 10 to 12 business days. CannTrust indicated there would be a shortage of its products while the agency performs its checks.

Peter Aceto, CEO of CannTrust, told the Financial Post that the company was working with Health Canada “to make this right.”

“We made errors in judgement, but the lessons we have learned here will serve us well moving forward,” he said in the report.

CannTrust is publicly traded on the New York Stock Exchange and fell 22.47 percent at the end of trading on Monday. The overall financial losses will not be known until regulators complete their investigation.

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