CannTrust says approximately C$2.9M of products found OCS non-conforming
CannTrust Holdings has received a notice from the Ontario Cannabis Store, the Crown corporation in charge of wholesale distribution of cannabis products to licensed cannabis retailers in Ontario and the operator of Ontario's online recreational cannabis store, advising the company that the OCS has determined certain of the company's products sold to the OCS are Non-Conforming Products under the terms of the Master Cannabis Supply Agreement between the company and the OCS and that the OCS has elected to return these products to the company. Under the terms of the Master Agreement, any product that does not comply with applicable law is considered to be Non-Conforming Product and the OCS may elect to exercise its right, among others, to return such product to the company at the company's expense. The products listed in the OCS return notice constitute all or substantially all of the company's products currently held at the OCS and are valued at approximately C$2.9M in the aggregate. The company intends to fully perform its obligations under the Master Agreement. The OCS operates independently of Health Canada. Health Canada has not ordered a recall in respect of any of the company's products.