An Ontario based cannabis producer, CannTrust Holdings Inc, has announced their intention to destroy $77 million worth of cannabis, according to the CBC.
Since the legalization of cannabis, CannTrust has been plagued with scandals. The most notable incident occurred on September 17th where the company had its license revoked by Health Canada for producing unlicensed pot.
As well as this, Health Canada froze a significant amount of CannTrust’s stock. The company previously estimated that the impact of this regulation had lost the producer $51 million.
Since then, CannTrust has been on a P.R. crusade in an attempt to repair their tarnished image. Firstly, they fired their CEO. Now, they are hoping that the destruction of $12 million worth of plants and $65 million worth of inventory will remedy their image in the eyes of Health Canada.
CannTrust plan to regain regulatory compliance also includes measures to recover cannabis that was not authorized by CannTrust’s license.
After this announcement, CannTrust’s shares rose 24 percent.
CannTrust will provide a detailed plan to Health Canada on or before Oct. 21.