Health Canada suspends licenses from the cannabis producer Evergreen

by druginc

The health organization Health Canada suspends the licenses of the cannabis producer Evergreen

Canadian (British Columbia) -based cannabis producer Evergreen Medicinal Supply Inc.'s license to grow and sell marijuana has been suspended by federal regulators. According to Health Canada, the rules and possibilities within this Canadian legal marijuana market were not fully complied with by the company.

Health Canada spokesperson Tammy Jarbeau confirmed in an email that the government agency suspended Evergreen's ability to “cultivate, process and sell dried and fresh cannabis, cannabis plants and cannabis seeds” in August after an unannounced inspection leading to a non-compliance order on the part of the company.

“On August 9, Health Canada suspended Evergreen Medicinal Supply's licenses to protect public health and safety, including preventing cannabis from being diverted to the illegal market, as a result of non-compliance with certain provisions of the Cannabis Act and the Cannabis Regulations. ”Said Jarbeau.

The suspension of Evergreen Medicinal is the second time that Health Canada has imposed such an action on a recognized cannabis producer. Earlier this year, Health Canada received the sales license from the Winnipeg-based cannabis producer Bonify Holdings Corp. suspended after it appeared that the company was selling marijuana obtained from illegal sources.

In addition, investors are currently awaiting Health Canada's ruling on what punishment it will impose on CannTrust Holdings Inc., after the regulator discovered that thousands of pounds of cannabis are being grown in unlicensed and unauthorized rooms. Potential fines for CannTrust range from a $ 1 million fine to a suspension or withdrawal of the company's ability to produce and sell legal cannabis in Canada.

Health Canada's Jarbeau said Evergreen had already responded to the license suspension on September 9 and is “working on corrective actions” that will be further reviewed by regulators.

Health Canada inspectors conducted an unannounced inspection at the company's Saanichton, BC plant in April, Jarbeau said. The inspection revealed “a number of critical observations and an overall non-compliant assessment” related to the company's manufacturing practices, record keeping, inventory management and compliance with license controls, Jarbeau added.

The health organization Health Canada suspends the licenses of the cannabis producer Evergreen
Evergreen has a facility of more than 5.700 square feet in Saanichton (source)

Evergreen received his license to sell medicinal cannabis in March 2017 and operated primarily to produce legal weed for other licensed licensed producers.

According to a 2017 press release from the company, Evergreen operates a 5.700 square foot facility in Saanichton - about 20 miles north of Victoria - and had zoned approvals to upgrade its production space to an additional 150.000 square feet of area.

British court documents also show that Evergreen has recently been charged with unpaid rent and an expired lease. Philip Illingworth, who owns the land on which Evergreen operated, said the company owes him $ 425.061 in rent and continued to do business despite the lease expiring at the end of last year.

Justice BD MacKenzie decided in favor of Illingworth in July and ordered Evergreen to leave his facility at the end of August, according to CanLII judicial documents.

Shawn Galbraith, the founder and CEO of Evergreen, did not immediately respond to multiple requests for comment.

Read more on BNN Bloomberg (EN, source) and Mugglehead source)

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