Tuesday, March 24, 2020

Health Canada is slowing down on-site field inspections of cannabis facilities until the end of the month amidst the ongoing COVID-19 pandemic, according to a disclosure from beleaguered cannabis producer CannTrust.

Reduced field inspections could slow the pace at which the federal cannabis production regulator issues new licenses and amendments, presenting a new challenge to Canadian cannabis producers already grappling with the unexpected effects of COVID-19.

CannTrust made the announcement in a press release issued after financial markets closed Monday.

“As a precautionary measure for the health and safety of its employees and the community, Health Canada’s Cannabis Directorate is reducing onsite field inspection activities until at least March 31, 2020,” according to the press release.

CannTrust is awaiting Health Canada’s decision to reinstate cannabis licenses at the company’s Ontario facilities, which were suspended after the company was caught growing cannabis in unlicensed areas.

“Health Canada’s response to the COVID-19 pandemic could adversely affect the timing of the Company’s remediation efforts,” warned the CannTrust press release.

Health Canada has not yet responded to Marijuana Business Daily inquiries about potential delays to cannabis licensing activity as a result of the pandemic.

A slowdown in the regulator’s on-site field inspections is unsurprising, said Lucas McCann, a former Health Canada employee, who is now a regulatory expert with cannabis licensing consultancy CannDelta.

“Health Canada’s mandate is, number one, to protect the safety of Canadians and contribute to the betterment of society,” said McCann. “And in this kind of pandemic, an on-site inspection would potentially be putting agents at risk.”

McCann said CannDelta, which represents applicants for federal permits, has found that applications are still moving forward during the ongoing COVID-19 upheaval, albeit at a slower pace.

“Correspondences are taking a little bit more time. And there are a lot of folks that are working remotely as well,” he said. “So things are moving in a positive direction, although we expect things to move a little bit slower.”

For cannabis producers seeking new licenses or amendments from Health Canada, McCann advised patience.

“It does represent a little bit of an inconvenience, but I think it’s for a very good purpose,” he said.

“I would suspect that those that are (undergoing) application review for a new license will still continue to move forward at a relatively reasonable pace. Some on-site inspections for folks looking to amend their licenses, to add additional rooms, or to get a sales license to be able to move product more quickly, some of those may see more substantial delays.”

McCann noted that Ontario cannabis producers have been designated essential workplaces by the Ontario government.

“As such, it’ll probably be necessary for Health Canada, at least the regional offices, I would think, to support those activities to some extent,” he said.

CannTrust’s shares trade on the Toronto and New York stock exchanges.

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additional information, George Scorsis
Originally posted on via Cannabis Industry News

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