Cannabis Briefs for September 24, 2019September 24, 2019
•Health Canada has officially suspended CannTrust’s license as a cannabis cultivator and supplier following months of investigation into the company’s history of misleading inspectors, operating without proper licensure, and other misdeeds. As a result, CannTrust is prohibited from making any cannabis sales as well as processing raw product. The company may continue to nurture and harvest crops that are currently planted but may not plant anything more until their license is reinstated. Reinstatement will be contingent on CannTrust demonstrating it has improved compliance and oversight, including measures to recover distributed but non-compliant product and improved record keeping.
•Daytrip Beverages, a line of CBD sparkling water, is expanding distribution to New York and New Jersey, its first markets on the East Coast. Launched in June, Daytrip comes in Tangerine, Cherry, Lemon Lime, and Coconut Pineapple flavors, all 5 calories and infused with 10-mg. of CBD a 12-ounce can. Based in Berkeley, California, Daytrip also distributes to California, Oregon, Michigan, and Washington, with a suggested retail price of $60 a 12-pack. Daytrip plans to launch a THC beverage in California by the end of the year.
•The FDA has launched a criminal investigation into the recent outbreak of vaping-associated respiratory problems that has sickened more than 500 people and left eight dead. While precise causes of the outbreak remain unknown, signs point to black-market THC products, possibly those containing vitamin E acetate, which can harm the lungs if it’s underheated and doesn’t fully vaporize before being inhaled. As such, the FDA’s investigation is reportedly focusing on the supply chain as the agency seeks to understand the source of these products. The health scare is already impacting the market, with some major retailers halting vape sales entirely.
•Harvest Health and Recreation, a multi-state operator based in Phoenix, Arizona, announced that company president Steve Gutterman is leaving the company for personal reasons. Board member Frank Bedu-Addo is also leaving the company to focus on other business endeavors. Harvest, which continues to be led by Steve White as CEO, has begun a search to replace Bedu-Addo.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.