Besieged Canadian cannabis grower CannTrust was notified that a facility was lately deemed noncompliant with a host of federal cannabis regulations – the second important breach at its facilities in just more than a month.

The enterprise stated it accepted Well being Canada’s findings, which have been delivered soon after markets closed Friday.

Heath Canada’s July 10-16 inspection of the Vaughan, Ontario, facility located:

  • 5 rooms have been converted to storage regions devoid of prior regulator approval.
  • Two new regions have been constructed devoid of approval of Well being Canada, one particular of which was made use of to retailer cannabis because November.
  • The manufacturing facility had insufficient safety and high quality-assurance controls.
  • Normal operating procedures did not meet minimum needs.
  • Documents or data have been not retained to allow the regulator to full its audit in a timely manner.

CannTrust’s stock has been in a tailspin on the Toronto and New York stock exchanges because a whistleblower alerted Well being Canada to unlicensed cultivation at its greenhouse in Pelham, Ontario, more than a month ago. The company’s shares fell additional than 30% in the wake of these revelations.

CannTrust’s shares have fallen yet another 30% this week soon after the enterprise disclosed the most recent breach.

The federal regulator is nevertheless figuring out the proper compliance and enforcement action for the Pelham, Ontario, regulatory violations.

Well being Canada advised the enterprise it could not supply any guidance about the timing of that selection, CannTrust stated in a news release.

In the previous month, the enterprise halted all adult-use and health-related sales, fired its senior leadership, and faces a probe by securities regulators and police.

CannTrust also hired a economic adviser to critique “strategic options,” such as a doable sale of the enterprise.