The layoffs will be phased in between late October and the finish of 2019.
“This was a challenging choice, but it is crucial that our workforce reflects the present specifications of our enterprise,” stated CannTrust chairman and interim CEO Robert Marcovitch in a statement. “Reducing the Company’s present operating expenditures supports our economic sustainability, and areas us in the greatest position to totally resume production upon the reinstatement of our licenses.”
The layoffs will save CannTrust about $400,000 in month-to-month money savings, the organization says, and will “maximize efficiencies.”
The personnel may possibly be rehired, although, pending whether or not Overall health Canada restores CannTrust’s licence.
“We appear forward to rehiring at that time, and as soon as once again delivering higher-top quality, revolutionary solutions to each our buyers and individuals,” Marcovitch stated.
CannTrust’s troubles started in July, when Overall health Canada located it was expanding cannabis in 5 unlicensed rooms in its 12-space Pelham, Ont., facility. Overall health Canada later located the company’s second facility in Vaughan, Ont., was non-compliant as nicely.
As a outcome, Overall health Canada partially suspended the company’s licence to develop and sell cannabis, and CannTrust destroyed its unauthorized cannabis, fired CEO Peter Aceto, asked chairman Eric Paul to resign, and produced a particular committee to probe the regulation infringements.
The organization has given that turn into an instance of how a licensed producer can swiftly fall in the burgeoning sector.
CannTrust also announced Friday that it has submitted a detailed remediation program to Overall health Canada, which it plans to carry out by the finish of the initially quarter of 2020.
The program facts the actions CannTrust has taken so far and intends to take to get its licence reinstated.
Overall health Canada says in order for that to come about, the organization should make higher handle more than the movement of cannabis in and out of CannTrust’s facility, recover the unlicenced cannabis that was made, and enhance record-maintaining and employees know-how of regulations, amongst other measures.
As aspect of its program, CannTrust says it is carrying out an “expanded complete internal education system,” and has strengthened its governance, accountability and infrastructure.
The organization says it will take measures to recover all of its cannabis from distributors and retailers that has not currently been sold.
“CannTrust is confident that its remediation program addresses all of the compliance difficulties identified by Overall health Canada,” stated Marcovitch.
“The Corporation has currently produced considerable progress in this regard, and is committed to finishing all of the remediation actions outlined in the program, with input from Overall health Canada as acceptable. We think that, taken with each other, these actions will establish a powerful compliance culture that will meet regulatory requirements.”