The layoffs will be phased among late October and the finish of 2019.
“This was a challenging choice, but it is crucial that our workforce reflects the existing needs of our company,” stated CannTrust chairman and interim CEO Robert Marcovitch in a statement. “Reducing the Company’s existing operating expenditures supports our economic sustainability, and locations us in the greatest position to completely resume production upon the reinstatement of our licenses.”
The layoffs will save CannTrust about $400,000 in month-to-month money savings, the business says, and will “maximize efficiencies.”
The workers might be rehired, although, pending whether or not Overall health Canada restores CannTrust’s licence.
“We appear forward to rehiring at that time, and after once more delivering higher-good quality, revolutionary goods to each our shoppers 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-area Pelham, Ont., facility. Overall health Canada later located the company’s second facility in Vaughan, Ont., was non-compliant as properly.
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 made a unique committee to probe the regulation infringements.
The business has due to the fact turn into an instance of how a licensed producer can swiftly fall in the burgeoning business.
CannTrust also announced Friday that it has submitted a detailed remediation strategy to Overall health Canada, which it plans to carry out by the finish of the initially quarter of 2020.
The strategy specifics 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 occur, the business will have to produce 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 understanding of regulations, amongst other measures.
As element of its strategy, CannTrust says it is carrying out an “expanded complete internal education plan,” and has strengthened its governance, accountability and infrastructure.
The business 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 strategy addresses all of the compliance difficulties identified by Overall health Canada,” stated Marcovitch.
“The Business has currently created important progress in this regard, and is committed to finishing all of the remediation actions outlined in the strategy, 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.”