Besieged Canadian cannabis grower CannTrust was notified that a facility was not too long ago deemed noncompliant with a host of federal cannabis regulations – the second important breach at its facilities in just more than a month.

The enterprise mentioned it accepted Well being Canada’s findings, which have been delivered following markets closed Friday.

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

  • 5 rooms have been converted to storage locations without the need of prior regulator approval.
  • Two new locations have been constructed without the need of approval of Well being Canada, 1 of which was made use of to retailer cannabis considering the fact that November.
  • The manufacturing facility had insufficient safety and top quality-assurance controls.
  • Regular operating procedures did not meet minimum needs.
  • Documents or information and facts 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 considering the fact that 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 an additional 30% this week following the enterprise disclosed the most recent breach.

The federal regulator is nonetheless figuring out the suitable 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 mentioned 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 evaluation “strategic options,” such as a achievable sale of the enterprise.