Cannabis producer CannTrust Holdings Inc says customers may experience temporary shortages after Health Canada found that its greenhouse facility in Pelham, Ont. is non-compliant with regulations.

The regulator found that cannabis had been grown in five unlicensed rooms between October and March of this year during which time CannTrust was applying for licences and that inaccurate information was provided to the regulator by CannTrust employees.The rooms received licences in April.

The company says that Health Canada has placed a hold on about 5,200 kg of dried cannabis that was harvested in the previously unlicensed rooms in Pelham, until it deems that the company is compliant with regulations. CannTrust has also put a voluntary hold on approximately 7,500 kg of dried cannabis at its Vaughan manufacturing facility that was produced in the previously unlicensed rooms.

“We have made many changes to make this right with Health Canada. We made errors in judgement, but the lessons we have learned here will serve us well moving forward,” said Peter Aceto, chief executive.

Health Canada is conducting quality checks of product samples on hold at Pelham, with results expected in 10 to 12 business days.

CannTrust said the financial impact of the non-compliance will not be known until the regulator completes this testing.

CannTrust stock was down almost 15 per cent at US$4.20 in pre-market trade.