Canopy tells cus­tomers an­other re­call will ‘never hap­pen again’

The Hamilton Spectator - - BUSINESS -

SMITHS FALLS, ONT. — Canada’s largest pub­licly traded mar­i­juana com­pany says it has made “nu­mer­ous process and per­son­nel changes” at its newly ac­quired Met­trum Health op­er­a­tions that will pre­vent a re­peat of last year’s prod­uct re­call.

Prior to the friendly takeover, Met­trum an­nounced a prod­uct re­call in Novem­ber af­ter Health Canada dis­cov­ered the com­pany had used a pes­ti­cide with an undis­closed in­gre­di­ent that’s not ap­proved for use in Canada for use on med­i­cal cannabis.

Canopy Growth Corp., which an­nounced its Met­trum takeover in De­cem­ber and closed the deal on Jan. 31, is­sued an open let­ter Thurs­day telling cus­tomers that “a re­call like this will never hap­pen again.”

Canopy paid $430 mil­lion for Met­trum.

Canopy CEO Bruce Lin­ton said use of un­reg­is­tered pest con­trol prod­ucts was “in­ex­cus­able” but added that Health Canada had de­ter­mined the pes­ti­cide wasn’t likely to cause any ad­verse health con­se­quences. He said Canopy bought Met­trum to in­crease its pro­duc­tion ca­pac­ity to meet grow­ing de­mand for med­i­cal mar­i­juana prod­ucts and, po­ten­tially, other prod­ucts for non-med­i­cal uses.

Lin­ton’s let­ter to Met­trum cus­tomers re­peated pre­vi­ous as­sur­ances to an­a­lysts that Met­trum’s prac­tices would be brought in line with those at Canopy’s Tweed and Tweed Farms op­er­a­tions, which Lin­ton said have never been the sub­ject of a prod­uct re­call.

“This has al­ready re­sulted in nu­mer­ous process and per­son­nel changes, and will be fol­lowed by in­fra­struc­ture mod­i­fi­ca­tions,” Lin­ton said.

“Met­trum has work to do to re­gain cus­tomer and physi­cian con­fi­dence. I be­lieve we have a team in place that is up to the chal­lenge.”

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