Health Canada notified two cannabis businesses on improper product classification. Organigram Holdings Inc (TSX:OGI) (NASDAQ:OGI) and Indiva Limited (OTCPK:NDVAF) (TSXV:NDVA) improperly classified some of those products as “extracts” rather than “edibles” under the Cannabis Regulations.
Organigram stated: “The company remains of the view that the patent pending products are properly classified as cannabis extracts and compliant with the cannabis regulations, and is assessing its options with its legal advisors. At present, the company has paused production of the products in the current packaging format, pending resolution of the matter.” According to Health Canada’s notification, the company can continue to sell and distribute inventory of the products until May 31, 2023.
Heath Canada has requested that Indiva cease production of Indiva Wild Cherry THC Lozenges and Life Lemon THC Lozenges in their 100 mg, 250 mg and 500 mg THC per package formats.
Indiva stated: “Prior to the launch of the products, the company closely considered the regulatory requirements of the legislation, including with respect to product classification, and conducted substantial research. Consistent with the legislative requirements and the company’s research, the company classified the products as cannabis extracts. Currently, the company has paused production of the products as it consults with its advisors and considers next steps and a potential resolution of this matter. The company may choose to continue manufacturing the products in alternative packaging formats.”
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