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Former execs of Canadian cannabis producer CannTrust acquitted in ‘quasi-criminal’ case

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Three former executives of Canadian cannabis producer CannTrust, including its ex-CEO, have been acquitted of all charges after the case collapsed this week.

The charges came from a nearly two-year joint investigation by the Ontario Securities Commission (OSC) and Royal Canadian Mounted Police (RCMP) after a whistleblower alerted Canada’s cannabis regulator in 2019 about five “unlicensed” cultivation rooms the company had been operating since 2018.

Peter Aceto, the company’s CEO at the time of the alleged incidents, had been charged with fraud and making false or misleading statements to the OSC and to the market, among other purported infractions.

Mark Litwin, formerly a director of the company, and Eric Paul, a former CannTrust chair, faced fraud and insider trading charges, among others.

The charges under the Securities Act (Ontario) had been described as “quasi-criminal” by the OSC.

The Financial Post newspaper reported that a key witness had testified a week earlier in the Ontario Court of Justice that he was mistaken about using the term “unlicensed” to describe “noncompliant” cannabis growing areas in the company’s Pelham greenhouse.

The key witness’ confusion over the terms “unlicensed” and “noncompliant” apparently caused the OSC to concede there was no reasonable prospect of conviction.

However, the company itself said in a 2019 news release that it grew cannabis “in unlicensed rooms,” and Canada’s federal cannabis regulator, Health Canada, also had said some of the rooms used in the company’s greenhouse were “unlicensed.”

A lawyer for one of the defendants presented as evidence a Nov. 9, 2018, license covering “the entire Pelham greenhouse,” the Financial Post reported, which was reportedly within documents seized by the OSC.

CannTrust’s federal licenses, including the one covering the Pelham greenhouse, were suspended for about nine months starting in September 2019.

‘Law seems to be against you’

CannTrust, now called Phoena Holdings, did not immediately respond to MJBizDaily queries for comment.

Justice Victor Giourgas said he was persuaded to acquit the three former executives based on the law and the arguments of the defense attorneys, the Financial Post reported.

The newspaper reported that the justice had rejected the OSC’s attempt to withdraw the charges.

“The law seems to be against you,” the justice reportedly told the OSC lawyers.

In a statement to MJBizDaily, the OSC said it’s considering the implications of the decision and assessing its options “in light of the significant investor losses following the issuance of CannTrust’s press release on July 8, 2019.”

In that news release, CannTrust stated that it received a “noncompliant” rating from Health Canada “based on observations by the regulator regarding the growing of cannabis in five unlicensed rooms and inaccurate information provided to the regulator by CannTrust employees.”

“Growing in unlicensed rooms took place from October 2018 to March 2019 during which time CannTrust had pending applications for these rooms with Health Canada,” the company said at the time.

‘No unlicensed growing’

Scott Fenton and Michelle Psutka, counsel to Litwin, said in a statement to MJBizDaily that their client conducted himself lawfully and ethically during his tenure as a member of CannTrust’s board.

“There was no credible evidence that he knew about unlicensed growing at CannTrust and the trial evidence conclusively proved that no unlicensed growing ever took place,” they said in a statement issued on behalf of Litwin.

“Mr. Litwin looks forward to vindicating his good reputation and erasing the stain caused by this ill-founded prosecution.”

In the statement, Litwin thanked the OSC for dismissing the changes as unprovable.

Gerald Chan, who, along with Paul Le Vay, has been representing Paul, said the former chair earned a reputation as a leader with integrity over a distinguished business career.

“That reputation was unfairly tarnished by a misguided prosecution,” the lawyers said in a statement to MJBizDaily.

“Mr. Paul maintained from the beginning that when the evidence was revealed, it would show that he had done nothing wrong. That evidence has now emerged, and Mr. Paul has been declared innocent.

“We are thrilled that he has been fully and finally vindicated.”

Legal representatives for Aceto, the company’s former CEO, did not immediately respond to MJBizDaily‘s request for comment.

Health Canada still says ‘unlicensed’

In an email to MJBizDaily late Thursday, Health Canada said it hit CannTrust with “critical observations” and a noncompliant rating after an unannounced inspection on June 17, 2019, at the Pelham facility.

“The critical observations were for conducting unauthorized activities, namely producing cannabis in unlicensed rooms before obtaining approval from Health Canada, providing false and misleading information to inspectors during the course of the inspection, and inadequate record keeping,” a Health Canada spokesperson wrote.

Health Canada said that producing cannabis in “unlicensed” rooms had been considered “noncompliant” with federal regulations governing the industry at that time, because federal license holders were required to receive federal approval before making changes to a production-site plan.

Health Canada used the word “unlicensed” to describe the rooms in question.

But in 2020, the federal regulator notified cannabis production licensees they were no longer required to submit such an amendment for review and approval by Health Canada.

Health Canada stated that ensuring the integrity of the legal cannabis production system is a priority for the Canadian government.

“That is why the federally regulated system contains multiple measures that are designed to protect the health and safety of Canadians and the integrity of the system,” the spokesperson wrote.

“These measures include stringent requirements for physical and personnel security, record keeping, inventory controls and reporting that are verified through Health Canada inspections and other regulatory oversight activities.”

Fenton, who has been representing Litwin, told MJBizDaily that the Health Canada statement regarding the “unlicensed” rooms “is factually and legally incorrect.”

Source: https://mjbizdaily.com/former-execs-of-canadian-cannabis-producer-canntrust-acquitted-in-quasi-criminal-case/

Agriculture & Life Sciences

Canada’s Cannabis Industry Urges Government to Support Growing Export Market

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BuzzBuzz Cannabis Business News — 24 November 2025

Canada’s cannabis sector is calling on federal and provincial governments to recognize its fast-growing export potential and extend the same support other regulated industries receive. Industry leaders warn that Canada is losing its early global advantage due to slow regulatory processes, lack of trade promotion, and limited access to government-backed financing.

Canada’s medical-cannabis exporters now generate more than half a billion dollars annually and ship products to major markets including Germany, the UK, Australia, and Poland. Despite this, cannabis remains largely absent from Canada’s official trade and export strategies.

Industry Calls for Streamlined Export System

Paul McCarthy, President of the Cannabis Council of Canada, says the country has everything required to dominate the global medical cannabis trade—except government alignment.

“Our requests are simple,” McCarthy said. “Expedite Health Canada’s export-permit process, integrate cannabis into federal export programs like Global Affairs Canada trade missions and CanExport, and ensure provinces include cannabis in their export strategies.”

He stressed the need for mutual recognition agreements with importing countries to eliminate redundant testing and documentation. Access to Export Development Canada (EDC) and Business Development Bank of Canada (BDC) services also remains off-limits to cannabis exporters, placing them at a steep disadvantage.

“This industry does not just need permission to operate,” McCarthy added. “It needs to be treated like every other legitimate contributor to Canada’s trade objectives.”

Competitors Are Moving Faster

McCarthy warns that while Canada pioneered medical cannabis standards, other countries are rapidly advancing with more flexible and export-friendly systems.

“Faster approvals, lower compliance costs, and active government-backed strategies are helping other nations catch up,” he said. “Canada’s regulatory friction is already costing us global market share.”

Export permits currently must be issued for each shipment—a process that can take weeks—and Canadian testing standards often differ from international requirements, forcing companies to repeat expensive compliance checks.

High Tide CEO: Canada Needs a National Export Strategy

Raj Grover, CEO of High Tide Inc., says Canada risks surrendering its leadership if policymakers remain inactive.

“Canada developed the world’s most advanced cannabis regulatory system and contributed $76.5 billion to GDP since legalization,” Grover said. “But without a National Cannabis Export Strategy, we will lose ground to Australia, Israel, Portugal, and other emerging competitors.”

He noted that Canada’s industry table created by Innovation, Science and Economic Development Canada (ISED) has not met in more than a year—an opportunity wasted.

Grover urged the federal government to introduce domestic GMP certification and potency standards to streamline international market access. “Canadian producers must currently get GMP approval country by country. It’s duplicative and costly. Canada should be setting global benchmarks, not chasing them.”

Germany: A Key Market for Canadian Firms

High Tide recently expanded into Europe with its majority acquisition of Germany’s Remexian Pharma GmbH, giving the company a direct import and distribution channel in Europe’s largest medical-cannabis market.

“Our German strategy is already structured for success,” Grover said. “Through Remexian, we can supply premium medical cannabis at the lowest possible price, helping meet Germany’s quality and cost demands.”

Grover also warned that U.S. companies are already purchasing Canadian firms to stage their own international expansion—another sign that Canada’s leadership position is slipping.

Government Response Remains Limited

In response to industry concerns, a Global Affairs Canada spokesperson said the Trade Commissioner Service “continues to support exporters of cannabis for medical and scientific purposes that have obtained Health Canada permits.”

However, industry leaders argue that this support is minimal and does not include key tools such as trade missions, export credits, or bilateral agreements that other sectors routinely receive.

A Closing Window of Opportunity

With medical-cannabis exports already exceeding $500 million annually, industry executives say Canada must act quickly to preserve its competitive edge.

As McCarthy warns, without coordinated government support, Canada risks losing high-value pharmaceutical manufacturing, research investments, and thousands of skilled jobs.

And as Grover’s expansion into Germany demonstrates, the industry is moving forward—but whether Canada moves with it may determine if the country remains a global leader or becomes a pioneer that let others capitalize on its breakthroughs.

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A Tipping Point for Cannabis: President Trump Champions CBD & Cannabis Science on Truth Social

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When the President of the United States shares a video about the life changing potential of hemp derived CBD on his personal social media platform, it is more than news, it is a cultural shift.

For decades our government lied to us about cannabis. It demonized the plant, waged war on its users, and filled prisons while allowing pharmaceutical companies to flood the nation with addictive and deadly drugs. For over a century we have been fighting uphill, not just for legalization, but for truth, for science, and for the right to heal ourselves naturally.

Now in 2025, the most powerful political figure on Earth is using his own voice and platform to talk about the endocannabinoid system and the science backed benefits of CBD. That is monumental. It is validation for everyone who has fought, been arrested, been silenced, and been dismissed for telling this truth. The President’s video post is already being described as a pivotal moment in cannabis history, and President Trump CBD Cannabis Science Truth Social is trending across platforms as advocates celebrate the breakthrough.


The Science Behind the Endocannabinoid System

The video begins by introducing something most people, including many doctors, still know little about, the endocannabinoid system. Discovered in the 1990s, the ECS is a network of receptors and signaling molecules that works as the body’s master regulator, coordinating communication between major systems like the nervous, immune, cardiovascular, and digestive systems.

The roots of this discovery go back much further. CBD was first isolated in 1940 by American chemist Roger Adams, but it was Dr. Raphael Mechoulam, an Israeli organic chemist, who fully elucidated the chemical structure of CBD and identified its stereochemistry in the 1960s. His pioneering work not only opened the door to modern cannabinoid science but also earned him the title “Godfather of Cannabis Research.” It was this foundation that led to the identification of the endocannabinoid system itself decades later, revealing how cannabinoids interact with our physiology on a fundamental level.

The ECS is now widely recognized as a vital part of human biology, with extensive research supported by the National Institutes of Health. When functioning properly, the ECS acts like the conductor of an orchestra, ensuring every section plays in harmony. As we age, the system weakens. That imbalance is linked to inflammation, chronic pain, cognitive decline, sleep problems, and many other conditions associated with aging.

Mainstream medicine often addresses these issues with pharmaceutical band aids, dangerous and addictive drugs that treat symptoms rather than root causes. Lifestyle changes such as diet and exercise help, but they only partially support the ECS and do so slowly over time.


Hemp Derived CBD: A Game Changer for Aging

Here is where the science gets exciting. As the video explains, the ECS can be restored much more quickly with hemp derived CBD. Strengthening this system naturally helps the body regain balance, reducing pain, improving sleep, lowering stress, slowing disease progression, and even extending healthy lifespan.

It is not theoretical. One in five seniors is already using CBD to manage pain, arthritis, cancer symptoms, sleep disorders, Alzheimer’s, and more. Despite decades of research and acknowledgment from institutions like the National Institutes of Health, most physicians receive no training on the ECS. There are still no FDA standards for CBD products on the market. If that were the case for any other class of medicine, it would be considered malpractice.

The World Health Organization has confirmed CBD’s excellent safety profile and non addictive nature in its critical review report. The result is that millions of older Americans are suffering unnecessarily when a safe and natural solution exists.

Hemp derived CBD is a powerful first step in restoring balance to the endocannabinoid system, but it is only part of the picture. Research shows that full spectrum cannabis extracts, which include a broader range of cannabinoids and terpenes, can work even more effectively. Complete concentrated cannabis oil, containing the full spectrum of natural endocannabinoids, may deliver the most profound results for certain patients. Expanding access to these therapies will be essential if we want to unlock the full healing potential of this plant.


The Economic and Social Impact

The video cites a powerful figure. A PricewaterhouseCoopers analysis estimates that fully integrating cannabis into the healthcare system could save the United States nearly 64 billion dollars annually. These savings reflect reduced pharmaceutical dependency, fewer hospitalizations, improved chronic disease outcomes, and enhanced quality of life for aging Americans. You can read more about PwC’s research on healthcare innovation here.

It is a financial argument, but it is also a moral one. Why should our elders endure pain, anxiety, and cognitive decline when nature has given us tools to help them live longer, happier, and healthier lives?


A Call to Action: Finish What the Farm Bill Started

The message concludes by crediting the 2018 Farm Bill, championed by President Trump, for legalizing hemp and laying the groundwork for today’s CBD market. The Farm Bill was just the first step.

Now the call is for bold next moves.

  • Educate doctors about the endocannabinoid system
  • Include CBD under Medicare coverage
  • Provide clear federal standards for CBD quality and dosing

These steps would constitute the most significant senior health reform in modern history, one that would transform aging and cement a powerful legacy for any administration that makes it happen.


What This Means for Future Cannabis Medicine

For those of us who have been in the cannabis community for decades, this is not just another news story. It is a signal that our movement is winning. A conversation that was once criminalized and censored is now being amplified by the President of the United States on his own platform.

It means the science is undeniable. It means the truth can no longer be buried. It means the wall of prohibition is cracking, not just legally, but culturally, scientifically, and politically.

It also means that everything we have been fighting for at 420 Magazine since 1993, education, access, healing, and justice, is finally moving full steam ahead. The President Trump CBD Cannabis Science Truth Social moment is proof that science and policy are finally converging.

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New Mexico cannabis operator fined, loses license for alleged BioTrack fraud

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New Mexico regulators fined a cannabis operator nearly $300,000 and revoked its license after the company allegedly created fake reports in the state’s traceability software.

The New Mexico Cannabis Control Division (CCD) accused marijuana manufacturer and retailer Golden Roots of 11 violations, according to Albuquerque Business First.

Golden Roots operates the The Cannabis Revolution Dispensary.

The majority of the violations are related to the Albuquerque company’s improper use of BioTrack, which has been New Mexico’s track-and-trace vendor since 2015.

The CCD alleges Golden Roots reported marijuana production only two months after it had received its vertically integrated license, according to Albuquerque Business First.

Because cannabis takes longer than two months to be cultivated, the CCD was suspicious of the report.

After inspecting the company’s premises, the CCD alleged Golden Roots reported cultivation, transportation and sales in BioTrack but wasn’t able to provide officers who inspected the site evidence that the operator was cultivating cannabis.

In April, the CCD revoked Golden Roots’ license and issued a $10,000 fine, according to the news outlet.

The company requested a hearing, which the regulator scheduled for Sept. 1.

At the hearing, the CCD testified that the company’s dried-cannabis weights in BioTrack were suspicious because they didn’t seem to accurately reflect how much weight marijuana loses as it dries.

Company employees also poorly accounted for why they were making adjustments in the system of up to 24 pounds of cannabis, making comments such as “bad” or “mistake” in the software, Albuquerque Business First reported.

Golden Roots was fined $298,972.05 – the amount regulators allege the company made selling products that weren’t properly accounted for in BioTrack.

The CCD has been cracking down on cannabis operators accused of selling products procured from out-of-state or not grown legally:

Golden Roots was the first alleged rulebreaker in New Mexico to be asked to pay a large fine.

Source: https://mjbizdaily.com/new-mexico-cannabis-operator-fined-loses-license-for-alleged-biotrack-fraud/

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