TORONTO, May 5, 2017 /CNW/ - Cronos Group Inc.'s
(TSXV:MJN) wholly owned licensed producer, the Peace Naturals
Project Inc. ("Peace"), was notified on May
4, 2017 by Health Canada that upon testing a random cannabis
leaf sample, trace levels of Piperonyl Butoxide (PBO) were
discovered at 0.78 parts per million (ppm). PBO is an organic
compound known as a synergist.
Peace's root cause analysis indicates that this was the result
of cross-contamination from a sanitation protocol that is no longer
practiced at Peace. The sanitation protocol has not been
practiced since new management implemented an improved production
methodology after taking control of Peace. The source of the
PBO was a PMRA approved product that was used to sanitize empty
rooms between harvests.
There is no evidence to suggest that PBO at these levels is
likely to cause any adverse health effects when inhaled or
ingested. However, out of an abundance of caution, Peace is
in the process of assessing which lots have been impacted,
notifying patients, and will voluntarily recall any products that
have even potentially been implicated.
"Our first priority is the health and safety of our patients. We
take safety testing seriously and are working closely with Health
Canada to determine next steps. We are committed to
demonstrating that Peace and the ACMPR are the global gold standard
for safe, regulated cannabis," says Mike
Gorenstein, Chief Executive Officer of Cronos Group.
Peace does not use unapproved pesticides and is supportive of
Health Canada's initiatives to conduct random testing. Peace
has been proactively pesticide testing its products in addition to
the mandated safety testing required under the ACMPR. After sharing
the results of these tests with Health Canada, Peace is confident
that all products currently available for sale are not impacted and
will not disrupt our provision of safe medicinal cannabis to our
patients.
Peace Naturals was acquired by the Cronos Group in September 2016, replacing prior management, and
has since been issued a Good Manufacturing Practice (GMP)
certification in accordance with the rules governing medicinal
products in the European Union. This is one of the highest
standards a pharmaceutical manufacturer can meet for medicinal
products.
About Cronos Group
Cronos Group, is a geographically diversified and vertically
integrated cannabis company that operates two wholly-owned Licensed
Producers ("LPs") regulated within Health Canada's Access to
Cannabis for Medical Purposes Regulations (the "ACMPR") and holds a
portfolio of minority investments in other Licensed Producers. The
Company's flagship LPs, Peace Naturals Project Inc. (Ontario), and In The Zone Produce Ltd.
(British Columbia) are
collectively situated on over 125 acres of agricultural land and
are currently licensed to produce 2,600 kg of cannabis on an annual
basis. The Company also holds minority equity positions in Whistler
Medical Marijuana and other Licensed Producers. Cronos Group
is focused on building an international iconic brand portfolio,
providing patients with compassionate and personalized care, and
creating value for our shareholders.
Forward-looking statements
This news release may contain "forward-looking information" and
"forward-looking statements" within the meaning of applicable
Canadian securities legislation. All information contained herein
that is not clearly historical in nature may constitute
forward-looking information. Forward-looking statements are
necessarily based upon a number of estimates and assumptions that,
while considered reasonable by management, are inherently subject
to significant business, economic and competitive risks,
uncertainties and contingencies that may cause actual financial
results, performance or achievements to be materially different
from the estimated future results, performance or achievements
expressed or implied by those forward-looking statements and the
forward-looking statements are not guarantees of future
performance. Except as required by law, Cronos Group disclaims any
obligation to update or revise any forward-looking statements.
Readers are cautioned not to put undue reliance on these
forward-looking statements. This news release contains information
obtained by Cronos Group from third parties. Cronos Group believes
such information to be accurate but has not independently verified
such information.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
For more information, please visit www.thecronosgroup.com.
SOURCE Cronos Group Inc.