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Half a Ton of Cannabis Returned for Visible Mold in Canada

Half a Ton of Cannabis Returned for Visible Mold in Canada

As a Nevada cannabis lab testing company, Digipath Labs has a job to ensure that all the cannabis going out to the public for sale is clean of molds and other toxins. When we hear a story like what recently happened to SunDial, it reminds everyone why our purpose in the cannabis industry is so very essential. SunDial Growers Inc. is a Canadian cannabis producer that went public on the stock market on August 1st. Shortly after their introductory public offering, one of their clients, Zenabis Global Inc., returned a half ton of SunDial cannabis for having mold and bits of rubber gloves in it. The total value of the lost cannabis was nearly $2 million.

In its own June-quarter report the same morning, Canadian cannabis company Zenabis Global ZENA, +7.69%  disclosed that it had returned a half ton of pot and terminated its agreement to buy weed from a “third party” that it did not name. People familiar with the matter say that party was Sundial, and Zenabis returned the cannabis because the pot was of poor quality and contained bits of rubber, among other issues.

Massive amounts of marijuana can be lost when a grower does not take the proper precautions right from the beginning of the grow process. All cannabis should be lab tested by a third party to ensure safe quality for consumers, especially when so much is at stake for a publicly traded company.  The state of Nevada mandates all marijuana be tested before it can be sold to the public. Millions of tourists come to Las Vegas throughout the year for a variety of reasons, and now they want to come and try clean marijuana sold at the myriad of dispensaries surrounding the Las Vegas strip.

Initially, after Canada became one of the first industrialized nations to legalize the sale and consumption of cannabis for adults, demand was strong but then plateaued. There are roughly 33 million people living in Canada, which is not a large customer base for cannabis relative to the U.S. and the entire European population. Canopy Growth Corporation, the largest cannabis company in the world, suffered a nearly $300 million loss after overproducing cannabis in the 4th quarter of 2018. The company’s board even felt compelled to terminate the founder, CEO and who many people consider to be the face of the legal cannabis industry, Bruce Linton.

Ensuring the long-term growth of the cannabis industry starts with the safe and clean cultivation of marijuana plants. Cannabis seeds can be tested ahead of time to understand the plant’s phenotypes and then proper growing techniques include having the cannabis tested at different stages. All cannabis derivatives need to be tested and certainly before final sales are made, the cannabis should be tested to make sure it has not been contaminated. Like all mainstream products, cannabis must be be compliant before it is sold to the public or else the industry will develop a poor reputation. Part of the reason the Las Vegas cannabis business is flourishing is because consumers have come to trust that they will only be purchasing the best quality cannabis when they come visit.

Read more at MarketWatch.com.

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