Health Canada has begun asking some federally licensed marijuana companies to stop selling certain ingestible cannabis products the regulatory agency says are incorrectly classified and labeled as “extracts” rather than “edibles,” MJBizDaily has learned.
The move could cost cannabis businesses millions of dollars, Canadian industry sources say, because the products in question – including some lozenges and chewable extracts – are increasingly popular among consumers.
Executives are puzzled over Health Canada’s timing, especially since some of the products in question have been on the market for years.
The apparent crackdown also comes at a sensitive time for the Canadian marijuana industry, as most publicly traded cannabis producers are still losing money.
From a packaging perspective, the distinction is important because any cannabis product classified as an “extract” has 100 times more allowable THC per package than a product classified as an “edible,” making it more appealing
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