Health Canada suspends licence of Winnipeg cannabis producer Bonify

Health Canada has suspended the sales licence ofWinnipeg-based cannabis producer Bonify.

The federal agency barredBonify Medical Cannabis from selling cannabis on Monday due to safety and public health concerns.

"The department found that Bonify Medical Cannabis was possessing, distributing and selling product that was purchased from an illegal source, and selling product that did not comply with the good production practices as required under the Cannabis Act andcannabis regulations," Health Canada spokesperson Eric Morrissette said in a statement.

The case has been forwarded on to the RCMP and Canada Revenue Agency, said Morrissette.

The announcement comes after Health Canada issued a recall on two Bonify strainsin December over contamination concernson products sold in Saskatchewan.

The Liquor, Gaming and Cannabis Authority of Manitoba, which regulates the cannabis retail sector, and the Manitoba Liquor and Lotteries Corporation, thewholesaler of cannabis in the province, followed suitand suspended the sale of Bonify products.

A third-party investigationfound the company sold unauthorized productatretailersin Saskatoon, Regina and Moose Jaw.

The investigator alleged senior managers of threatenedstaff members to look the other way when 200 kilograms of unlicensed cannabis arrived at the Winnipeg facility.Three Bonify executiveswere subsequently dismissed.

The company has 10 days to respond to the suspension and give Health Canada a reason to reconsider.

Health Canada plans to monitor whatever actions Bonify takes to rectify the non-compliance issue.

"Health Canada will continue to undertake unannounced inspections of cannabis licence holders to help ensure that they are in compliance with the law and regulations," Morrissette said in a statement.

"Health Canada is disclosing thislicensing decision as part of its ongoing commitment to openness and transparency. The department publishes information on its inspection and enforcement activities so thatCanadians can see how industry follows the rules put in place to protect their health and safety."

CBC News tried to contact BonifyTuesday night for a response but did not hear back.