A Canadian cannabis company initially stated that it had been granted permission to sell cocaine but has since withdrawn its statement.
Adastra Labs, a cannabis company based in British Columbia, announced on February 22 that it had received a license to legally possess, produce, and sell coca leaf, cocaine, and psilocybin after Health Canada, the department responsible for national health policy, granted the company’s approval for an amendment under its controlled substance dealer’s license on February 17.
However, a few days later, the company retracted its initial announcement and issued another press release on March 3 clarifying that although it had been granted a Controlled Substance license by Health Canada, this license did not allow the company to sell coca leaf, psilocybin, or cocaine to the general public.
On the same day, a biosciences company, Sunshine Labs, retracted its previous statement and issued a new update. They clarified that they can’t sell cocaine and psilocybin to the general public and emphasized that only licensed dealers, pharmacists, practitioners, and hospital employees are allowed to purchase these substances.
The initial statement of Adastra caused concerns at the political level.
British Columbia Premier David Eby said he was “astonished” that Health Canada had granted a cannabis company the authority to possess, produce, sell, and distribute cocaine. He stated that allowing commercial sales of hard drugs, including cocaine, is not part of the provincial plan.
Like Eby, Prime Minister Justin Trudeau expressed his surprise over Adastra’s announcement that it had received license amendments from Health Canada to produce and sell cocaine.
Trudeau said that on Friday, March 4, the federal government was working swiftly with Adastra Labs to rectify the misunderstanding caused by the company’s announcement that it planned to commercialize cocaine as part of its business model.
He explained that Adastra Labs did not have permission to sell cocaine on the open market, while Health Canada stipulated that the company could only sell to other license holders and that its license was for scientific and medical purposes only.
In a statement to CBC News Thursday night, Health Canada clarified the parameters for granting the license, saying the company is licensed to sell for scientific and medical purposes only.
“They cannot sell products to the general public,” the federal department highlighted.
The announcement from Adastra Labs regarding the production and sale of cocaine occurred a month after the province of British Columbia had initiated a three-year experimental decriminalization process.
The purpose of this process is to address the opioid overdose crisis, which has resulted in the deaths of thousands of people.
Health Canada reported that there had been 3,556 apparent opioid toxicity deaths between January and June 2022, resulting in approximately 20 deaths per day. Furthermore, since 2016, the number of deaths related to opioid overdose has surpassed 30,000 in Canada, which is more than the combined number of deaths from other major accidental causes.
The province decriminalized the possession of small amounts of cocaine and other hard drugs but not their sale.
This pilot project aims to remove the stigma attached to drug use, which often discourages people from seeking help.
Advocates have been calling for safer drug supplies to be made available to addicts who face a risk of dying due to toxic drug poisoning caused by illicit street drugs.
This would involve providing a regulated supply of drugs that could be consumed under medical supervision, thus reducing the risk of overdose and other associated harms.
The hope is that such a move would encourage addicts to seek treatment and support without fear of criminal prosecution or the potential for fatal consequences.
Under the “Dealer’s Licence” obtained from Health Canada, Adastra is allowed to legally sell cocaine to other license holders who have cocaine listed on their license, such as pharmacists, practitioners, hospitals, or the holder of an exemption for research purposes.
