B.C. company clarifies, retracts statements about selling cocaine

OTTAWA -

A company from B.C.'s Lower Mainland has walked back statements issued last month after receiving Health Canada approval to produce and sell cocaine under limited circumstances.

The controlled substances licence approved for Adastra Labs does not permit the Langley company to sell cocaine or psilocybin to the general public, according to a retraction and clarification provided Friday.

The company is permitted to produce up to 250 grams of cocaine and 1,000 grams of psilocybin this year, but only for medical and research purposes, which could mean selling the substances to other licence-holders.

A news release from Feb. 22, in which CEO Michael Forbes said Adastra Labs would be evaluating how the commercialization of cocaine for safe supply fits with its business model, contains statements "that should not be relied upon," parent company Adastra Holdings Ltd. said in the retraction.

"For cocaine, under the dealer's licence, Adastra Labs is only permitted to sell to other licensed dealers who have cocaine listed on their licence including pharmacists, practitioners, hospitals, or other holders of the (Controlled Drugs and Substances Act) exemption for research purposes," it added.

Adastra Labs is not currently undertaking "any activities with cocaine under the dealer's licence," and would consult with the provincial government before doing so, the parent company said.

The previous news release raised eyebrows among many in government, including B.C. Premier David Eby and Prime Minister Justin Trudeau, both of whom said they were surprised by the wording.

Another B.C. company, Victoria-based Sunshine Earth Labs, previously announced it is licensed to produce, sell and distribute cocaine as well as MDMA, sometimes known as ecstasy.

The biosciences firm described its aim as bringing “safer supply of drugs to the global market."

Health Canada issued a statement of its own Friday stressing that both Adastra Labs and Sunshine Earth Labs are only allowed to deal with specific controlled substances for "authorized medical and research purposes."

"Health Canada has contacted both companies to reiterate the very narrow parameters of their licence. If the strict requirements are not being followed, Health Canada will not hesitate to take action," the statement said.

The agency also noted the authorization of cocaine for medical and research purposes is not new in Canada, "as some companies have had this substance on their licence for 20-plus years."

Cocaine hydrochloride is sometimes used as a topical anesthetic in surgeries and other medical procedures, according to Health Canada.

With files from The Canadian Press