Another cannabis producer with a greenhouse in Niagara has revealed the building was used to illegally grow pot.
Quebec-based Hexo Corp. bought the Beamsville facility from Newstrike Brands earlier this year.
Hexo officials say after the acquisition closed in July, they discovered cannabis was being grown in a room that was not fully licensed.
In a release, officials say they immediately stopped cultivation and production activities in that area known as 'Block B', and all inventory on site was placed on hold and destroyed.
The greenhouse is no longer being used as Hexo laid off 200 people and focused efforts on facilities in Gatineau and Brantford as part of cost-saving measures.
This comes as another grower, CannTrust, has been working on a remediation plan after Health Canada officials say cannabis was illegally grown at the company's Pelham greenhouse.