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  • CEN BIOTECH'S BOLD VENTURE: RULING WITH THE LAW

    courtesy Jerry Al Mufleh

    Federal laws and judicial doctrines have allowed a comprehensive approach in legal arbitration. Courts must be able to award judgment based on the merits of the law, and not by underlying opinions and dynamic political environments.

    CEN Biotech's fully constructed marijuana facility has been fully compliant with security measures mandated by Health Canada as well as Lakeshore's own municipal regulations. Yet Tom Bain, the Mayor of Lakeshore radically changed his tone after the completion of the facility. During this time, many Lakeshore legal arbitrators had closed door meetings regarding CEN Biotech's marijuana facility. These discussions have seemingly perpetuated corruption and various violations of municipality laws and regulations. Lakeshore suddenly asked Health Canada to delay license approval for CEN Biotech, in hopes of amending their marijuana municipal zoning regulations from agricultural to industrial, causing CEN Biotech's facility to be in violation of zoning bylaws. Many established lawyers have determined this illegal change in zoning regulations strictly violates acquired doctrine rights of the land and that CEN Biotech had clearly established legal precedent in constructing the facility long before zoning was a concern. In other words, one cannot retrospectively change bylaws to suit new underlying agendas. This is illegal and will not hold much credence in the court of law.

    Common law doctrines provide non-statutory avenues to prevent Health Canada and Lakeshore's underlying agenda from becoming legally binding. A type of doctrine that CEN Biotech may indeed utilize against Health Canada is the "manifest-disregard doctrine," which is similar to the judicial review that CEN Biotech has initiated.

    US LEGAL.COM explains:

    An arbitrator acts with manifest disregard if (1) the applicable legal principle is clearly defined and not subject to reasonable debate; and (2) the arbitrators refused to heed that legal principle. It is a non-statutory ground for vacatur.

    Though this is under United States court law, Canada's judicial review follows the "manifest disregard" terms and regulations. To this end, CEN Biotech has publicly revealed many violations of Health Canada's own rules and regulations regarding MMPR applicants, and the implications are striking.

    On May 3, 2015, CEN Biotech released important email correspondence with Health Canada that document in detail the time sensitive propogation of CEN Biotech's MMPR application.

    Bill Chaaban explains:

    "April 9, 2014 Health Canada surprises CEN and tells them they have to pass security clearance stage before the inspection is scheduled. They also advise it could take months. This was the first CEN heard of this requirement."

    On April 29th, 2014, Health Canada explains to Bill Chaaban:

    (click to enlarge)

    Consequently, once security clearance has been successfully granted, a pre-license inspection would be obtained. It is also important to note that Health Canada asked CEN Biotech to accelerate their build out of the marijuana facility almost 8 months before their pre-license inspection, and yet deliberately took months to process their application.

    On May 12th 2014, Bill Chaaban explains to Todd Cain, Executive Director of Market Development for HC:

    (click to enlarge)

    Bill Chaaban and Health Canada's executive director of market development conversed extensively to implement a systematic approach to successfully obtain MMPR licensure. Both parties have seemingly agreed to adhere to the rules and regulations established by Health Canada's own council. It is perplexing for investors to notice that almost a month after Todd Cain's letter, and Health Canada's request for CEN Biotech to accelerate their build out, that they finally received approval from Health Canada's security council to obtain pre-license inspection.

    On June 5th 2014, Health Canada explains to Bill Chaaban:

    (click to enlarge)

    Almost two months later, CEN Biotech alas obtained their pre-license inspection on July 30th 2014. In this regard, it is feasible to conclude that all security clearance and inspections were successfully completed and, accordingly a license would be imminent within 2-weeks after successful inspection of the facility.

    In an affidavit filed by the government in Allard et al. v. Her Majesty, Health Canada employee Todd Cain explained:

    "Other significant elements of Health Canada's strategy for providing for reasonable access to a quality supply of dried marijuana for medical purposes included providing applicants with "Ready to Build" letters upon the completion of the paper review process, upon request. These letters advise applicants that if they complete their site build as described in their application, if the site is verified by a pre-license inspection, and if security clearances are granted, the applicant's license may be issued."

    Below are the common fundamental steps MMPR applicants undergo to obtain ready to build letters. Please note that security clearances are issued in step 3, subsequently a ready to build letter would be issued in Step 5. Hence, it is indeed peculiar for Health Canada to ask CEN Biotech for another security clearance on April 2014, long after they were issued a ready to build letter on November 2013.

    It is interesting to note that Health Canada swiftly ended their "Ready to Build Letters" process weeks ago, attesting to yet another example of how elusive and corrupt their MMPR program has become. More on this can be found here: No more ready to build letters.

    Yet months of orchestrated attack from various media outlets, particularly Grant Robertson's bizarre publications to tarnish CEN Biotech's reputation caused a political debacle unprecedented in the marijuana investment industry. Opponents and proponents of CEN Biotech were fueled to prove their own theories and ideas. Health Canada began speculating under false pretenses that the very company they asked to accelerate their marijuana build out, would be ironically rejected with no valid basis of action. This is illegal and an injustice to not only CEN Biotech, but many MMPR applicants today.

    CEN Biotech explains:

    "The Minister failed to observe procedural fairness and the principles of natural justice in making her decision by failing to consider that her delegates represented to the Applicant, and the Applicant acted on the representations, that a license would be granted upon completion of the expedited build out and the completion of the pre-license inspection."

    Health Canada must be held accountable for their careless and gross negligence in this program, and are seemingly under heavy scrutiny by the judicial system of Canada. More on this can be found on mmj.today.

    Light at the end of the tunnel

    Yet investors of CEN Biotech have remained hopeful in the chaos from within. Investors have been keen to notice a similar case of corruption by Medical Marijuana of Massachusetts, [MMM] a MJ company that was improperly denied license in 2014. MMM is now a licensed producer, more on this interesting case can be found here.

    Important highlights of the MMM case in relation to CEN Biotech's case can be found on the table below:

    MMM "Manifest Disregard" (Judicial Review)

    CEN Biotech Judicial Review

    MMM appears to argue that an agency's failure [government] to abide by it's own regulatory processes in itself requires that the agency's decision be vacated.

    CEN Biotech has indeed been a victim of a similar pattern of corruption, in which Health Canada has failed to abide by its own rules and regulatory processes and thus should not be rejected for MMPR licensure

    if the agency [government] has acted for reasons that are extraneous to the prescriptions of the regulatory scheme, BUT are related, rather to an adhoc agenda, then that agency has acted arbitrarily because the basis for action is not uniform, in follow, is not predictable

    Health Canada has acted it's decision on the merits of nothing more than corrupt media outlets, orchestrating an agenda to ruin CEN Biotech's reputation.

    the court agreed that the Board [Government] has 'failed' to follow it's own rules"...."there must be some prejudice before an agency's disregard of it's own rules may constitute reversible error". In announcing the rule that a failure to follow regulations will support reversal of agency action when the failure causes PREJUDICE to the plaintiff, the SJC relied on it's prior decision

    Health Canada approved CEN Biotech to construct their facility in a ready to build letter. Furthermore, HC

    because the department failed to follow its own regulation and the failure caused MMM prejudice, the court vacates the Department's notice of 'non-selection'

    Judicial Review of Health Canada's actions merits the court to vacate the rejection decision immediately.

    On page 8 and 9 of the 22 page memorandum of facts of the judge's decision, he detailed the, "..Recurring theme in the negative press coverage", and "there were stories attracted political attention, .... expressing concern". Subsequently leading to the denial of this company's license.

    CEN Biotech has been in constant scrutiny with the Globe and Mail, Grant Robertson, CTV News, Mayor Tom Bain, and others that have destroyed the company's prospects and goodwill. Subsequently, Health Canada denied CEN Biotech's license.

    This is prejudice and a serious gross negligent act of unlawful misconduct.

    An investor of CEN Biotech explains:

    Why is this important? In Canada, a decision of a tribunal, board, commission or other government decision-maker can be reviewed on two standards depending on the circumstances. The two standards applied are: 1) correctness and 2) reasonableness.

    In each case, a court must undertake a "standard of review analysis" to determine what appropriate standard to apply. This approach was described in detail by the Supreme Court of Canada in Dunsmuir v. New Brunswick.

    Therefore, if the standard of review of 'reasonableness' is applied to CEN Biotech, Health Canada engaged and created an expectation for a build-out of the facility, a Ready to Build Letter was issued, and after the Town of Lakeshore acknowledged correct zoning of the facility, the million dollar facility was constructed. Conventional understanding in this case shows strong reasonableness for CEN Biotech to build their facility, further supported by Lakeshore municipality affirming Health Canada's acknowledgment that CEN Biotech was constructing a marijuana facility.

    Investors should note that an inspection would NOT have taken place if other requirements were NOT satisfied, such as screening, enhanced screening, security clearance, zoning, etc. But this case also shows an example of 'moving goalposts', or in other words in the eye of the LAW, prejudice!

    Many investors not limited to CEN Biotech have determined that Health Canada cannot follow their own regulations that would otherwise be predictable for all MMPR applicants. This lack of proclivity has cost CEN Biotech and other MMPR applicants millions in revenue and expenses.

    This seemingly appears the case law is in such that any decision of Health Canada in an adhoc manner would be vacated.

    Under Section 7 of the MMPR Provision, all applicants denied of license or a restriction, must be provided a written report to the merits of the refusal.

    Investors to date have not been able to determine any indication of a Health Canada report, and are seemingly perplexed by the issue. Many believe that CEN Biotech will pave the way for other MMPR applicants to proceed with judicial challenges before Federal Courts against Health Canada.

    Delahunt, CEO of MMM explains:

    "How many lives could have been saved if they administered it in a way [. . .] that wasn't adversarial but involved scrutiny, and people had the option to choose a well-regulated marijuana product, rather than oxytocins that are killing people?"

    CEN Biotech and other MMPR applicants have pondered similar concerns; just how much more out of sync will Health Canada be, before they eventually are blamed for the demise of the entire MMPR program and patients worldwide?

    It is important for the Judicial Review of Canada to rule with full authority and unbiased prejudice in CEN Biotech's license dilemma. Ultimately, the court may find itself attacked if they ignore the injustice against CEN Biotech and lose some modicum of political authority, rendering the entire court system vulnerable to further scrutiny and attacks by various political organizations.

    May 03 11:19 PM | Link | 13 Comments
  • CEN BIOTECH: SO GOOD THEY CAN'T IGNORE YOU

    The pessimistic prognosis of CEN Biotech's MMPR license rejection is far from over. The grossly disorganized and rather debilitating behavior of Health Canada's actions will be under heavy scrutiny in Ontario's Superior Court of Judicial Review. Loyal investors and shareholders of the company have quelled their constellation of worries by disproving the gross misrepresentations with fact based evidence research, much of which has been vastly ignored by Health Canada and the media.

    Though it is still seemingly unclear why Health Canada has rejected CEN Biotech's MMPR licensure, they were quick to bizarrely post their decision on Health Canada's website, an unusual rejection notification no other MMPR candidate had endured.

    This alone can be reasoned to be undue prejudice and possible variances in privacy laws. Why is Health Canada targeting CEN Biotech with such gross prejudice? Are they caving into the misrepresentations from the media opponents with little to no evidence indicating otherwise?

    The Judicial Court Sytem of Canada has a unique advantage to follow this case in an ad hoc approach, scrutinizing all stipulated conditions legally and fairly. Health Canada is not exercising jurisdiction following the merits of its own laws, but rather has digressed substantially to follow false misrepresentations and claims made by media such as Globe and Mail and other competitors of CEN Biotech such as Tilray (a company allegedly been shown to have ties with Globe and Mail journalist Grant Robertson).

    Health Canada Overbooked

    Inherent in the provision that Health Canada has indeed struggled to be proactive with MMPR applicants, the rules and regulations of Health Canada has now gained the attention of many other MMPR applicants that are also unfairly processed. Of note, these past weeks, have been fairly overbearing for Health Canada's MMPR license program. The Allard v. Health Canada case trial has been recognized as a fundamental platform in the interpretation and litigation of the general public being allowed to grow their own private marijuana as opposed to buying a controlled and pharmaceutical grade marijuana from designated licensed facilities. View more on this very interesting case here.

    Investors in awe at Health Canada's irresponsibility

    Investors can not stress enough the significant lack of uniformity between Health Canada and MMPR applicants, so much that Judicial Review of the entire program has been instituted. It would be best to adopt an interpretation that is effectuated by the circumstances arising and to enact on laws that have NOT been deliberately changed retroactively (See Non-Conforming Use Laws). Even more so, the basic assumptions have yet to empirically be examined and identified by the Canadian Administrative Law and the Ontario Court System of Canada.

    CEN Biotech and Lakeshore

    CEN Biotech does not intend to drown Lakeshore with heavy lawsuits pending litigation, but rather to adopt fair and just negotiable amendments to the bylaws that would not interfere with previous applied bylaws used to build their marijuana facility. Moreover, the MMPR candidate has abided by every Health Canada procedural codes and regulations, every municipal zoning parameters, which were ostensibly documented in various Lakeshore council legal contracts, and often exceeded expectations in the marijuana facility's design and function. Investors should realize the law is tantamount to CEN Biotech's success and essentially the main legal binding evidence that has allowed for the construction of the facility in the first place.

    CEN Biotech's latest press release issued on March 16th, 2015 addresses questions and concerns arising from the circumstances surrounding CEN Biotech. The precise guidelines required to obtain licensure were lawfully met, yet ignored by not only the town of Lakeshore, but by Health Canada. Below is an excerpt highlighting important information.

    (click to enlarge)

    The public sees no logical reason why judicial review would not be reckoned with harsh criticism against Health Canada, which has shown a history of bending the law to the point of federal court intervention. This is yet another fine example emulating the corruption and misinformation used by Health Canada to make erroneous and costly decisions at the expense of honest companies such as CEN Biotech. What greatly concerns investors is the sheer fact that Health Canada extended its irrational decisions beyond the obvious prejudice inherent in the vast media by simply ignoring facts and court ordered documents. In other words, the entire lengthy MMPR application (over 900 pages from CEN Biotech costing roughly $20,000 to process), was taken as mere dictum, and seemingly ignored completely by Lakeshore Town Council and Health Canada. Investors are again encouraged to see this video created by a shareholder, explaining the corruption intertwined in this case.

    The most serious concern to such unqualified obeisance is the maneuvering of Health Canada, taking almost one year to respond to CEN Biotech's successful inspection of the facility. The undesirable jockeying by Health Canada for a more favorable law benefiting media and competitors, merits a comprehensive examination of the program, and extensive federal judicial housekeeping.

    Time is of the essence

    Of note, many investors have been alarmed at the unusual time frame of the movant's judicial review application filed on Feb 26th 2014 with the clerk. Health Canada had 10 days to respond to CEN Biotech or face a default motion in favor of CEN Biotech. The deadline was March 3rd 2015 and the proceedings queries website indicated a default motion was being processed. However, the proceedings was suddenly updated TWO DAYS later, on March 5th 2015 that Health Canada "magically" had indeed responded to CEN Biotech, but was never properly delivered on time. Ridiculous. The inequity of this result is bizarre and construing to a corrupt atmosphere that requires federal investigation. Imagine if CEN Biotech had actually filed their motion late, and imagine what type of prejudice Health Canada would have against the company.

    This is exactly why the law is unbiased, and the judicial court system will once and for all, complete with evidence-based research the pieces of this never ending puzzle once and for all. Below is the excerpt from the Proceedings website:

    Investors are looking forward to the judicial review and have remained loyal to the company and its shareholders. Though CEN Biotech is trading at sub-penny levels, many investors are keen to notice that Lakeshore is one of dozens of projects in the company's pipeline, and one that will require patience and proper due diligence. Take no notice in the lies and corruption of the media and allow CEN Biotech to vindicate itself with the most important and relevant platform of all, the law of the Canadian Judicial Court System. Stay tuned.

    Mar 19 11:23 PM | Link | 56 Comments
  • CEN BIOTECH: THE THIN RED LINE

    courtesy Jerry Al-Mufleh

    Brief History of Health Canada vs Federal Courts

    The constitutional validity of Health Canada has again come under heavy scrutiny. The recent federal government sponsored MMPR program has made significant improvements since its transition from a MMAR program, but yet faces inherent risks and challenges for many applicants today. Consequently, fair and appropriate regulation has transformed into a bureaucratic corruptive mechanism, causing unnecessary distress for both Health Canada and applicants. A full appreciation of the gravity of the situation requires a brief history in the transition from the MMAR program to the MMPR program for medical marijuana.

    In 1999, Health Canada initiated a centralized federal medicinal cannabis program largely due to a court challenge by Jim Wakeford, whom required medicinal cannabis to help alleviate his HIV/AIDS symptoms, but was denied access. The Ontario Superior Court readily recognized Mr. Wakeford's legal right to "access cannabis without fear of arrest, and instructed Health Canada to create a process allowing for legal access to this medicine [cannabis]" (See Wakeford v. the Queen, 1999)

    In 2001 the Ontario Court of Appeals struck down Health Canada's Section 56 program as unconstitutional in regards to medicinal marijuana and ordered Health Canada to develop the Marijuana Medical Access Division (MMAD), and implement the Marijuana Medical Access Regulations (MMAR). Almost two years later, Health Canada initiated the MMAR program for medicinal marijuana.

    It was a ruling on Jan 9th, 2003 that the Supreme Court ordered Health Canada to create a readily available supply of cannabis for patients under a contracted company called Prairie Plant Systems (NYSE:PPS).

    On July 8th, 2003, Health Canada introduced the MMAR program to Canada, and had become the second nation in the world to provide a robust system for access to medical grade marijuana via a centralized government sponsored program.

    Yet the MMAR program had many intrinsic problems in regards to its interpretation and limits, and PPS lacked several components to successfully integrate the program into the general public. Furthermore, the degree of rigor involved in controlling production of marijuana and providing access to patients was astonishing, causing many patients in dire need of the medicine to suffer significantly due simply to limited access. In other words, many patients were limited in supply and the unanticipated problems with quality control and management of medical cannabis was proving to be difficult for Praire Plant Systems to handle as one government entity.

    On October 7th, 2003, the Ontario Supreme Court upheld the right for patients to have access to safe, legal source of medical cannabis and again found the federal program under the MMAR as unconstitutional for creating "the illusion of access", as stated by Provincial Judge Lederman.

    Canadian Press:

    "Health Canada is requiring taxpayers and medical cannabis patients to fund inefficient practices, capital upgrades, and equipment for a private contractor [PPS]. Instead of providing affordable medicine to those in need, Health Canada has chosen a policy and program that seemingly creates a windfall for one monopoly supplier to the detriment of patients and taxpayers. While community-based medical cannabis dispensaries provide a cost-effective alternative to Health Canada's centralized monopoly for cultivation and distribution, the end-cost to patients still remains problematic."

    In February 2005 Canadian Press reported that according to Health Canada, 127 of the 278 patients ordering PPS cannabis from the government at the time were in arrears, for a total of $168,879 in unpaid medical cannabis bills. Health Canada responded by sending collection agencies after those in arrears for more than 180 days, cutting off at least 19 authorized users from ordering medical cannabis from the nation's only legal supplier, and forcing these critically and chronically ill Canadians to resort to accessing their medicine from illicit sources

    In 2005, the Canadian Senate Special Committee on Illegal Drugs and the Ontario Court of Appeals suggested that Health Canada readily cooperate with compassion societies (similar to licensed producers) with the goal of improving access to a safe supply of cannabis for patients.

    After significant strides and hurdles, the Government of Canada, ordered Health Canada to provide reasonable access to legal source of marijuana to patients and a drastic change in its MMAR program was implemented. These "compassion societies" existing today, have uniquely been transformed into pharmaceutical grade cannabis facilities under the new Marihuana for Medical Purposes Regulations (MMPR).

    For further interest regarding the historical transition of MMAR to MMPR, please visit the published article here.

    CEN Biotech

    Close examination of the historical context of the MMAR program suggests that Health Canada may indeed require the guidance of the Ontario Court system to address the injustice surrounding CEN Biotech. To this end, the Ontario Court of Canada and the Canadian Senate Special Committee will most likely overturn Health Canada's reluctant demeanor in CEN Biotech's stagnant license delays, and again strike down unjust political drive from some CEN Biotech opponents to help protect honest open trade practices for the future and beyond.

    CEN Biotech makes a strong case

    Investors have become aware that Health Canada has again been increasingly prejudice against CEN Biotech's license approval. The salient purpose of CEN Biotech's facility is to provide patients with high quality medical grade marijuana in one of the most advanced pharmaceutical facilities constructed to date. The recent trend of corruption from Health Canada and the town of Lakeshore amounts to one of the most unprecedented challenges that MMPR applicants such as CEN Biotech face today. In a recent cross-national poll, many believe that Health Canada has been grossly negligent in their relationship with CEN Biotech, and are plagued by corruption in an array of contradicting statements, news leaks to media outlets, and retroactive change in policies (Lakeshore) aimed specifically to prevent CEN Biotech from obtaining licensure. No other applicant to date has been under such heavy attack and contentious critique that engenders a serious discussion among investors, shareholders, patients, and the private sector.

    Investors are rightfully upset, and have taken notice that this corruptive behavior has far-reaching tentacles than just Globe and Mail, and may have tainted even a few Health Canada officials, in a concerted effort to prevent CEN Biotech from obtaining licensure.

    CEN Biotech provides well supported documents

    On February 20th, official court documents surfaced to investors regarding CEN Biotech's proactive action against Health Canada. For more information regarding this particular event, please visit MMJ.TODAY for a detailed discussion regarding the current status of CEN Biotech's license application.

    The ramifications of these documents are paramount to the entire MMPR program. Health Canada has clearly contradicted their proceedings and approvals regarding CEN Biotech's facility. This table aims to focus in part certain documented evidence addressing Health Canada's erratic and seismic shift in opinion.

    (click to enlarge)

    George Routhier, MMPR CONSULTANT

    This begs any competent individual to ponder how would section SS.26, and SS. 38 be an issue subsequent to approval of a ready to build letter? Moreover, at what point did Health Canada show concern regarding the company's zoning issues when inspection was completed successfully? Most importantly, Lakeshore contradicted their own bylaws and retroactively modified their zoning parameters for medical marijuana facilities to specifically steer Health Canada to reject CEN Biotech's application. This is a clear case of a legal non-conforming issue. These questions are substantial to ask any judicial council, and a naive ignorance of the underlying agendas of the laws does not merit approval and is not an pretext for rejection.

    Many notable public figures such as George Routhier, a medical marijuana MMPR consultant has noted that CEN Biotech may just rightfully deserves license as they have been lawfully processed from the initial stages of the application to the end. He explains:

    What's Next?

    CEN Biotech has constantly developed the intuition to communicate across all barriers and obstacles. Health Canada has reluctantly refused to communicate with CEN Biotech as of August 2014, yet were readily available to release private important information to Globe and Mail with no regard to contacting CEN Biotech before media outlets obtained information.

    Professionalism, honesty, service, and compassion are lifelong personal satisfactions that become a source of strength for many successful companies. It is these very values that have driven and motivated CEN Biotech to surpass any obstacle and strive to give Canada their undivided concentration and care. It is also these qualities that have attracted such a powerful versatile board of directors and reach global trade agreements with countries around the world.

    CEN Biotech is sensitive to the sentiments of the political agenda from various competitors and only wish for a code of conduct that is fair and just use of practice. The true mission of CEN Biotech is to provide service to patients, and inspire others to develop the resilience necessary to withstand the failures and frustrations of adverse circumstances. In short, it is my belief that the Federal Courts of Canada will undoubtedly provide a swift decision that emulates the fair and just practices of the past, while providing much needed guidance to Health Canada in their application process for qualified applicants such as CEN Biotech.

    Feb 22 12:15 PM | Link | 75 Comments
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