CROWN MEETING STYMIES POT CHARGES

Police in Smiths Falls won't lay charges against a medicinal marijuana
company until after investigators meet with federal Crown Attorneys.
Police seized 221 marijuana plants from Carasel Harvest Supply Corp.
Wednesday night after learning the company had started growing medical
marijuana several months ago without the appropriate Health Canada
licence.

"Once we determined there was no licence, this company growing
marijuana was no different than you or I growing it in the basement,"
said Smiths Falls Police Chief Larry Hardy yesterday. "It's illegal."

Hardy said police only became aware that marijuana was being grown in
the old Canadian Tire building from media reports following a Tuesday
city council committee meeting.

JUDICIAL REVIEW FILED

Earlier this week, Carasel found itself at the centre of a legal
challenge to Canada's marijuana laws. On Tuesday, a group of 30
chronically and critically ill patients who rely on medical marijuana
for pain relief filed for a judicial review of Health Canada's policy
restricting who can grow medicinal marijuana.

Toronto lawyer Ron Marzel, who represents the licensed medicinal
marijuana users and Carasel CEO Samantha Klinck, said Health Canada's
policy puts up an "unconstitutional barrier" to medicinal marijuana
access.

Marzel said Klinck was "eager to provide medicine" to the chronically
ill patients, although he was not aware Carasel had already started
growing marijuana while awaiting its licence.

However, Health Canada had notified Carasel in May that it would not
process the company's application to provide marijuana to the patients
since it would be a violation of policy.

Health Canada spokeswoman Aggie Adamczyk said the federal agency has
no intention of entering into any new agreements until their current
contract with Prairie Plant Systems of Manitoba to provide medicinal
pot expires.

FOLLOWING ORDERS

Hardy said police had no choice but to raid the warehouse, regardless
of the ongoing legal issues involving Carasel's potential customers
and the company's dispute with Health Canada over their licence.