Adam Wookey, 28, of Toronto, CEO of The Izms and Purepillz, was freed on $5,000 bail after an afternoon court appearance where he was charged with trafficking a controlled substance, the Canadian Broadcasting Corp. reported.
Wookey, whose next court appearance was set for March 27, was ordered to shut down his websites associated with The IZMS and Purepillz within 10 days.
Sgt. Dave McKenzie, who is investigating the case, said Wookey was arrested in Hamilton because police there were the first to investigate the company's synthetic pot products beginning last November when they started becoming popular in the region.
"It proliferated very quickly throughout Ontario," McKenzie said.
The CBC noted synthetic marijuana does not contain any real cannabis. It's made of herbs sprayed with man-made hallucinogens.
Royal Canadian Mounted Police Sgt. Ken Cornell said not all forms of synthetic marijuana have been categorized as Schedule II controlled substances by Health Canada because they react differently in the body, the CBC said.
"This is likely where importers/users are trying to argue that their substances are unregulated," Cornell said in an emailed statement to the CBC last month.
"Also confusion may come into play with police departments or detachments that are aware of some of the typical synthetic cannabinoids being declared and others not."
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