VAUGHAN, ON, July 16, 2021 /PRNewswire/ - CannTrust
Holdings Inc. ("CannTrust" or the "Company") (unlisted) announced
today that its Fourth Amended & Restated Plan of Compromise,
Arrangement and Reorganization dated July 7, 2021 (the
"CCAA Plan") was sanctioned by the Ontario Superior Court of
Justice (the "Court") in connection with the Company's
restructuring proceedings under the Companies' Creditors
Arrangement Act (the "CCAA").
Implementation of the CCAA Plan remains subject to a number of
conditions, including the U.S. Approval Order being entered in the
U.S. Class Action and the expiration of applicable appeal periods.
CannTrust expects the conditions to be satisfied and implementation
of the plan to occur in three to five months, or in the fourth
quarter of 2021.
"Having the CCAA Plan sanctioned is another significant
milestone in our CCAA journey and we are pleased to have made
progress towards plan implementation." said Greg Guyatt, Chief Executive Officer at
CannTrust. "While we are eager to complete the plan implementation,
our operational focus continues to be on surprising and delighting
our consumers with quality products for those who want and need
them."
As previously disclosed, CannTrust anticipates announcing the
engagement of a replacement independent auditor during the third
quarter of 2021 and has initiated discussions with the Ontario
Securities Commission (the "OSC") about proposing a plan and
timetable for curing the Company's historical disclosure defaults.
Following the engagement of a replacement auditor, the Company
anticipates submitting an application to the OSC for a
discretionary order revoking the OSC's cease-trade order dated
April 13, 2020 and seeking a new
listing for CannTrust's common shares on a Canadian stock exchange.
Although those discussions remain at a preliminary stage, CannTrust
is working towards the completion, filing and mailing of its
audited financial statements for 2020 and 2021 during the second
quarter of 2022. Resolving CannTrust's historical disclosure
defaults will require a considerable amount of management time and
expense and there can be no assurance that the Company will be
successful in obtaining an order from the OSC or obtaining a
listing for CannTrust's common shares.
CannTrust has made progress on its objective to fully restore
its operations as a Canadian recreational and medical cannabis
producer. In late 2020, CannTrust relaunched two recreational
cannabis brands in the Canadian market, liiv and SYNR.G, and
introduced a new medical cannabis brand, estora medical in early
2021. Recreational products are now available in six provinces,
while medical products are available nationwide. Since relaunch,
the company has expanded its product portfolio and now offers vapes
and pre-rolls in addition to its dried flower, oil and capsule
products. The company continues to remain focused on the future and
is planning for additional product launches in the latter half of
2021.
Aspects of the ongoing efforts remain confidential, and the
Company is unable to predict with any certainty either their timing
or outcome. For more information about CannTrust's CCAA
proceedings, please visit: www.ey.com/ca/canntrust.
About CannTrust
CannTrust is a federally regulated licensed cannabis
producer. We are proudly Canadian, operating a portfolio of brands
including estora, Liiv and Synr.g, specifically
designed to surprise and delight patients and consumers.
At CannTrust, we are committed to providing an exceptional
customer experience, as well as consistent and quality
products through standardized processes. Our
greenhouse produces Grade A cannabis flower, with products
currently being sold in dried flower, pre-roll, vape,
oil drops and capsule formats. Founded in 2013, our continued
success in the medical cannabis market and subsequent expansion
into the recreational business, led to us being named Licensed
Producer of the Year at the Canadian Cannabis Awards
2018.
CannTrust is committed to research and
innovation, investing in developing technologies for new
products in the medical, recreational, and wellness markets, while
contributing to the growing body of evidence-based research
regarding the use and efficacy of cannabis.
Learn more at www.canntrust.com.
Forward-Looking Statements
This press release contains "forward-looking information" within
the meaning of Canadian Securities laws and "forward-looking
statements" within the meaning of the
United States Private Securities Litigation Reform Act of
1995 and other applicable United
States safe harbor laws, and such statements are based upon
CannTrust's current internal expectations, estimates, projections,
assumptions and beliefs and views of future events.
Forward-looking information and forward-looking statements can
be identified by the use of forward-looking terminology such as
"believes", "expect", "likely", "may", "will", "should", "intend",
"anticipate", "potential", "proposed", "estimate" and other similar
words, including negative and grammatical variations thereof, or
statements that certain events or conditions "may", "would" or
"will" happen, or by discussions of strategy.
The forward-looking information and statements in this news
release include statements relating to the expectation that the
U.S. Approval Order will be entered into the U.S. Class Action,
appeals will not be brought forward during the applicable appeal
periods, the CCAA Plan will be successfully implemented in three to
five months or in the fourth quarter of 2021, CannTrust will
announce a successor auditor during the third quarter of 2021,
obtain a discretionary order revoking the cease-trade order and
obtain a stock exchange listing for its common shares.
Forward-looking information and statements necessarily involve
known and unknown risks, including, without limitation: the outcome
of the Company's contingent liabilities; the impact of any
regulatory and other investigations; the Company's ongoing review
of strategic and financing alternatives; risks associated with
general economic conditions; adverse industry events; loss of
markets; future legislative and regulatory developments in
Canada, the United States and elsewhere; the state of
the cannabis industry in Canada
generally; the willingness of a public accounting firm to accept an
engagement as the Company's independent auditor; CannTrust's
ability to timely cure its disclosure defaults and obtain an order
revoking the OSC's cease-trade order; the willingness of a stock
exchange to list the Company's common shares and CannTrust's
ability to satisfy the requirements of such exchange; and, the
ability of CannTrust to successfully implement its business
strategies.
Any forward-looking information and statements speak only as of
the date on which they are made, and, except as required by law,
CannTrust does not undertake any obligation to update or revise any
forward-looking information or statements, whether as a result of
new information, future events or otherwise. New factors emerge
from time to time, and it is not possible for CannTrust to predict
all such factors. When considering these forward-looking
information and statements, readers should keep in mind the risk
factors and other cautionary statements in CannTrust's Annual
Information Form dated March 28, 2019
(the "AIF") and filed with the applicable Canadian securities
regulatory authorities on SEDAR at www.sedar.com and filed as an
exhibit CannTrust's Form 40-F annual report under the United States
Securities Exchange Act of 1934, as amended, with the United States
Securities and Exchange Commission on EDGAR at www.sec.gov (the
"March 2019 Form 40-F"). The risk
factors and other factors noted in the AIF could cause actual
events or results to differ materially from those described in any
forward-looking information or statements. Readers are also
reminded that CannTrust remains in default of its periodic
disclosure requirements under applicable securities laws and stock
exchange requirements, that its most recent AIF, Form 40-F and
other disclosures do not reflect all risk factors that currently
face the Company, and that the Company has not completed or filed
the restatements of the financial statements included in the AIF or
the March 2019 Form 40-F or otherwise
filed an amendment to such Form 40-F, and that the Company has
determined not to correct its prior filings or make any further
filings in respect of periodic disclosure requirements under
applicable securities laws and stock exchange requirements. None of
the Company's securities is listed for trading on any stock
exchange in any jurisdiction and, in Canada, trading in the Company's securities is
subject to a cease-trade order issued on April 13, 2020 by the Ontario Securities
Commission for CannTrust's failure to comply with its disclosure
obligations under applicable securities laws.
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SOURCE CannTrust Holdings Inc.