CannTrust Holdings Inc. announced 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.
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. 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.