The Company Awaits Approval from Ontario Superior
Court of Justice
VAUGHAN, ON, April 20, 2021 /PRNewswire/ - CannTrust
Holdings Inc. ("CannTrust" or the "Company") (unlisted) today
announced that it has secured a commitment for a
"debtor-in-possession" ("DIP") and CCAA Exit Credit Facility
("Credit Facility") from Cortland Credit Lending Corporation, as
administrative agent for the lenders, subject to certain
conditions, including obtaining approval from the Ontario Superior
Court of Justice (the "Court") under the Companies' Creditors
Arrangement Act (Canada) at a
hearing scheduled for April 30, 2021.
The Credit Facility consists of a revolving loan, under which
repayments and additional drawdowns will be permitted from time to
time, provided that the amounts owing under the Credit Facility
shall not exceed the Borrowing Limit of C$22.5 million. The Credit Facility will have a
term of 12 months, which may be extended for an additional 12
months upon mutual agreement.
The Credit Facility will be secured by a first-ranking security
interest over all assets of CannTrust, subject to certain Permitted
Encumbrances and certain excluded assets and, during the pendency
of the CCAA Proceedings, a first-ranking super-priority DIP
financing charge.
Funds advanced under the Credit Facility will be used to fund
CannTrust's working capital needs and support the restoration of
its operations, so that CannTrust can continue to rebuild
stakeholder trust while delivering quality, innovative products to
its patients and consumers.
CannTrust remains under CCAA protection to facilitate its
efforts to resolve its civil litigation claims and complete its
review of strategic alternatives. Aspects of the ongoing efforts
remain confidential and the Company is unable to predict with any
certainty either their timing or outcome. In the meantime, the
Company's ongoing efforts to complete the restoration of its
operations in the Canadian recreational and medical cannabis
business segments are essential to the Company's focus on
rebuilding its franchise. For more information about CannTrust's
CCAA proceedings or the Credit facility, 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, which is currently sold in dried flower, 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
CannTrust will obtain court approval for the Credit
Facility settle certain civil litigation claims and
emerge from creditor protection under the CCAA. 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 potential regulatory and
other investigations; the Company's review of strategic
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 cannabis industry in Canada
generally; and, the ability of CannTrust to 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.
