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 “Debtor in Possession” (“DIP”) Commitment and Exit Credit Facility under the CCAA (“credit”) of Cortland Credit Lending Corporation, as administrative agent for the lenders, subject to certain conditions, including obtaining the approval of 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 additional repayments and drawdowns will be permitted from time to time, provided that amounts due under the credit facility do not exceed the borrowing limit of 22.5 million Canadian dollars. The credit facility will have a term of 12 months, which may be extended for an additional 12 months by mutual agreement.
The Credit Facility will be secured by a first ranking charge on all assets of CannTrust, subject to certain Permitted Charges and certain Excluded Assets and, during the pendency of the CCAA proceedings, a DIP super financing charge top priority.
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 confidence while offering innovative products and of quality to its patients and consumers.
CannTrust remains in CCAA protection to facilitate its efforts to settle its civil claims and complete its review of strategic alternatives. Aspects of ongoing efforts remain confidential and the Company is unable to predict with certainty their timing or outcome. In the meantime, the Company’s continued efforts to complete the restoration of its operations in the Canadian recreational and medical cannabis business segments are critical to the Company’s focus on rebuilding its franchise. For more information on CannTrust’s CCAA proceedings or credit facility, please visit: www.ey.com/ca/canntrust.
CannTrust is a Federally Regulated Licensed Cannabis Producer. We are proudly Canadian and operate 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, quality products through standardized processes. Our greenhouse produces Grade A cannabis flowers, which are currently sold in the form of dried flowers, oil drops and capsules. Founded in 2013, our continued success in the medical cannabis market and subsequent expansion into the recreational sector led to us being named Licensed Producer of the Year at the 2018 Canadian Cannabis Awards.
CannTrust is committed to research and innovation, investing in the development of technologies for new products in the medical, leisure and wellness markets, while contributing to the growing body of evidence-based research regarding the use and efficacy of cannabis.
Learn more about www.canntrust.com.
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 laws. United States safe harbor laws, and such statements are based on CannTrust’s current internal expectations, estimates, projections, assumptions, beliefs and opinions about future events.
Forward-looking information and forward-looking statements can be identified by the use of forward-looking terms such as “believes”, “expects”, “likely”, “may”, “will”, “should”, “should”. intention”, “anticipate”, “potential”, “proposed”, “estimate” and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions “could”, “would” or “will” will occur, or through discussions of strategy.
Forward-looking information and statements in this press release include statements relating to the expectation that CannTrust will obtain court approval for the credit facility settle certain civil 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, United States and elsewhere; the cannabis industry in Canada in general; and CannTrust’s ability to implement its business strategies.
All forward-looking information and statements speak only as of the date they are made and, except as required by law, CannTrust undertakes no obligation to update or revise any forward-looking information or statements, whether either 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 of these factors. When reviewing such forward-looking information and statements, readers should keep in mind the risk factors and other cautionary statements contained in CannTrust’s Annual Information Form dated March 28, 2019 (the “Annual Information Form”) and filed with the applicable Canadian securities authorities on SEDAR at www.sedar.com and filed as an exhibit CannTrust’s Annual Report on Form 40-F 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 (there “March 2019 Form 40-F”). The risk and other factors disclosed in the AIF could cause actual events or results to differ materially from those described in the forward-looking information or statements. We also remind readers that CannTrust remains in default of its disclosure requirements under applicable securities laws and stock exchange requirements, that its most recent Annual Information Form, Form 40-F and other information does not do not reflect all of the risk factors currently facing the company, and that the company has not completed or filed the restatements of the financial statements included in the annual information form or the March 2019 Form 40-F or otherwise filed an amendment to this Form 40-F, and the Company has elected not to correct its prior filings or make other filings with respect to periodic disclosure requirements under the applicable securities and exchange requirements. None of the Company’s securities are listed on a stock exchange in any jurisdiction and, in Canadatrading 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 meet its disclosure obligations under applicable securities laws.
SOURCE CannTrust Holdings Inc.