CannTrust Applies to Extend Time for Annual General Meeting

Rhea-AI Summary

CannTrust Holdings Inc. announced plans to request an extension for its next annual shareholder meeting, currently under the Companies' Creditors Arrangement Act (CCAA). The motion will be heard by the Ontario Superior Court on September 16, 2020. This extension seeks to push the meeting to 120 days after CCAA proceedings conclude. CannTrust will file necessary court materials, including an affidavit and a draft order, on September 9, 2020. The company warns that forward-looking statements may face risks that could lead to significant uncertainties regarding its recovery and obligations to creditors.

Positive

• The company is actively seeking to extend the timeline for its annual meeting, indicating an organized approach to its CCAA proceedings.

Negative

• The extension indicates a lack of clarity on CannTrust's recovery timeline, suggesting possible delays in operational restructuring.
• Potential risks in CCAA proceedings could affect obligations to creditors and shareholder distributions.

TORONTO, Sept. 10, 2020 /PRNewswire/ - CannTrust Holdings Inc. ("CannTrust," or "the Company") today announced that the Company is seeking an order in its proceeding under the Companies' Creditors Arrangement Act ("CCAA") extending the time for CannTrust to call the next annual meeting of shareholders to a date 120 days following the completion of the Company's CCAA proceedings. The motion is scheduled to be heard before a judge of the Ontario Superior Court of Justice, Commercial List, on September 16, 2020 at 12:00 p.m., judicial videoconference via Zoom due to the COVID-19 emergency.

In support of the motion, CannTrust will today file with the Court the following materials (collectively, the "Court Materials"): a Motion Record containing the Notice of Motion, the Affidavit of Greg Guyatt, sworn September 9, 2020 and a draft Order and Factum.

The Court Material, together with details relating to CannTrust's CCAA proceeding, are available on the website of the Court-appointed monitor in CannTrust's CCAA proceedings at https://documentcentre.ey.com/#/detail-engmt?eid=370

Forward-Looking Statements

This press release contains forward looking statements, including statements with respect to the CCAA proceedings. These forward-looking statements reflect CannTrust's current views and are based on certain assumptions, including assumptions as to future operating conditions and courses of action, sale or refinancing alternatives, economic conditions and other factors CannTrust believes are appropriate. Such forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in these statements, including the risk that a sale of, investment in, or refinancing or other strategic alternative may not be available on terms acceptable to CannTrust, or at all, or that any such disposition or other strategic alternative would yield proceeds sufficient to the satisfy CannTrust's obligation to other creditors or any distribution to CannTrust's shareholders; the risk that litigation or defence proceedings involving claims against CannTrust may involve substantial expense and, if successful, could require CannTrust to pay substantial damages; and those risks and uncertainties disclosed in CannTrust's most recently filed prospectus and other regulatory filings posted on SEDAR at www.sedar.com. These risks and uncertainties may cause actual results, events or developments to be materially different from those expressed or implied by such forward-looking statements. Unless required by law, CannTrust does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or results or other factors.

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SOURCE CannTrust Holdings Inc.

FAQ

What is CannTrust seeking regarding its annual meeting?

CannTrust is seeking an extension to hold its annual meeting 120 days after its CCAA proceedings conclude.

When is the CannTrust motion scheduled to be heard?

The motion is scheduled for September 16, 2020, at 12:00 p.m. via judicial videoconference.

What are the risks associated with CannTrust's CCAA proceedings?

Risks include potential inability to secure satisfactory terms for sales or refinancing, substantial legal expenses, and uncertain outcomes for creditors and shareholders.

What materials will CannTrust file in support of its motion?

CannTrust will file a Motion Record containing the Notice of Motion and an affidavit.