CannTrust Postpones Annual General Meeting Date

Rhea-AI Summary

CannTrust announced that the Ontario Superior Court of Justice has extended the deadline for the Company to hold its next annual shareholder meeting by 120 days post-CCAA proceedings. The Company remains in ongoing CCAA proceedings, pending the resolution of its financial situation, which includes contingent liabilities and potential regulatory investigations. CannTrust aims to resume manufacturing operations with its cannabis products expected to be available in Canadian markets by Q4 2020. However, the company is currently subject to a cease-trade order due to previous failure to meet disclosure obligations.

Positive

• Extension of the deadline for the annual shareholder meeting allows CannTrust more time to resolve financial issues.
• Plans to restart manufacturing operations and availability of cannabis products in Canadian markets by Q4 2020.

Negative

• CannTrust remains in default of periodic disclosure requirements, indicating ongoing compliance issues.
• Subject to a cease-trade order since April 13, 2020, limiting trading of its securities in Canada.

TORONTO, Sept. 16, 2020 /PRNewswire/ - CannTrust Holdings Inc. ("CannTrust," or "the Company") today announced that the Ontario Superior Court of Justice, Commercial List, granted an order in the Company's proceeding under the Companies' Creditors Arrangement Act ("CCAA")  extending the time for CannTrust to call the next annual meeting of its shareholders to a date 120 days following the completion of its CCAA proceeding.

Further details regarding this order and CannTrust's CCAA proceeding are available on the website of the Court-appointed monitor in the Company's CCAA proceedings at https://documentcentre.ey.com/#/detail-engmt?eid=370

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 planned restart of manufacturing operations and the expectation that CannTrust's cannabis product will be available in the Canadian medical and recreational markets in Q4 2020. 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 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; the ability of CannTrust to effectively resume its cannabis growing, process and packaging operations, the ability of CannTrust to implement its business strategies, and the potential impact of the COVID-19 pandemic on CannTrust's customers and patients, the financial viability of the Company, and general economic conditions.

Any forward-looking information and statements reflect management's current beliefs, are based on information currently available to management 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 to 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.

FAQ

What is the significance of CannTrust's recent court ruling regarding its annual meeting?

The Ontario Superior Court's ruling extends CannTrust's deadline to hold its next annual shareholder meeting by 120 days following the conclusion of its CCAA proceedings, allowing the company more time to address its financial situation.

When does CannTrust expect to resume its cannabis manufacturing operations?

CannTrust anticipates that its cannabis products will be available in the Canadian medical and recreational markets in Q4 2020.

What are the implications of the cease-trade order on CannTrust's stock?

The cease-trade order issued on April 13, 2020, prohibits trading of CannTrust's securities in Canada, significantly impacting the company's ability to raise capital or liquidate assets.

What challenges does CannTrust face amid its ongoing CCAA proceedings?

CannTrust faces several challenges, including contingent liabilities, potential regulatory investigations, and the need to effectively resume its cannabis growing and processing operations.