CannTrust Holdings Inc. announced on Tuesday that it obtained protection from creditors amid ongoing struggles to recover from last year’s scandal over illicit cannabis production that resulted in its licences being suspended by Health Canada.
The company said it was granted protection under the Companies' Creditors Arrangement Act (CCAA), giving it a stay of proceedings for at least 10 days from creditors and plaintiffs who are looking to enforce their claims in various lawsuits.
"Despite the efforts by CannTrust's management and board of directors to preserve the company's cash liquidity while seeking to restore the company to operations and resolve the multiple litigations and other contingent claims facing the company, the company's future remains uncertain," CannTrust said in a statement.
As a result of filing for CCAA, the pot producer said it expects its shares will soon be delisted from the TSX and New York Stock Exchange. The company also said that it doesn't intend to spend more time or resources to refile any financial statements that remain outstanding.
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