CannTrust Holdings Inc. said Wednesday it will put $50 million into a trust that will be earmarked for investors who filed class-action lawsuits against the company after it received a non-compliance order from Health Canada.
The move is to cover claims stemming from a production scandal that led federal regulators to suspend its ability to grow and produce legal pot.
The company said that the "restructuring support agreement" it entered into with plaintiffs still needs to be negotiated to finalize "in good faith."
"Today's announcement represents a significant milestone towards the resolution of [nearly] all of the civil litigation claims that were filed against CannTrust following the company's non-compliance with certain Health Canada regulations," Greg Guyatt, CannTrust chief executive officer, said in a statement.
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