CAN (ON): Ontario Court approves CannTrust's reorganization plan

CannTrust Holdings' Plan of Compromise, Arrangement and Reorganization has been approved by the Ontario Superior Court of Justice.

Implementation of the CCAA Plan remains subject to a number of conditions, including the U.S. Approval Order being entered in the U.S. Class Action and the expiration of applicable appeal periods. CannTrust expects the conditions to be satisfied and implementation of the plan to occur in three to five months, or in the fourth quarter of 2021.

"Having the CCAA Plan sanctioned is another significant milestone in our CCAA journey and we are pleased to have made progress towards plan implementation." said Greg Guyatt, Chief Executive Officer at CannTrust. "While we are eager to complete the plan implementation, our operational focus continues to be on surprising and delighting our consumers with quality products for those who want and need them."

As previously disclosed, CannTrust anticipates announcing the engagement of a replacement independent auditor during the third quarter of 2021 and has initiated discussions with the Ontario Securities Commission (the "OSC") about proposing a plan and timetable for curing the company's historical disclosure defaults. Following the engagement of a replacement auditor, the company anticipates submitting an application to the OSC for a discretionary order revoking the OSC's cease-trade order dated April 13, 2020 and seeking a new listing for CannTrust's common shares on a Canadian stock exchange. Although those discussions remain at a preliminary stage, CannTrust is working towards the completion, filing and mailing of its audited financial statements for 2020 and 2021 during the second quarter of 2022. Resolving CannTrust's historical disclosure defaults will require a considerable amount of management time and expense and there can be no assurance that the company will be successful in obtaining an order from the OSC or obtaining a listing for CannTrust's common shares.