CannTrust's Fourth Amended & Restated Plan of Compromise, Arrangement and Reorganization has been implemented. The
As planned, upon the implementation of the CCAA plan, four Directors of the Company resigned from the Board of Directors with immediate effect. CannTrust has accepted resignations from Chairman of the Board Robert Marcovitch, along with Directors Mitchell Sanders, Mark Dawber and Shawna Page. The Company thanks each Director for their contribution to the Company and wishes them every success in their future endeavors.
Notwithstanding the significant progress made by the CannTrust Group in these proceedings, including successfully obtaining the reinstatement of its licences from Health Canada, restructuring its operations, resuming production and processing operations, reaching key settlements, and the development, approval and sanction of the CCAA Plan, the Canadian cannabis industry generally, and the CannTrust Group specifically, have faced challenges. As a result, the CannTrust Group does not have sufficient liquidity to operate beyond the near term.
CannTrust is in default of the minimum EBITDA covenant under its DIP loan. The DIP lender has not agreed to waive the default although it continues to advance funds under the facility.
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