CannTrust Holdings Inc. Secures Cdn $ 22.5 Million Debtor-In-Owner Funding and CCAA Exit Credit Facility

0

Company awaits approval from Ontario Superior Court of Justice

VAUGHAN, ON, April 20, 2021 / PRNewswire / – CannTrust Holdings Inc. (“CannTrust” or the “Company”) (unlisted) today announced that it has secured a “Debtor in Possession” (“DIP”) commitment and an exit credit facility under the CCAA (“Credit Facility”) of the Cortland Credit Lending Corporation, as administrative agent of the lenders, subject to certain conditions, including obtaining the approval of the Superior Court of Justice of the ‘Ontario (the “Court”) under the Companies’ Creditors Arrangement Act (Canada) at a hearing scheduled for April 30, 2021.

The Credit Facility consists of a revolving loan, under which additional repayments and drawings will be authorized from time to time, provided that the amounts due under the Credit Facility do not exceed the borrowing limit of 22.5 million Canadian dollars. The Credit Facility will have a duration of 12 months, which may be extended for a further 12 months by mutual agreement.

The credit facility will be secured by a first ranking security interest in all of CannTrust’s assets, subject to certain authorized charges and certain excluded assets and, during the life of the CCAA proceeding, a financing charge. First-tier super-priority dip.

The funds advanced under the credit facility will be used to fund CannTrust’s working capital needs and support the restoration of its operations, so that CannTrust can continue to regain stakeholder confidence while delivering innovative products from quality to its patients and consumers.

CannTrust remains under the protection of the CCAA in order to facilitate its efforts to resolve its civil claims and complete its review of strategic alternatives. Aspects of ongoing efforts remain confidential and the Company cannot predict with certainty their timing or outcome. In the meantime, the Company’s continued efforts to complete the restoration of its operations in the recreational and medical cannabis business lines in Canada are essential for the Company to focus on rebuilding its franchise. For more information on CannTrust’s CCAA proceedings or the credit facility, please visit: www.ey.com/ca/canntrust.

About CannTrust

CannTrust is a federally regulated licensed cannabis producer. We are proudly Canadian and operate a portfolio of brands including estora, Liiv and Synr.g, specially designed to surprise and delight patients and consumers.

At CannTrust, we are committed to delivering an exceptional customer experience, as well as consistent, quality products through standardized processes. Our greenhouse produces Grade A cannabis flowers, which are currently sold as dried flowers, oil drops and capsules. Founded in 2013, our continued success in the medical cannabis market and subsequent expansion into the recreational sector has earned us the title of Certified Producer of the Year at the 2018 Canadian Cannabis Awards.

CannTrust engages in research and innovation, investing in the development of technologies for new products in the medical, recreational and wellness markets, while contributing to the growing body of evidence-based research regarding the use and efficacy of cannabis.

Learn more about www.canntrust.com.

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 US Private Securities Litigation Reform Act of 1995 and others. United States Safe Harbor laws, and such statements are based on CannTrust’s current internal expectations, estimates, projections, assumptions, beliefs and opinions about future events.

Forward-looking information and forward-looking statements can be identified by the use of forward-looking terms such as “believes”, “expects”, “likely”, “could”, “will”, “should”, “anticipate”, “Potential”, “proposed”, “estimate” and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions “could”, “would” or “will” occur. produce, or through strategy discussions.

The forward-looking information and statements contained in this press release include statements relating to the expectation that CannTrust will obtain court approval for the credit facility. resolve certain civil disputes and opt out of creditor protection under the CCAA. 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 regulatory and other potential 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, United States and elsewhere; the cannabis industry in Canada generally; and CannTrust’s ability to execute its business strategies.

All forward-looking information and statements speak only as of the date on which they are made, and, except as required by law, CannTrust undertakes no obligation to update or revise any forward-looking information or statement. whether due to new information, future events or otherwise. New factors appear from time to time, and it is not possible for CannTrust to predict all of these factors. When reviewing such forward-looking information and statements, readers should keep in mind the risk factors and other caveats contained in CannTrust’s annual information form dated March 28, 2019 (the “Annual Information Form”) and filed with the relevant Canadian securities regulatory authorities on SEDAR at www.sedar.com and filed as evidence CannTrust’s Annual Report Form 40-F 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 “). Risk factors and other factors mentioned in the Annual Information Form could cause actual events or results to differ materially from those described in the forward-looking information or statements. Readers are also reminded that CannTrust remains in default of disclosure obligations under applicable securities laws and stock market requirements, that its most recent Annual Information Form, Form 40-F and other information does not reflect all of the risk factors to which the Company is currently facing, and that the Company has not completed or filed the restatements of the financial statements declarations included in the annual information form or the March 2019 Form 40-F or otherwise filed an amendment to this Form 40-F, and the Company has decided not to correct its previous filings or to make additional filings with respect to the periodic disclosure requirements under the laws on applicable securities and stock market requirements. None of the Company’s securities is listed for trading on a stock exchange in any jurisdiction whatsoever and, in Canada, trading in the Company’s securities is subject to a trading ban issued on April 13, 2020 by the Ontario Securities Commission for CannTrust’s failure to meet its disclosure obligations under applicable securities laws.

SOURCE CannTrust Holdings Inc.

Related links

http://www.canntrust.com


Source link

Share.

About Author

Leave A Reply