Canada – First Casualty of 2022: CannTrust In Final Death Throes?

CANNANNEW REPORT

It’s looking more and more like it according to a press release issued yesterday The Vaughan, Ontario-headquartered company also said its fourth Companies’ Creditors Arrangement Act (CCAA) plan has been implemented, resulting in four directors resigning from the board, effective immediately. Those directors are: Board chair Robert Marcovitch. Mitchell Sanders. Mark Dawber. Shawna Page. VAUGHAN, ON, Jan. 6, 2022 /CNW/ – CannTrust Holdings Inc. (“CannTrust” or the “Company”) (unlisted) today announced that its Fourth Amended & Restated Plan of Compromise, Arrangement and Reorganization dated July 7, 2021 (the “CCAA Plan”) has been implemented. The implementation of the CCAA Plan follows its approval by the Ontario Superior Court of Justice on July 16, 2021 and the approval of the US class action settlement by the United States District Court Southern District of New York on December 2, 2021. Amongst other steps, the Company has contributed $50 million to a trust established to facilitate the class action settlements in full satisfaction of the actions against it and $2.7 million in trust for settlement of various claims under its CCAA proceedings. 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…

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Source : Canada – First Casualty of 2022: CannTrust In Final Death Throes?

reposted by Cannabis News World

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