CannTrust Completes CAD $17 million Financing, Exits CCAA

CannTrust Completes CAD million Financing, Exits CCAA
CANNANNEW REPORT

CannTrust Holdings Inc. (the “Company”) (unlisted) today announced that its subsidiary, CannTrust Equity Inc. (“CannTrust Equity”), has completed its previously announced financing for aggregate cash proceeds of approximately CAD $17 million, as approved by the Ontario Superior Court on February 25, 2022 (the “Financing”). A group of investors led by Marshall Fields International B.V., a subsidiary of Kenzoll B.V., a Netherlands-based private equity investment company, has invested CAD $11.2 million to acquire a 90% equity interest in CannTrust Equity and provided a CAD $5.5 million secured credit facility to CannTrust Equity, which is subordinated to the existing $22.5 million credit facility arranged by Cortland Credit Lending Corporation. The Company retains the remaining 10% of the common shares of CannTrust Equity. With the completion of the Financing, the companies comprising the CannTrust Group, have emerged from their Court-supervised proceedings under the Companies Creditors Arrangement Act (“CCAA”), effective immediately. “This marks the end of one long journey and the beginning of a new, exciting era for CannTrust. Today we can take our first step forward, focusing our attention on the bright future that lies ahead, with our new partners, Kenzoll.” said Greg Guyatt, Chief Executive Officer, CannTrust. “There’s lots to get done, but the entire team is excited to progress our 2022 strategy and announce our new company name.” The Company plans to convene a meeting of its shareholders within the next four months. In the meantime, the Company intends to explore alternatives for either applying to the Ontario Securities Commission (“OSC”) for an order revoking the OSC’s “failure-to-file” Cease Trade Order dated April 13, 2020 or for taking steps to obtain a stock exchange listing for the common shares of CannTrust Equity. About CannTrust CannTrust is a federally regulated licensed cannabis producer. We are proudly Canadian, operating a portfolio of brands including estora, Liiv, Synr.g and XSCAPE, specifically designed to surprise and delight…

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Source : CannTrust Completes CAD million Financing, Exits CCAA

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