VAUGHAN, ON, May 15, 2020 /CNW/ - On March 31, 2020, CannTrust Holdings Inc. (the
"Company") announced that the Company and certain of its
subsidiaries (collectively, "CannTrust") were granted protection
pursuant to an order issued under the Companies' Creditors
Arrangement Act by the Ontario Superior Court of Justice (the
"Court") and that Ernst & Young Inc. was appointed monitor (in
such capacity, the "Monitor"). In addition, the Court approved
CannTrust's agreement engaging Greenhill & Co. Canada Ltd (the
"Financial Advisor") as financial advisor. On
May 8, 2020, the Court issued an
order (the "SISP Order") authorizing and directing CannTrust
to undertake a sale and investment solicitation process (the
"SISP"). The SISP Order requires the Company to issue this press
release to announce the initiation of the SISP.
The SISP is intended to solicit interest in, and opportunities
for, a sale of or investment in all or part of CannTrust's assets
and business operations (the "Opportunity"). The Opportunity
may include one or more of a recapitalization, arrangement or other
form of investment in, or reorganization of, the business and
affairs of CannTrust as a going concern or a sale of all,
substantially all or one or more components of CannTrust's assets
(including, without limitation, the shares of CannTrust Inc.) and
its business operations as a going concern or otherwise.
The SISP is a two-phased process with the Phase 1 bid deadline set
for June 22, 2020.
Those interested in participating in this SISP can contact the
Financial Advisor to receive additional information at:
Greenhill & Co. Canada LTD.
79 Wellington West
Suite 3403, P.O. Box 333
Toronto, ON M5K 1K7
Attn: Michael Nessim and
Usman Masood
Email:
michael.nessim@greenhill.com and usman.masood@greenhill.com
Copies of the SISP Order and the SISP may be obtained from the
website of the Monitor at www.ey.com/ca/CannTrust.
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 United States Private
Securities Litigation Reform Act of 1995 and other
applicable United States safe harbor laws, and such
statements are based upon CannTrust's current internal
expectations, estimates, projections, assumptions and beliefs and
views of future events. Forward-looking information and
forward-looking statements can be identified by the use of
forward-looking terminology such as "believes", "expect",
"likely", "may", "will", "should", "intend", "anticipate",
"potential", "proposed", "estimate" and other similar words,
including negative and grammatical variations thereof, or
statements that certain events or conditions "may", "would" or
"will" happen, or by discussions of strategy.
The forward-looking information and statements in this news
release include statements relating to the corrective actions being
taken by the Company, and Health Canada's pending determinations.
Forward-looking information and statements necessarily involve
known and unknown risks, including, without limitation: actions
taken in respect of the Company's products by its customers and
regulators; results of Health Canada's investigation, including
orders and compliance measures required by Health Canada and their
impact on the operations, inventory, assets and financial condition
of the Company; the Company's implementation of remediation plans
and related actions; regulatory approval; the outcome of the
Company's contingent liabilities; the impact of potential
regulatory 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, the United
States and elsewhere; the cannabis industry
in Canada generally; and, the ability of CannTrust to
implement its business strategies. The Company is subject to a
cease-trade order issued by the Ontario Securities Commission and
trading in its common shares has been suspended by the Toronto and New
York exchanges, each of which has initiated formal delisting
procedures.
Any forward-looking information and statements speak only as of
the date on which they are made, and, except as required by law,
CannTrust does not undertake any obligation to update or revise any
forward-looking information or statements, whether as a result of
new information, future events or otherwise. New factors emerge
from time to time, and it is not possible for CannTrust to predict
all such factors. When considering these forward-looking
information and statements, readers should keep in mind the risk
factors and other cautionary statements in CannTrust's Annual
Information Form dated March 28, 2019 (the "AIF") and
filed with the applicable Canadian securities regulatory
authorities on SEDAR at www.sedar.com and filed as an
exhibit CannTrust's Form 40-F annual report 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"). The
risk factors and other factors noted in the AIF could cause actual
events or results to differ materially from those described in any
forward-looking information or statements. Readers are also
reminded that CannTrust remains in default of its periodic
disclosure requirements under applicable securities laws and stock
exchange requirements, that its most recent AIF, Form 40-F and
other disclosures do not reflect all risk factors that currently
face the Company, and that the Company has not completed or filed
the restatements of the financial statements included in the AIF or
the March 2019 Form 40-F or otherwise filed an amendment
to such Form 40-F, that the Company has determined not to correct
its prior filings or make any further filings in respect of
periodic disclosure requirements under applicable securities laws
and stock exchange requirements and that the Company's securities
do not trade on any stock exchange.
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SOURCE CannTrust Holdings Inc.