VAUGHAN, ON, May 29, 2020 /PRNewswire/ - CannTrust Holdings
Inc. ("CannTrust" or the "Company") announced that it has
received notice from Health Canada that the Company's licenses for
its Fenwick Perpetual Harvest Facility (the "Fenwick facility") have been reinstated.
CannTrust has been working in collaboration with Health Canada
for many months to identify and address the Company's regulatory
deficiencies. On February 14,
2020, the Company announced that it had completed its
remediation activities at the Fenwick facility, and that documentation in
support of license reinstatement had been submitted to Health
Canada.
CannTrust will immediately recommence operations at the
Fenwick facility, which is located
in the Niagara region. At this time, the Company cannot provide an
exact timeframe for when its products will be available in the
market, which is dependent upon receiving a response from Health
Canada to CannTrust's licence reinstatement submission with respect
to its Vaughan manufacturing
facility, which was submitted to Health Canada more recently, on
April 24, 2020. The decision to
reinstate the Company's licenses at its Vaughan facility is both independent of the
Fenwick facility's licence
reinstatement and at the discretion of Health Canada.
As previously announced, CannTrust is currently under CCAA
protection to facilitate the Company's efforts to resolve its civil
litigation exposures and complete its review of strategic
alternatives. Those efforts are ongoing, and the Company is
unable to predict either their timing or their outcome. In the
meantime, CannTrust remains without meaningful revenues and has
terminated or laid-off a significant portion of its workforce. The
Company plans to begin operations following today's announcement as
an important first step towards rebuilding stakeholder trust and
delivering high-quality, innovative products to its patients and
customers.
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.
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, and 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. None of the Company's securities
is listed for trading on any stock exchange in any jurisdiction
and, in Canada, trading in the
Company's securities is subject to a cease-trade order issued on
April 13, 2020 by the Ontario
Securities Commission for CannTrust's failure to comply with its
disclosure obligations under applicable securities laws.
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SOURCE CannTrust Holdings Inc.