CannTrust Exits Creditor Protection With New Investor, Plans to Rebrand

VAUGHAN, ONTARIO— CannTrust Holdings Inc. announced it will rebrand and change it’s name after it emerged from court-supervised proceedings under the  Canadian Companies’ Creditors Arrangement Act. This change in fortunes came about when a CannTrust subsidiary received a $17 million capital injection from Dutch investor group, Marshall Fields International B.V.

Ontario-based Canntrust was founded at the birth of the Canadian cannabis industry in 2013. It was a favorite of investors. But after the discovery of allegedly unlicensed grow rooms in their Canadian facilities, their share price collapsed.

They then faced class-action lawsuits from investors who said they lost millions of dollars after the company allegedly made misrepresentations about having necessary licenses for growing cannabis.

Securities charges have been leveled against three former executives — ex CEO Peter Aceto, former vice-chairman Mark Litwin, and former chairman Eric Paul — and are set to be reviewed in Ontario court Sept. 20.

All three face charges of fraud, making false or misleading statements and authorizing, permitting or acquiescing in the commission of an offense. Litwin and Paul are also facing insider trading charges and Litwin and Aceto are charged with making a false prospectus and false preliminary prospectus.

Greg Guyatt – CEO CannTrust

The company intends to either apply to the Ontario Securities Commission for an order revoking the OSC’s “failure-to-file” cease-trade order dated April 13, 2020 or take steps to obtain a stock exchange listing for the common shares of CannTrust Equity according to reporting in Canadian Press.

“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,” stated CannTrust CEO Greg Guyatt in a news release.