VAUGHAN, ON, Dec. 5, 2019 /CNW/ – CannTrust Holdings Inc.
("CannTrust" or the "Company", TSX: TRST, NYSE: CTST) today is
providing a status update in accordance with its obligations under
the alternative information guidelines set out in National Policy
12-203 – Management Cease Trade Orders ("NP 12-203"), which require
the Company to provide bi-weekly updates until such time as the
Company is current with its filing obligations under Canadian
securities laws. As previously announced, the Company is subject to
a management cease trade order ("MCTO") issued by the Ontario
Securities Commission. The MCTO prohibits the directors and
executive officers of the Company from trading in or acquiring
securities of the Company until two full business days after the
Company files an interim financial report for the three and six
month periods ended June 30, 2019, an
interim management's discussion and analysis for the corresponding
period and certifications of interim filings. The MCTO does not
affect the ability of investors who are not insiders to trade in
the Company's securities.
Timing of Financial Results and TSX Listing Update
CannTrust continues to make progress in working with its
independent auditor to complete its restated audited financial
statements for the year ended December 31,
2018, its restated interim financial statements for the
first quarter of 2019, and its interim financial statements for the
second and third quarters of 2019, together with the related
management's discussion and analysis for the corresponding periods.
As disclosed in the Company's November 21,
2019 news release, these financial statements are unlikely
to be completed and filed before the end of the calendar year.
On November 26, 2019, CannTrust
announced that, as a result of the delay in filing the
aforementioned financial disclosures, the Toronto Stock Exchange
(the "TSX") intended to review the Company's eligibility to
continue listing its common shares. The TSX advised that if the
Company is unable to satisfy its disclosure requirements by
March 25, 2020, the Company's
securities will be delisted 30 days following this date. The
Company fully anticipates filing the associated disclosures and
meeting the TSX's requirements prior to March 25, 2020.
As at November 30, 2019, CannTrust
had approximately $185 million CAD of
cash liquidity. The Company has no borrowings.
Update on Remediation Efforts
CannTrust continues to make progress on its remediation efforts
and anticipates completing all of the activities described within
its remediation plan by the end of the first quarter of 2020,
although completion will be subject to Health Canada's input and
approval. To that end, the Company and Health Canada have already
engaged on various aspects of the remediation plan.
Litigation Update
CannTrust was either served or became aware of putative class
action lawsuits in Canada and
the United States against the
Company and certain of its current and former Directors, officers,
and employees relating to the drop in its share price after
July 8, 2019. The Company expects the
number of putative class actions against it to be consolidated in
the coming months. Recently, the Company became aware of a lawsuit
by Zola Finance Holdings Ltd. and Igor
Gimelshtein that also relates to the drop in its share price
after July 8, 2019. The total amounts
claimed in the lawsuits overlap and have not been quantified at the
present time. The Company has not currently recorded any uninsured
amount related to this contingency.
CannTrust further advises that:
(i)
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Other than as
disclosed above, there have been no material changes to the
information contained in the Company's August 16, 2019 news
release, August 29, 2019 news release, September 12, 2019 news
release, September 26, 2019 news release, October 10, 2019 news
release, October 24, 2019 news release, November 7, 2019 news
release, and November 21, 2019 news release;
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(ii)
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The Company intends
to continue to comply with the alternative information guidelines
of NP 12-203; and,
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(iii)
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Except as previously
disclosed, there are no subsequent specified defaults (actual or
anticipated) within the meaning of NP 12-203.
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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; 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 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.
The TSX and NYSE do not accept responsibility for the adequacy
or accuracy of this release.
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SOURCE CannTrust Holdings Inc.