Vaughn, Ontario-based CannTrust Holdings has exited court-supervised proceedings under the Companies Creditors Arrangement Act after a key subsidiary completed a financing worth 17 million Canadian dollars ($13.3 million).
The company said its subsidiary, CannTrust Equity, completed the financing via investors led by Marshall Fields International B.V. Marshall Fields is a subsidiary of Kenzoll B.V., a Netherlands-based private equity investment company.
Marshall Fields invested CA$11.2 million to acquire a 90% equity interest in CannTrust Equity and provided the cannabis producer a CA$5.5 million secured credit facility.
The completion of the financing means CannTrust has emerged from the court-supervised proceedings under the Companies Creditors Arrangement Act, effective immediately, the company said in a news release.
CannTrust plans to convene a shareholder meeting before summer.
The company said it plans to explore alternatives for either:
- Applying to the Ontario Securities Commission for revocation of a “failure-to-file” Cease Trade Order.
- Taking steps to obtain a stock exchange listing for the common shares of CannTrust Equity.
“This marks the end of one long journey and the beginning of a new, exciting era for CannTrust,” CEO Greg Guyatt said in a statement.
“Today we can take our first step forward, focusing our attention on the bright future that lies ahead, with our new partners, Kenzoll.”
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As previously reported by MJBizDaily, CannTrust is also planning to change its name.
Before it ran into regulatory issues, CannTrust was one of the biggest cannabis companies in Canada with an active medical clientele of 67,000 customers and exports to countries such as Australia and Denmark.