A court approved a plan for troubled Canadian marijuana producer CannTrust Holdings to reorganize under Canada’s Companies’ Creditors Arrangement Act (CCAA), the Ontario-based business said.
CannTrust expects the plan approved by the Ontario Superior Court of Justice to be implemented within three to five months, according to a Friday afternoon news release.
However, the plan’s implementation is still subject to conditions in relation to a U.S. class action lawsuit as well as appeal periods, CannTrust warned.
CannTrust is also seeking a new listing for its shares on a Canadian stock exchange, according to the release.
CannTrust was initially granted creditor protection at the end of March 2020.
The Ontario-based cannabis producer ran into trouble with Canadian cannabis regulator Health Canada in 2019 after being caught cultivating in unlicensed areas.
The company said in its Friday announcement that it plans to launch new products in the second half of this year.
Documents relating to CannTrust’s CCAA restructuring are available here.