CannTrust Holdings Inc. said Thursday it’s developing an “orderly wind-down plan” to maximize the value of its assets, because the company does not have sufficient liquidity to operate beyond the near term. The wind-down plan would be used if a financing or strategic transaction option cannot be finalized by the Canadian cannabis producer. The company said it has contributed $50 million to a trust to facilitate class action settlements in “full satisfaction of the actions against it.” It also set aside a $2.7 million trust for settlement of claims under its fourth amended and restated plan of compromise, arrangement and reorganization dated July 7. The company said it’s currently in default of its minimum Ebitda covenant under its financing plan. The company’s current stay period ends on Jan. 31. CannTrust has also accepted the resignation of four board members including chairman Robert Marcovitch. The company remains in talks with potential investors and strategic partners.
Source: Marketwatch
