CannTrust Announces Appointment of Successor Auditor
VAUGHAN, ON, Aug. 16, 2021 /PRNewswire/ - CannTrust Holdings Inc. ("CannTrust" or the "Company") (unlisted) announced today the appointment of MNP LLP as its auditor. This follows the Company's prior announcement of a change in auditor from KPMG LLP ("KPMG") dated April 30, 2021. The Company's audit committee and board have approved the appointment of MNP effective August 13, 2021.
MNP LLP is one of the largest national full-service business advisory firms in Canada, providing client-focused accounting, taxation, digital solutions and consulting advice.
The Company and its management are committed to working closely with MNP LLP on the completion of its audited financial statements for 2020 and 2021 for filing in the second quarter of 2022. With a successor auditor engaged, CannTrust intends to develop a plan and timetable for curing the Company's historical disclosure defaults with the ultimate objective of submitting an application to the Ontario Securities Commission (the "OSC") for a discretionary order revoking the OSC's cease-trade order dated April 13, 2020. Due to recent amendments to Rule 15c2-11 under the U.S. Securities Exchange Act of 1934, the Company expects that brokers and dealers in the U.S. will cease to publish quotations for its common shares and will cease to submit such quotations for publication effective September 28, 2021 until financial statements are filed. Resolving CannTrust's historical disclosure defaults will require a considerable amount of management time and expense and there can be no assurance that the Company will be successful in obtaining an order from the OSC.
For a copy of the Company's reporting package, including the notice of change of auditor and MNP's response letter, each prepared in accordance with the applicable requirements of Section 4.11 of National Instrument 51-102 – Continuous Disclosure Obligations, please visit www.sedar.com.
CannTrust remains under CCAA protection to facilitate its efforts to resolve its civil litigation claims and implement its Court approved Plan of Compromise, Arrangement and Reorganization. Aspects of the ongoing efforts remain confidential, and the Company is unable to predict with any certainty either their timing or outcome. For more information about CannTrust's CCAA proceedings, please visit: www.ey.com/ca/canntrust.
About CannTrust
CannTrust is a federally regulated licensed cannabis producer. We are proudly Canadian, operating a portfolio of brands including estora, Liiv and Synr.g, specifically designed to surprise and delight patients and consumers.
At CannTrust, we are committed to providing an exceptional customer experience, as well as consistent and quality products through standardized processes. Our greenhouse produces Grade A cannabis flower, with products currently being sold in dried flower, pre-roll, vape, oil drops and capsule formats. Founded in 2013, our continued success in the medical cannabis market and subsequent expansion into the recreational business, led to us being named Licensed Producer of the Year at the Canadian Cannabis Awards 2018.
CannTrust is committed to research and innovation, investing in developing technologies for new products in the medical, recreational, and wellness markets, while contributing to the growing body of evidence-based research regarding the use and efficacy of cannabis.
Learn more at www.canntrust.com.
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 expectation that CannTrust will apply for and obtain a discretionary order revoking the OSC's cease-trade order. Forward-looking information and statements necessarily involve known and unknown risks, including, without limitation: the outcome of the Company's contingent liabilities; the impact of any regulatory and other investigations; the Company's ongoing review of strategic and financing alternatives; 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 state of the cannabis industry in Canada generally; CannTrust's ability to timely cure its disclosure defaults and obtain an order revoking the OSC's cease-trade order; the willingness of a stock exchange to list the Company's common shares and CannTrust's ability to satisfy the requirements of such exchange; and, the ability of CannTrust to successfully 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 "March 2019 Form 40-F"). 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. Readers are also reminded that CannTrust remains in default of its periodic disclosure requirements under applicable securities laws and stock exchange requirements, that its most recent AIF, Form 40-F and other disclosures do not reflect all risk factors that currently face the Company, and that the Company has not completed or filed the restatements of the financial statements included in the AIF or the March 2019 Form 40-F or otherwise filed an amendment to such Form 40-F, and that the Company is permitted by the Initial Order of the Superior Court of Justice to not to correct its prior filings or make any further filings in respect of periodic disclosure requirements under applicable securities laws and stock exchange requirements. None of the Company's securities is listed for trading on any stock exchange in any jurisdiction and, in Canada, trading in the Company's securities is subject to a cease-trade order issued on April 13, 2020 by the Ontario Securities Commission for CannTrust's failure to comply with its disclosure obligations under applicable securities laws.
SOURCE CannTrust Holdings Inc.
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