CannTrust to change name as it exits creditor protection with new majority investor

Advertisement

Advertise with us

VAUGHAN, Ont. - CannTrust Holdings Inc. plans to change its name after exiting creditor protection, with its subsidiary receiving $17 million in financing from a group of investors led by a Netherlands-based private equity investment company.

Read this article for free:


or

Already have an account? Log in here »

To continue reading, please subscribe:

Subscribe and receive a limited-edition Free Press branded hat or tote.

Digital Subscription

One year of digital access for only $205*

  • Enjoy unlimited reading on winnipegfreepress.com
  • Read the E-Edition, our digital replica newspaper
  • Access News Break, our award-winning app
  • Play interactive puzzles

*First annual payment billed as $205.00 + GST for one year. This annual subscription will automatically renew at $233.00 + GST every 52 weeks (10% off the regular annual price of $259.35). Offer available to new and qualified returning subscribers only. Cancel any time.

To continue reading, please subscribe:

Add Free Press access to your Brandon Sun subscription for only an additional

$1 for the first 4 weeks*

  • Enjoy unlimited reading on winnipegfreepress.com
  • Read the E-Edition, our digital replica newspaper
  • Access News Break, our award-winning app
  • Play interactive puzzles
Start now

*Your next Brandon Sun subscription payment will increase by $1.00 and you will be charged $17.95 plus GST for four weeks. After four weeks, your payment will increase to $24.95 plus GST every four weeks.

Hey there, time traveller!
This article was published 15/03/2022 (1663 days ago), so information in it may no longer be current.

VAUGHAN, Ont. – CannTrust Holdings Inc. plans to change its name after exiting creditor protection, with its subsidiary receiving $17 million in financing from a group of investors led by a Netherlands-based private equity investment company.

The beleaguered Ontario-based cannabis company has yet to unveil its new moniker but plans to convene a meeting of its shareholders within the next four months.

Marshall Fields International B.V., a subsidiary of Kenzoll B.V., has invested $11.2 million to acquire a 90 per cent equity interest in CannTrust Equity and provided a $5.5 million secured credit facility.

 A young cannabis plant is shown in Fenwick, Ont., Tuesday, June 26, 2018. THE CANADIAN PRESS/ Tijana Martin
 A young cannabis plant is shown in Fenwick, Ont., Tuesday, June 26, 2018. THE CANADIAN PRESS/ Tijana Martin

CannTrust retains the remaining 10 per cent of the common shares of CannTrust Equity.

The company has therefore now emerged from court-supervised proceedings under the Companies’ Creditors Arrangement Act.

It intends to either apply to the Ontario Securities Commission for an order revoking the OSC’s “failure-to-file” cease-trade order dated April 13, 2020 or take 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. Today we can take our first step forward, focusing our attention on the bright future that lies ahead, with our new partners, Kenzoll,” stated CannTrust CEO Greg Guyatt in a news release.

Founded in 2013, CannTrust faced class-action lawsuits from investors who said they lost millions of dollars after the company allegedly made misrepresentations about having necessary licences for growing cannabis.

Securities charges against three former executives — former chief executive Peter Aceto, former vice-chairman Mark Litwin, and former chairman Eric Paul — are set to be reviewed in Ontario court Sept. 20.

Aceto, Paul and Litwin each face charges of fraud, making false or misleading statements and authorizing, permitting or acquiescing in the commission of an offence. Litwin and Paul are also facing insider trading charges and Litwin and Aceto are charged with making a false prospectus and false preliminary prospectus.

The quasi-criminal charges were announced in June by the Ontario Securities Commission, roughly three years after CannTrust was found to be growing thousands of kilograms of cannabis in unlicensed rooms.

This report by The Canadian Press was first published March 15, 2022.

Report Error Submit a Tip

More Stories

Retired guidance counsellor defends explicit 2025 sex-ed presentation to high school football team in disciplinary hearing

Maggie Macintosh 7 minute read Preview

Retired guidance counsellor defends explicit 2025 sex-ed presentation to high school football team in disciplinary hearing

Maggie Macintosh 7 minute read Updated: Yesterday at 12:26 PM CDT

Gus Watanabe, a former employee of Oak Park High School in Winnipeg, was the subject of a public disciplinary hearing on Thursday.

Read
Updated: Yesterday at 12:26 PM CDT

Gordon Bell rings in a century

Maggie Macintosh 13 minute read Preview

Gordon Bell rings in a century

Maggie Macintosh 13 minute read Updated: Yesterday at 8:06 PM CDT

Mischka Valencia had gotten used to the hum of heavy machinery at Gordon Bell High School.

“Ever since I’ve been here, it’s all been under construction,” the Grade 12 student said, standing on the sidelines of the brightly painted revamped outdoor basketball court. “I had no idea this was a court.”

The Filipina teenager landed in Winnipeg several months after the inner-city campus had transformed into a construction site.

It was the fall of 2023 and Mischka’s priorities were fitting in, befriending classmates and learning a third language via first-period French.

Read
Updated: Yesterday at 8:06 PM CDT

International flavour: Canadian investors may want to make like Ottawa, diversify beyond U.S.

Joel Schlesinger 6 minute read Preview

International flavour: Canadian investors may want to make like Ottawa, diversify beyond U.S.

Joel Schlesinger 6 minute read 2:01 AM CDT

Canada is learning the hard way about the dangers of putting too many eggs in its U.S. economic basket.

Much has been made about the need to diversify our economy away from the United States.

Diversification is understandably beneficial. The more varied streams of revenue a nation has, the less affected the economy will be when one of those sources is interrupted.

The same can be said about investment portfolios.

Read
2:01 AM CDT

Volunteer pop-up library axed from Manitoba Youth Centre

Matthew Frank 4 minute read Preview

Volunteer pop-up library axed from Manitoba Youth Centre

Matthew Frank 4 minute read 2:01 AM CDT

Manitoba Corrections has cancelled a pop-up library program at the Manitoba Youth Centre, leaving inmates without librarian services and fewer options to borrow certain books.

The Prison Libraries Committee, part of the non-profit Manitoba Library Association, operated and funded the volunteer program since 2024 before it was shut down by the province last month. The group previously partnered with the province to offer the service because the facility has no dedicated library of its own.

“It is concerning that community members who are incarcerated, especially youth, are losing out on meaningful programming, access to information and rehabilitation efforts, which are offered at no cost to (Manitoba) Corrections. We urge Manitoba Justice to promote more library services and programming, not less,” said a Sept. 24 letter from the non-profit addressed to the justice minister.

Ashley Huot, chair of the Prison Libraries Committee, said she was puzzled when she received an email last month from Manitoba Corrections stating that the pop-up library was no longer needed.

Read
2:01 AM CDT

Broadening prediction-market gambling a bad idea

Editorial 4 minute read Preview

Broadening prediction-market gambling a bad idea

Editorial 4 minute read 2:01 AM CDT

Let’s make a prediction: sooner or later, when Canadian governments find a way to take their own cut of the action, prediction-contract gambling on everything from sports to entertainment to political decisions is going to come to Canada.

And that’s a horrible, dangerous, pernicious idea.

Unless you have particular access to information — either inside information or strategic information based on skills or education — you’re not likely to make money at it. In fact, structurally, you’re likely to lose. In prediction markets, you basically pay an amount, plus fees from the company involved, to bet on whether something will or will not happen within a certain time frame. The amount you pay for your contract depends on how other people are also betting.

As Wealthsimple describes it, “You buy whichever side you think is right. Prices move with demand, so if the market leans towards one outcome, the more that side costs. If a lot of people are backing the TSX to finish above 38,000, yes gets more expensive and no gets cheaper.”

Read
2:01 AM CDT

A day on the campaign trail: Winnipeg's mayor, seeking a second term, does double duty

Malak Abas 12 minute read Preview

A day on the campaign trail: Winnipeg's mayor, seeking a second term, does double duty

Malak Abas 12 minute read Updated: Yesterday at 5:56 PM CDT

In the weeks leading up to the civic election, Scott Gillingham has been performing a juggling act: he’s running to be Winnipeg’s 45th mayor, while still serving as its 44th.

“If someone asks me about the campaign, I’m going to answer them. But I think for most people, I’m the mayor of Winnipeg, even if I’m showing up as a candidate,” Gillingham, 58, says. “I try to do all I can to maintain that distinction.”

The Free Press joined Gillingham on a recent rainy September Saturday on the campaign trail, where he served in both roles during an event-laden day. City council’s final meeting before the Oct. 28 election was days earlier.

In Winnipeg, it’s rare for an incumbent to be defeated. But Gillingham knows his win in 2022 wasn’t exactly a landslide — he won with 27.5 per cent of the vote — and he’s been thinking about his second term ever since.

Read
Updated: Yesterday at 5:56 PM CDT