DJ CannTrust Entered Restructuring Support Deal with Key Class Action Plaintiffs

By Stephen Nakrosis

Cannabis company CannTrust Holdings Inc. on Wednesday said it entered into a restructuring support agreement with key plaintiffs and their counsel involved in a class action suit.

According to CannTrust, the parties will settle the litigation by way of Canada's Companies' Creditors Arrangement Act.

"The RSA provides a comprehensive framework for settling the Securities Claims under a Court-approved plan of compromise, arrangement and reorganization," CannTrust said.

Greg Guyatt, chief executive, said "Today's announcement represents a significant milestone towards the resolution of substantially all of the civil litigation claims that were filed against CannTrust following the company's non-compliance with certain Health Canada regulations."

"Although much work remains to conclude the matters contemplated by the RSA, I am pleased that, in addition to relaunching our medical and recreational businesses, we are also making further tangible progress to exit from the CCAA and put CannTrust in a position to be a successful player in the cannabis industry," Mr. Guyatt added.

--Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

January 20, 2021 15:51 ET (20:51 GMT)

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