VAUGHAN, ON, Aug. 19, 2019 /PRNewswire/ - CannTrust Holdings
Inc. ("CannTrust" or the "Company", TSX: TRST, NYSE: CTST) has
received a notice from the Ontario Cannabis Store (the "OCS"), the
Crown corporation in charge of wholesale distribution of cannabis
products to licensed cannabis retailers in Ontario and the operator of Ontario's online recreational cannabis store,
advising the Company that the OCS has determined certain of the
Company's products sold to the OCS are Non-Conforming Products
under the terms of the Master Cannabis Supply Agreement between the
Company and the OCS (the "Master Agreement") and that the OCS has
elected to return these products to the Company. Under the
terms of the Master Agreement, any product that does not comply
with applicable law is considered to be Non-Conforming Product and
the OCS may elect to exercise its right, among others, to return
such product to the Company at the Company's expense.
The products listed in the OCS return notice constitute all or
substantially all of the Company's products currently held at the
OCS and are valued at approximately $2.9
million in the aggregate. The Company intends to fully
perform its obligations under the Master Agreement. The OCS
operates independently of Health Canada. Health Canada has
not ordered a recall in respect of any of the Company's
products.
About CannTrust
CannTrust is a federally regulated licensed producer of medical
and recreational cannabis in Canada. Founded by pharmacists, CannTrust
brings years of pharmaceutical and healthcare experience to the
medical cannabis industry and serves medical patients with its
dried, extract and capsule products. The Company operates its
Niagara Perpetual Harvest Facility in Pelham, Ontario, and prepares and packages its
product portfolio at its manufacturing centre in Vaughan, Ontario. The Company has also
purchased 81 acres of land in British
Columbia and expects to secure over 240 acres of land in
total for low-cost outdoor cultivation which it will use for its
extraction-based products.
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 return of the Company's
products, the Company's performance under the Master Agreement, the
corrective actions being taken by the Company, and Health Canada's
pending determinations. Forward-looking information and statements
necessarily involve known and unknown risks, including, without
limitation: actions taken in respect of the Company's products by
its customers and regulators; results of Health Canada's
investigation, including orders and compliance measures required by
Health Canada and their impact on the operations, inventory, assets
and financial condition of the Company; the Company's
implementation of remediation plans and related
actions; regulatory approval; 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 cannabis industry in Canada generally; and, the ability of
CannTrust to 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
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.
The TSX and NYSE do not accept responsibility for the adequacy
or accuracy of this release.
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SOURCE CannTrust Holdings Inc.