With Remediation Plan in Place, Company is
Focused Upon Board Renewal
VAUGHAN, ON, Oct. 28, 2019 /CNW/ – CannTrust Holdings Inc.
("CannTrust" or "the Company", TSX: TRST, NYSE: CTST) announced
that, following both the recent submission of its detailed
remediation plan to Health Canada and the completion of its Special
Committee's independent investigation, the Company has begun the
orderly process of renewing its Board of Directors. As part of this
process, John T. Kaden has resigned
from his position as Director.
Mr. Kaden is the co-Founder, Managing Partner, and Chief
Investment Officer of Navy Capital Green Management LLC., a global
investment firm specializing in the legal cannabis industry. He has
resigned in order to focus fully on the demands of this role. Mr.
Kaden was appointed to CannTrust's Board of Directors in
October 2018. In July 2019, Mr. Kaden was appointed to the Special
Committee of Directors that was created to investigate the causes
of the Company's non-compliance with Health Canada regulations.
"John made significant contributions to CannTrust during his
tenure," stated Robert Marcovitch,
CannTrust's Chairman and interim Chief Executive Officer. "We
deeply appreciate his dedication, in particular his enormous
commitment as a member of the Special Committee over the past three
months. With the completion of the Special Committee's
investigation and the submission of our detailed remediation plan
to Health Canada, we are now focused on developing the foundation
for CannTrust's future, including a renewal of our Board of
Directors."
CannTrust has initiated a search for both Mr. Kaden's
replacement and additional new Directors. The Company has been
engaging with several promising candidates who possess expertise in
operations, compliance, governance, and regulated industries. The
Company has also commenced a search for additional executive team
members, including a permanent Chief Executive Officer.
"With its remediation plan now underway, I believe CannTrust is
well positioned to fulfill its commitments to both bring the
Company into full regulatory compliance and seek the full
reinstatement of its licenses," stated Mr. Kaden. "I was honoured
to work with the Special Committee to help place CannTrust in this
position."
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 Supply 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.