CannTrust Holdings Inc. says its reorganization plan has been approved by the Ontario Superior Court of Justice.
The insolvent cannabis company said the restructuring under the Companies’ Creditors Arrangement Act remains subject to conditions, including U.S. court approval of a class action and expiration of appeal periods that are expected to be satisfied in the fourth quarter.
The Ontario-based company has previously said it anticipates hiring a new independent auditor in the third quarter and has initiated discussions with the Ontario Securities Commission about proposing a plan and timetable for curing the company’s historical disclosure defaults.
CannTrust faced civil litigation in the form of class-action lawsuits from plaintiffs who said they lost millions of dollars after CannTrust allegedly made misrepresentations about having necessary licences for growing.
The company says it expects to seek a revocation of the OSC’s cease-trade order from April 2020 and then pursue a new listing of its common shares on a Canadian stock exchange.
The company says it has made progress on fully restoring its operations and relaunched two recreational cannabis brands in late 2020 and introduced a new medical cannabis brand in early 2021.