CannTrust To Change Name As It Exits Bankruptcy
Date
3/16/2022 10:15:22 AM
(MENAFN- Baystreet.ca)
CannTrust To Change Name As It Exits Bankruptcy
Cannabis producer CannTrust Holdings (CNTTQ) says it plans to change its name after exiting bankruptcy protection.
The beaten down Ontario-based cannabis company has yet to unveil its new name but says it plans to convene a meeting of its shareholders within the next four months to decide on new branding.
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 this coming September.
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. The charges were announced last June by the Ontario Securities Commission (OSC), roughly three years after CannTrust was found to be growing thousands of kilograms of cannabis in unlicensed rooms.
CannTrust says it has received $17 million in financing from a group of investors led by a Netherlands-based private equity investment company, which has enabled it to emerge from bankruptcy protection.
Marshall Fields International B.V. has invested $11.2 million to acquire a 90% equity stake in CannTrust. The remaining 10% of the common shares are being retained by CannTrust.
CannTrust stock has fallen 98% over the past year and today trades at $0.02 U.S.
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