CannTrust Securities Settlements

If you purchased the publicly traded common stock of CannTrust Holdings Inc. (“CannTrust”) in the secondary market or pursuant or traceable to CannTrust’s May 6, 2019 secondary offering, you may be entitled to a payment from several settlements.

Overview

After extensive negotiations under the auspices of a court-appointed mediator, CannTrust and the majority of defendants in class actions pending in the United States and Canada (“Actions”) have reached a global resolution of the claims asserted against them.

The Settlements will be implemented pursuant to an amended and restated plan of compromise, arrangement and reorganization of CannTrust, CannTrust Inc. and Elmcliffe Investments Inc. (as may be further amended from time to time in accordance with its terms), pursuant to Canada’s Companies’ Creditors Arrangement Act, R.S.C. 1985, c. C-36, as amended, (the “CCAA Plan”), which was approved by the Ontario Superior Court of Justice (Commercial List) (the “Canadian Court”) by a “sanction order” entered on July 16, 2021 (the “CCAA Sanction Order”).

The Settlements also obtained final approval in connection with the U.S. Class Action from the U.S. Court on December 2, 2021.

Who is eligible for compensation from the Settlements?

Pursuant to orders in the Actions, the following may be entitled to a recovery from the settlement proceeds:

All persons, wherever they reside or be domiciled, that purchased or otherwise acquired common shares of CannTrust during the period from June 1, 2018 through September 17, 2019, inclusive, except for Excluded Persons.

Click here for the list of Excluded Persons.

You must submit a Claim Form by March 16, 2022 in order to be eligible for a payment.

Important Information for U.S. Settlement Class Members

The U.S. Court directed, for the purposes of the Settlements in relation to the U.S. Class Action, that everyone who fits the following description is a member of the U.S. Settlement Class (a.k.a. a U.S. Securities Claimant) and subject to the Settlements, unless they are an Excluded Person or take steps to exclude themselves from the U.S. Settlement Class:

(i) all persons and entities who or which purchased the publicly traded common stock of CannTrust Holdings Inc. on the New York Stock Exchange (NYSE) or on any U.S. based trading platform during the period from June 1, 2018 through March 31, 2020, inclusive; and/or

(ii) all persons and entities who or which purchased or otherwise acquired CannTrust Holdings Inc. common stock pursuant or traceable to the Offering Materials (as defined in the Complaint) issued in connection with the secondary public offering, completed on or about May 6, 2019.

If you are not a member of the U.S. Settlement Class (U.S. Securities Claimant), you may be a “Canadian and Non-U.S. Securities Claimant,” which means all Securities Claimants other than U.S. Securities Claimants. Canadian and Non-U.S. Securities Claimants are also entitled to submit Claim Forms to participate in the Settlements. Residency does not determine whether you are a U.S. Securities Claimant or a Canadian and Non-U.S. Securities Claimant.

Click here for the list of Excluded Persons.