Cannabis Producer CannTrust Prepares for Potential Wind-Down

Canadian producer in negotiations to address DIP default
Former CEO and chairman face fraud charges in Ontario

Cannabis plants grow at a CannTrust production facility in Fenwick, Ontario, Canada. — Cannabis plants grow at a CannTrust production facility in Fenwick, Ontario, Canada.
Photographer: Galit Rodan/Bloomberg

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By Allison McNeely

January 6, 2022 at 5:18 PM UTC

This article is for subscribers only.

CannTrust Holdings Inc., the troubled Canadian cannabis producer whose former executives have been charged with fraud, is preparing to wind down if it can’t find a way to fix a default by the end of the month.

The Vaughan, Ontario-based company breached a minimum earnings covenant on its C$22.5 million ($17.7 million) bankruptcy loan, and is currently in negotiations with potential investors and strategic partners over ways to address the default and its liquidity shortfall, according to a Thursday statement.