CannTrust Announces Court Approval for C$22.5 Million Debtor-in-Possession and CCAA Exit Credit Facility Financing

CannTrust Holdings Inc. ("CannTrust" or the "Company") (unlisted) announced today that it has obtained approval from the Ontario Superior Court of Justice (Commercial List) under the Companies' Creditors Arrangement Act (Canada) (the "CCAA") for the Company's previously announced "debtor-in-possession" ("DIP") and CCAA Exit Credit Facility ("Credit Facility") arranged and agented by Cortland Credit Lending Corporation.

As announced by the Company on April 20, 2021, the Credit Facility consists of a revolving loan under which repayments and additional drawdowns will be permitted from time to time, provided that the amounts owing under the Credit Facility shall not exceed the Borrowing Limit of C$22.5 million. The Credit Facility will have a term of 12 months, which may be extended for an additional 12 months upon mutual agreement.

The Credit Facility will be secured by a first-ranking security interest over all assets of CannTrust, subject to certain Permitted Encumbrances and certain excluded assets and, during the pendency of the CCAA Proceedings, a first-ranking super-priority DIP financing charge, subject to some limited exceptions.

Funds advanced under the Credit Facility will be used to fund CannTrust's working capital needs and support the restoration of its operations, so that CannTrust can continue to rebuild stakeholder trust while delivering quality, innovative products to its patients and consumers.

The Company intends to file on www.sedar.com a copy of the definitive Term Sheet relating to the Credit Facility, redacted to omit certain commercially sensitive information that has been sealed by order of the Court.

CannTrust remains under CCAA protection to facilitate its efforts to resolve its civil litigation claims and complete its review of strategic alternatives, which includes a review of financing options. Aspects of the ongoing efforts remain confidential, and the Company is unable to predict with any certainty either their timing or outcome. In the meantime, the reinstatement of its cannabis licenses and the restoration of its ongoing operations, CannTrust's re-entry into the Canadian recreational and medical cannabis business segments and its entry into the Restructuring Support Agreement are essential to the Company's focus on rebuilding its franchise. For more information about CannTrust's CCAA proceedings, please visit: www.ey.com/ca/canntrust.

About CannTrust

CannTrust is a federally regulated licensed cannabis producer. We are proudly Canadian, operating a portfolio of brands including estora, Liiv and Synr.g, specifically designed to surprise and delight patients and consumers.

At CannTrust, we are committed to providing an exceptional customer experience, as well as consistent and quality products through standardized processes. Our greenhouse produces Grade A cannabis flower, which is currently sold in dried flower, oil drops and capsule formats. Founded in 2013, our continued success in the medical cannabis market and subsequent expansion into the recreational business, led to us being named Licensed Producer of the Year at the Canadian Cannabis Awards 2018.

CannTrust is committed to research and innovation, investing in developing technologies for new products in the medical, recreational, and wellness markets, while contributing to the growing body of evidence-based research regarding the use and efficacy of cannabis.

Learn more at www.canntrust.com.