CannTrust Holdings obtained approval from the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act for the company’s previously announced debtor-in-possession and CCAA exit credit facility, which was arranged and agented by Cortland Credit Lending.

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 $18.2 million (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.

CannTrust will use funds advanced under the credit facility to fund its working capital needs and support the restoration of its operations.

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.

CannTrust is a federally regulated licensed cannabis producer.