CannTrust Holdings Inc. (“CannTrust” or the “Company”) (TSX: TRST, NYSE: CTST) announced today that both the Special Committee of its Board and its new executive leadership team continue to make progress on bringing CannTrust’s operations and procedures into full regulatory compliance and ensuring the Company’s future. As part of these efforts, the Company is reducing its workforce.

“We have made the extremely difficult decision to restructure our workforce to reflect the current requirements of our business,” said Mr. Robert Marcovitch, CannTrust’s interim Chief Executive Officer.  “These changes also position the Company to better serve our patients and customers with high quality, innovative products in the future.”

CannTrust reduced its workforce by approximately 180 people, or 20%. This action is expected to result in annual cash savings of about $9 million, as well as the Company recording approximately $2 million in severance costs.  The majority of the affected employees were in cultivation and customer service support roles.

“Over the past two months, we have moved swiftly to assess and address the Health Canada report indicating areas of non-compliance in our operations, as well as the findings of the Special Committee’s independent investigation,” continued Mr. Marcovitch. “We remain fully committed to building the organization we need for future success and rebuilding the trust of all of our stakeholders.”

Since CannTrust’s announcement in July of Health Canada identifying non-compliance in certain aspects of the Company’s operations, the Company has:

• Appointed a Special Committee of the board to investigate the causes and extent of the Company’s non-compliance and to provide oversight and direction to the Company’s remediation efforts and strategic review
• Retained independent advisors to investigate and remediate the Company’s non-compliance under the supervision of the Special Committee
• Terminated Chief Executive Officer, Mr. Peter Aceto for cause and demanded the resignation of Chair, Mr. Eric Paul
• Appointed Mr. Robert Marcovitch as interim Chief Executive Officer
• Placed a voluntary hold on the sale and shipment of all cannabis products
• Developed a comprehensive remediation strategy to achieve full compliance with Health Canada’s regulations
• Commenced a review of the Company’s strategy and business plan

“CannTrust is committed to acting decisively on the findings from the Special Committee’s investigation and on executing its Remediation Plan in a timely manner,” concluded Mr. Marcovitch.   “Furthermore, we are currently developing a comprehensive go-forward business strategy. I look forward to sharing our vision for CannTrust’s successful future over the weeks and months to come.”

SOURCE CannTrust Holdings Inc.