Canntrust Holdings (TSX: TRST) (NYSE: CTST) has finally settled with Stenocare of Denmark in relation to illegal product that was grown in Canntrust’s unlicensed facility and subsequently shipped to the Danish distributor. The settlement is also in connection with the subsequently terminated agreement following the loss of Canntrust’s cannabis licenses.
The settlement entered into by the two parties will see Stenocare receive $3.6 million Swedish Krona, the equivalent of approximately CAD$500,000 from that of Canntrust Holdings. Additionally, Canntrust, whom is one of Stenocare’s largest shareholders, will also return 272,727 common shares of Stenocare that the firm currently owns.
The settlement brings to an end the relationship between the two firms, which saw the contract formally terminated back in September 2019. In the time since, Stenocare has already contracted Emerald Health Therapeutics (TSXV: EMH) to be the replacement Canadian supplier of cannabis oil products, which Stenocare will then distribute domestically.
Canntrust Holdings last traded at $1.39 on the TSX.
Information for this briefing was found via Stenocare and Canntrust Holdings. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
