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CannTrust Health Canada Review Statement

VAUGHAN, ON 8. July 2019 / PRNewswire / – CannTrust Holdings Inc. ("CannTrust" or "Company", TSX: TRST, NYSE: CTST) has received a compliance report from Health Canada, notifying the Company that its greenhouse in Pelham, Ontario is not in compliance with certain provisions . CannTrust has accepted Health Canada's non-compliance and has taken steps to ensure current and future compliance.

The non-compliant assessment is based on observers from the regulator regarding the cannabis spread in five unlicensed rooms and inaccurate information provided by the CannTrust staff to the regulator. Growing in unlicensed spaces took place from October 201

8 to March 2019 during which period CannTrust was awaiting applications for these rooms with Health Canada. These rooms were built in accordance with rules and good manufacturing practices, and licenses were issued to each of the five rooms in April 2019. There are a total of 12 rooms in the facility. Canada Canada has put a hold on the inventory, which includes approx. 5,200 kg of dried cannabis harvested in the previously unlicensed rooms of Pelham until it considers that the company complies with rules. In addition, CannTrust has introduced a voluntary team of approx. 7,500 kg of dried cannabis equivalent on its Vaughan production plant produced in the previously unlicensed rooms.

CannTrust's activities on its Pelham and Vaughan facilities remain fully licensed and the company continues to cultivate, cultivate, harvest and sell cannabis. Health Canada conducts quality control of product samples on hold for Pelham with results expected in 10-12 working days. Due to the item on hold some CannTrust customers and patients will experience temporary product deficiency. The company is investigating opportunities to remedy these shortcomings.

All products sold from the affected rooms have passed quality control of Health Canada certified laboratories as well as CannTrust's own quality control processes and safety reviews.

"Our team has focused on building a culture of transparency, trust and excellence in all aspects of our business, including our interactions with the regulator. We've made many changes to do it right with Health Canada. We've made mistakes In the judgment, however, the lessons we have learned here will serve us well, " Peter Aceto CEO.

Corrective actions and additions to the CannTrust Executive Team

CannTrust has implemented a number of corrective actions, including:

  • Additional Comprehensive Employee Training
  • Preserved External Advisors for an Independent Review of Compliance Processes [19659010] Comprehensive review and update ate of processes and procedures
  • Voluntarily recommended Health Canada for issues that may affect compliance on its Vaughan Product Retention Facility

Improving the Quality and Compliance Function at the Company has been a priority for senior leadership. The first executive addition under the new management team was Andrea Kirk for the newly created role as Vice President, Quality. Ms Kirk brings nearly 20 years of quality and compliance experience from the pharmaceutical industry to CannTrust, and her mandate is to lead the Quality and Compliance Department. Since joining the company in March 2019 she has employed and trained 17 quality and compliance professionals.

Financial Outlook

At present, the impact of these conditions on CannTrust's financial performance is unknown until Health Canada carries out its quality testing of the product of Pelham as Currently is on hold. Additional updates will be provided as they become available.

About CannTrust

CannTrust is a federally regulated licensed manufacturer of medical and recreational cannabis in Canada . Founded by pharmacists, CannTrust delivers more than 40 years of drug and health experience to the medical cannabis industry and serves more than 72,000 medical patients with dried, extract and capsule products. The company operates its Niagara Perpetual Harvest Facility in Pelham, Ontario and prepares and packs its product portfolio at its manufacturing center of expertise in Vaughan, Ontario . The company has also bought 81 hectares of land in British Columbia and expects to secure over 240 hectares of land in all for cheap cultivation of cultivation it will use for its extractive products.

Forward-looking statements

This press release contains "forward-looking information" in the meaning of Canadian securities laws and "forward-looking statements" as defined in the United States Private Securities Litigation Reform Act 1995 and others applicable United States safe harbor laws, and such statements are based on CannTrust's current internal expectations, estimates, projections, assumptions, and beliefs and views on future events. Forward-looking information and forward-looking statements can be identified using forward-looking terminology such as "belief", "expect", "likely", "may", "will", "should", "intend" "expected", "potential", "proposed" "," estimates "and other similar words, including negative and grammatical variations thereof or statements that certain events or conditions" may "," would "or" will "occur or by discussion of the strategy.

The forward-looking information and statements contained in this press release include opinions on the expected timeframe and decision on the implementation of Health Canada's quality product test and its response to the Health Canada compliance report. Forward-looking information and statements necessarily necessitate known and unknown risks, including without limitation: results of Health Canada's quality product test; regulatory approval risks associated with general economic conditions unfavorable industrial events market losses future regulatory and regulatory developments in Canada United States and elsewhere; the cannabis industry in Canada in general; and CannTrust's ability to implement its business strategies.

Any forward-looking information and statements only speak from the date they are made and CannTrust does not undertake to update or revise forward-looking information or statements, whether due to new information, future events, or otherwise. New factors come from time to time and it is not possible for CannTrust to predict all such factors. When considering these forward-looking information and statements, readers should remember the risk factors and other warnings in CannTrust's annual information form dated March 28, 2019 ("AIF") and filed with the current Canadian Securities Regulators at SEDAR at www.sedar .com and filed as an exhibition CannTrust's Form 40-F annual report under the United States Securities Exchange Act of 1934 with subsequent amendments to the United Nations Securities and Exchange Commission at EDGAR at www.sec .gov. The risk factors and other factors listed in the AIF may cause actual events or results to differ materially from those described in forward-looking statements or statements.

TSX and NYSE do not accept responsibility for the adequacy or accuracy of this release.

SOURCE CannTrust Holdings Inc.

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