Mr. Robert Marcovitch reports

CANNTRUST ANNOUNCES THE WITHDRAWAL OF AUDITORS' REPORT

Canntrust Holdings Inc.'s independent auditor, KPMG LLP, chartered professional accountants, has informed the company that effective Aug. 8, 2019, is withdrawing its report dated March 27, 2019, on the company's consolidated financial statements as at and for the year ended Dec. 31, 2018, and its interim report to the audit committee dated May 13, 2019, on the unaudited condensed interim consolidated financial statements as at and for the three-month period ended March 31, 2019, and therefore, the KPMG reports should no longer be relied upon. KPMG remains Canntrust's independent auditor. The company's co-operation with KPMG is being directed by the company's audit committee and a special committee of its board of directors which is conducting a continuing investigation into various matters.

As previously disclosed, management is of the view that there is significant uncertainty with respect to the potential impact of pending Health Canada decisions on the valuation of the company's inventory and biological assets and revenue recognition. Accordingly, Canntrust cautions against any reliance on its consolidated financial statements as at Dec. 31, 2018, and interim consolidated financial statements as at and for the three-month period ended March 31, 2019. Canntrust is continuing to co-operate with Health Canada and the impact of the matters being investigated by the special committee on Canntrust's financial results is unknown at this time. Further updates, to the extent material, will be provided as they become available.

KPMG's decision was prompted by the company's caution against reliance on its financial statements for the year ended Dec. 31, 2018, and for the three months ended March 31, 2019, as well as the recent sharing with KPMG of newly uncovered information from the special committee's investigation, including information that led to senior leadership changes announced on July 25, 2019. KPMG was not aware of the information recently shared by the company when it issued the KPMG reports and had relied upon representations made by individuals who are no longer at the company.

"We will continue co-operating with our auditor and regulators, and take whatever steps are necessary to restore full trust in the company's regulatory compliance. Our medical patients, customers, shareholders and employees deserve nothing less," said Robert Marcovitch, the company's chief executive officer.

About Canntrust Holdings Inc.

Canntrust is a federally regulated licensed producer of medical and recreational cannabis in Canada. Founded by pharmacists, Canntrust brings more than 40 years of pharmaceutical and health care experience to the medical cannabis industry and serves medical patients with its dried, extract and capsule products. The company operates its Niagara perpetual harvest facility in Pelham, Ont., and prepares and packages its product portfolio at its manufacturing centre in Vaughan, Ont.

We seek Safe Harbor.