Medical cannabis producer CannTrust Holdings Inc. (TRST) announced today that is has closed its previously announced short form prospectus offering, on a bought deal basis. The announcement comes in the wake of a very strong fourth quarter and full-year financial report in which the company’s profits exceeded its losses and annual revenue rose from C$4.3 million to C$20.6 million.
Including the full exercise of the over-allotment option, CannTrust sold a total of 11,155,000 units of the company, at a price of C$9.00 per unit, for a total exceeding C$100 million. A unit of the company consists of one common share and one half of one common share purchase warrant. A common share purchase warrant entitles the holder to acquire one common share of the company, at a price of C$12 per share, until June 5, 2020.
A series of underwriters, co-led by Canaccord Genuity Corp. and GMP Securities L.P., completed the offering and included the following firms; Echelon Wealth Partners Inc., Bloom Burton Securities Inc., Cormark Securities Inc. and Haywood Securities Inc.
CannTrust Partner Secures Sponsor
CannTrust also announced today that its healthcare plan claims adjudication partner, NexgenRx (NXG), has secured its has secured its first plan sponsor to include cannabis as a benefit under its patient plan. Members of the patient plan will be able to order medical cannabis from CannTrust and have a portion of their prescription covered. Members will be able to take advantage of their plan as soon as July 1, 2018.
“CannTrust is thrilled after announcing our recent partnership with NexgenRx, to have secured a first customer so quickly,” commented Brad Rogers, President of CannTrust. “We are excited to be able to offer these plan members a seamless process for ordering safe and convenient dosages of medical cannabis and are eager to expand this offering to more patients across Canada.”