CannTrust Files C$700 Million Offering

CannTrust Holdings Inc. (TSX: TRST) (NYSE: CTST) filed and received a receipt for a preliminary short form prospectus with the securities commissions in each of the provinces of Canada, except Québec, and with the U.S. Securities and Exchange Commission (SEC) to offer up to C$700,000,000 of debt securities, warrants, subscription receipts, units or common shares, or any combination. CannTrust just began trading on the NYSE last week as it uplisted from the OTC Markets.

CannTrust is a federally regulated licensed producer and distributor of medical and recreational cannabis in Canada. The company’s strategy is to produce the highest quality, standardized cannabis products. It is dedicated to the “pharmaceuticalization” of the medical cannabis market. CannTrust has launched four recreational cannabis brands and has entered into supply agreements with Ontario, British Columbia, Alberta, Saskatchewan, Manitoba, Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island.
In December the company said that its fully-permitted Phase II expansion remained on course to bring the company’s capacity to 50,000 kg per year. CannTrust said it expects the first harvest from the expansion in Q1/19. Construction of the final range should be complete in January 2019. In addition to its Phase II expansion, the company has proceeded to build a 35,000 sq. ft. greenhouse facility adjacent to its current greenhouse. This facility is also fully-permitted.
“We initially applied for 10 permits relating to the development of our Phase III expansion. We’re still working with the municipality to have all those permits approved,” said Michael Camplin, General Manager of CannTrust‘s Niagara operations. “We respect the Town of Pelham’s process. We have multiple strategic alternatives available to us and we hope Pelham is one of them.”
The company is developing nanotechnology to develop new products in the medical, recreational, beauty, wellness and pet markets. It has established its international footprint through strategic partnerships for distribution and growth of cannabis products in Australia and Denmark. CannTrust has also partnered with Breakthru Beverage Group through Kindred Canada, for recreational distribution in Canada.
CannTrust is committed to research and innovation through partnerships with McMaster University in Ontario and Gold Coast University in Australia, which was designed to contribute to the growing body of evidence-based research regarding the use and efficacy of cannabis.
The stock was lately trading at C$12.49, which is above the 52-week low of C$5.86, but below the year’s high of C$15.50. CannTrust was voted Top Licensed Producer of the Year at the 2018 Canadian Cannabis Awards.

Debra Borchardt

Debra Borchardt is the Co-Founder, and Executive Editor of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Master's degree in Business Journalism from New York University.

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