CannTrust Archives - Page 2 of 3 - Green Market Report

Debra BorchardtJuly 8, 2019

CannTrust Holdings Inc. (TSX: TRST)(NYSE: CTST) stock has fallen almost 20% after the company announced that a Health Canada audit found that the company was growing cannabis in five unlicensed rooms and inaccurate information was provided to the regulator by CannTrust employees. While the company’s name says trust, it seems Health Canada couldn’t trust the company to wait until the grow rooms were licensed before beginning work.

CannTrust said it has accepted Health Canada’s non-compliance finding and has taken actions to ensure current and future compliance. The company stated that the growing in the unlicensed rooms took place from October 2018 to March 2019 during which time CannTrust had pending applications for these rooms with Health Canada. These rooms were constructed in accordance with regulations and Good Production Practices, and licenses were issued for each of the five rooms in April 2019. There are 12 rooms in total at the facility.

Health Canada has apparently placed a hold on inventory which includes approximately 5,200kg of dried cannabis that was harvested in the previously unlicensed rooms in Pelham until it deems that the company is compliant with regulations. In addition, CannTrust said it has instituted a voluntary hold of approximately 7,500kg of dried cannabis equivalent at its Vaughan manufacturing facility that was produced in the previously unlicensed rooms.

“Our team has focused on building a culture of transparency, trust, and excellence in every aspect of our business, including our interactions with the regulator. We have made many changes to make this right with Health Canada. We made errors in judgment, but the lessons we have learned here will serve us well moving forward,” said Peter Aceto, Chief Executive Officer. The company couldn’t acknowledge how these actions would affect its financial statements.

Health Canada is conducting quality checks of product samples on hold at Pelham, with results expected in 10 to 12 business days. Due to the product on hold, some CannTrust said its customers and patients will experience temporary product shortages. The company said it is exploring options to mitigate these shortages.

CannTrust Reacts

CannTrust said it has implemented a number of corrective actions including:

Further comprehensive employee training
Retained external advisors for an independent review of compliance processes
Comprehensive review and update of processes and procedures
Voluntarily advised Health Canada of issues that may impact compliance at its Vaughan facility regarding product storage

The company has also hired Andrea Kirk, for the newly created role of Vice President, Quality. Since joining the company in March 2019, she has hired and trained 17 quality and compliance professionals.

The stock has had a 52-week high of $11.97 and was lately trading at $3.95.

Debra BorchardtJune 19, 2019

CannTrust Holdings Inc. (NYSE: CTST) shares popped over 5% in early trading on news that the company had formed a joint venture with California hemp grower Elk Grove Farming Company. CannTrust is a Canadian cannabis company founded by pharmacists and this would be the company’s entry into the United States. The company said it expects to invest roughly $20 million in the operation by the end of 2020. The shares were lately trading at $5.22.

CannTrust signed a non-binding Letter of Intent with Elk Grove that will provide access to over 3,000 acres of farmland for hemp production. Elk Grove will be able to provide low-cost hemp with high cannabidiol (CBD) content. CannTrust and Elk Grove will each have 50% ownership of a new entity or joint venture.

The company said that prior to the commercial scale cultivation from the Joint Venture in 2020, CannTrust plans to execute on its processing strategy from the biomass produced from the Joint Venture, and its product development strategy. The company said that extracted product from the California operation in proprietary products has already been developed and that are ready for commercial production. The company specifically mentioned patented single-serve beverage pods.

“This agreement represents another bold move for CannTrust. Our U.S. operation is expected to deliver a significant increase in low-cost production capacity, which will leverage our expertise in standardized CBD-based product formulation, and will give the Company a foothold in the largest international CBD market in the world with an experienced and knowledgeable partner,” said Peter Aceto, Chief Executive Officer of CannTrust. “Following our successful equity offering, we have the liquidity we need to fund our ambitious growth plans including our greenhouse expansion in Niagara, our outdoor cultivation operation in British Columbia, our global footprint expansion and now our U.S. operation.”

According to the statement, Elk Grove has multi-generational experience in farming across a wide variety of commodities and value-added expertise in leading crop protection products, application, and input supply with operations throughout the State of California. “We are thrilled to be partnering with CannTrust. Our knowledge of farming operations in California coupled with CannTrust’s expertise in developing award-winning formulations is the perfect match to become a trusted supplier of CBD products in the U.S,” said Morgan Houchin of Elk Grove Farming Company.

StaffMay 14, 2019

CannTrust

CannTrust Holdings Inc. (TSX:TRST) (NYSE:CTST) reported that its quarterly revenue rose 115% to $16.9 million versus last year’s $7.8 million for the same time period. 67% of the revenue came through the medical channel and 33% through the recreational channel for the quarter ending March 31, 2019. The net income for the quarter was $12.8 million, a big improvement sequentially over the loss of $25 million reported in the fourth quarter of 2018.

“The CannTrust team delivered exceptional operational growth in the first quarter, with harvested production of over 9,400kg. This is a 96% increase in production over the prior quarter and reflects the impact of the investments made into our facilities, as well as process improvements to increase throughput,” said Peter Aceto, CannTrust CEO. “With the successful closing of our equity offering providing gross proceeds of US$170 million, we are well positioned to execute on our growth plans. Our fully-permitted Phase 2 expansion is expected to reach its full capacity of 50,000kg on an annual basis in the third quarter of 2019, and our 81 acres of land for outdoor cultivation has been prepared and we are awaiting regulatory approval to start planting. We have commenced work on our Phase 3 expansion in Niagara, which we expect will add a further 50,000kg of annual capacity. All told, we continue to expect to exit 2020 at a production rate of between 200,000kg to 300,000kg per year.”

CannTrust report that it sold over 3,000kg of dried cannabis equivalent, a nearly 200% increase over the prior year, at an average net price of $5.47 per gram. The company said that cost of sales per gram sold and cash cost per gram sold were $3.03 and $2.77, respectively, compared to $3.08 and $2.94, respectively, in the fourth quarter of 2018. The total active patient count reached 68,000 on March 31, 2019, a 70% increase over the first quarter of 2018

Looking Ahead

The company acquired 81 acres of land in British Columbia for outdoor cultivation with a potential yield of 75,000kg of production in 2019, subject to regulatory approval. CannTrust obtained all necessary permits from the Town of Pelham for the construction of the 390,000 square foot Phase 3 expansion.

The company is developing innovative products for the expected legalization of new product formats in Canada later in 2019. These products include vape pens, beverages, confectionaries, and healthcare products. CannTrust said it is also making strategic investments into its operational capacity to prepare for expected increases in demand for its products.

Supreme Cannabis

The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) reported that its third-quarter 2019 net revenue was $10 million, a 382% increase from $2.1 million in Q3 2018 and a 29% sequential increase from the second quarter. Still, the company delivered a net loss of $7.1 million for the quarter, almost double the net loss of $3.3 million for the same time period in 2018.

“Our Company is pleased with the results of our third quarter financials and with the progress made thus far on our strategic priorities for the 2019 calendar year. This quarter saw a marked increase in revenue on both an annual and quarter-over-quarter basis. This revenue growth was driven by an increase in our capacity at the 7ACRES facility, a ramping up of our product packaging capabilities and, we believe, consumer preference for high-quality cannabis,” said Navdeep Dhaliwal, CEO of The Supreme Cannabis Company, Inc.

The company said that across Canada, sales revenue from recreational markets increased 63% between FYQ22019 and FYQ32019. Over the quarter, Supreme said it worked with MediPharm Labs Inc. (TSXV: LABS), a leading cannabis extractor, to produce its premium oil products line. As announced in November 2018, under MediPharm and Supreme Cannabis’ three-year contract, 7ACRES will supply a minimum of approximately 1,000 kg of high-quality cannabis trim per year as input to MediPharm for the extraction and production of premium, high-terpene cannabis oil products.

Halo Labs

Halo Labs Inc. (AGEEF) reported first-quarter 2019 revenue of $8,718,503 versus $2,168,976 in first quarter period in 2018. The company is projecting nearly $50 million in revenue and 332 percent organic growth over 2018. The company also delivered a $2.9 million net loss for the quarter, higher than last year’s net loss of $1.8 million for the same time period.

The revenue increased 302% over the year with first-time contributions from Coastal Harvest and HLO Ventures the California and Nevada operations, respectively. There was also a 32.8% increase in revenues at the Oregon operation known as ANM, Inc. ANM revenues were $2,879,769 in the quarter versus $2,168,976 during the same period in 2018. Coastal Harvest commenced its first year with revenues of $5,324,369, while HLO posted inaugural revenues of $514,365.

William SumnerMay 2, 2019

It’s time for your Daily Hit of cannabis financial news for May 2, 2019.

On The Site

Canopy Growth

Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) is acquiring the German-based, Bionorica SE-founded C³ Cannabinoid Compound Company in an all-cash deal valued at €225.9 million (CDN $342.9 million) or roughly $250 million. The move is intended to expand Canopy Growth’s reach in Europe.

Plus Products

Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF) reported its results for the fourth quarter and calendar year ending December 31, 2018. The quarter’s revenues were $3.3 million and the company delivered a net loss of $2.9 million. This was an increase in sales of 770% over 2017 for the same time period and a 31% sequential increase.

Executive Order Establishes Michigan Marijuana Regulatory Agency

Governor Whitmer’s executive order 2019-07 has established the Marijuana Regulatory Agency (MRA) within the Department of Licensing and Regulatory Affairs (LARA), combining previous authorities, functions, and duties into an agency which allows the state of Michigan to more efficiently regulate both medical and adult-use marijuana.

In Other News

Planet 13

Planet 13 Holdings Inc. (CSE: PLTH) (OTCMKTS: PLNHF) has announced their fourth quarter and full-year financial results for 2018. In the fourth quarter, revenues rose to $8.3 million. Adjusted EBITDA was a loss of $1.9 million, and the company had a net loss of $4 million. For the year, revenues were $21.2 million, adjusted EBITDA was a loss of about $0.5 million, and the company incurred a net loss of $10.7 million.

TILT

TILT Holdings Inc. (CSE: TILT) (OTCMKTS: SVVTF) has announced their year-end financial results for 2018. Revenue for the year was $5.7 million with an additional $98 million in pro forma revenue. The net loss was $552.1 million, but that included a $496.4 million one-time, non-cash goodwill impairment taken at the end of fiscal 2018 related to the company’s reverse takeover of Sante Veritas Holdings. Excluding the reverse takeover, the company’s net loss was $55.7 million.

True Leaf

The pet-focused hemp and cannabis wellness brand, True Leaf Medicine International Ltd. (CSE: MJ) (OTCQX: TRLFF) (FSE: TLA) announced today that they have received C$914,442.73 from the exercise of warrants before their expirations on April 21, 2019. In total, the company exercised 2,575,895 warrants at a price of C$0.355 per warrant. “True Leaf is proud to have strong support from our investor community as demonstrated by the successful warrant exercise,” said Darcy Bomford, Founder and CEO of True Leaf. “This additional capital will strengthen our balance sheet and allow us to continue to execute on our growth plans, including bringing a legally-compliant CBD product for pets to market and expanding our global distribution, including entering new markets in the Asia Pacific region and Australia.”

Alternate Health

Alternate Health Corp. (CSE: AHG) (OTCQB: AHGIF) is making a play for the CBD industry. Today the company announced that it will acquire Blaine Labs Inc., a manufacturer and distributor of FDA-approved and cGMP-certified dermatological products, for $20 million. Blaine Labs currently has over 50 SKUs currently available in major retailers, including Walmart, Amazon, CVS and Walgreens. Alternate Health hopes to use the company’s existing equipment and distribution network to launch a proprietary line of CBD-infused products.

CannTrust

CannTrust Holdings Inc. (TSX: TRST) (NYSE: CTST) has announced the pricing of its previously-announced underwritten public offering. The company is selling 30,909,091 common shares at a price of $5.50 per share for gross proceed of around $170 million, minus underwriting discounts and commissions and estimated offering expenses. Some shareholders are also selling 5,454,545 common shares in the offering. Additionally, the company has granted to the underwrites a 30-day option to purchase up to an additional 4,636,363 and 818,182 common shares, respectively, at the public offering price. The offering is expected to close on or around May 6, 2019.

William SumnerApril 22, 2019

It’s time for your Daily Hit of cannabis financial news for April 22, 2019.

On The Site

CannTrust

Ontario-based CannTrust Holdings Inc. (TSX: TRST) (NYSE: CTST) reported preliminary estimates for the quarter ending March 31, 2019, with net revenue expected to be approximately $17 million, an increase of 116% versus the $7.8 million for the same time period in 2018. CannTrust also announced that it had begun an underwritten public offering of $200 million common shares, in which approximately 85% of the common shares are to be sold in the offering by the company and about 15% of the common shares to be sold in the offering by certain shareholders.

FDA Public Hearing On Hemp – Uncle Sam Wants You To Talk

The FDA is however finally allowing the public to weigh in, with the announcement of a Public Hearing to take place on May 31, 2019. What’s more, is that the Agency is allowing submission of public comment until July 2, 2019 and seems to earnestly want feedback from the hemp industry.

In Other News

PAX Labs

PAX Labs Inc., a consumer technology company that specializes in cannabis vaporizers, announced that the company had raised $420 million in equity financing from institutional investors, including Tiger Global Management and Tao Capital Partners. Pax Labs is best known as the vaporizer company from which the popular e-cigarette brand Juul originally spun off of. Speaking with Tech Crunch, a Pax Labs spokesperson said that the post-money valuation of the company is now $1.7 billion.

Cannabis One

Cannabis One Holdings Inc. (CSE: CBIS) announced that is executed three definitive agreements to acquire certain assets of the Nevada-based cannabis brand house Evergreen Organix. The agreements include the acquisition of cultivation and manufacturing licenses in the state of Nevada, intellectual property rights, product formulations, logistic operations, etc…The president of Evergreen Organix, Jerry Velarde, will also join Cannabis One as Chief Marketing Officer following closing. “Having already established a reputation centered around brand quality and consistency in the minds of cannabis consumers – we are now excited to jointly announce the contribution of our Evergreen Organix suite of brands, which includes the substantial cultivation and manufacturing infrastructure we have been building since 2015 in the Nevada marketplace, to Cannabis One’s growing ‘House of Brands’,” Velarde said in a statement.

Supreme Cannabis

The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) announced today that it is launching a cannabis genetics company and has pledged to invest approximately $14 million to develop a research facility for the new company. Named Cambium Plant Sciences, the company will focus on researching and developing new cannabis strains for the adult-use and medical markets, as well as health and wellness applications. Dr. Alan Darlington, who previously served as Director of Special Projects for Supreme’s subsidiary 7ACRES, will lead Cambium as General Manager.

Debra BorchardtApril 22, 2019

Ontario-based CannTrust Holdings Inc. (TSX: TRST) (NYSE: CTST) reported preliminary estimates for the quarter ending March 31, 2019, with net revenue expected to be approximately $17 million, an increase of 116% versus the $7.8 million for the same time period in 2018. CannTrust said that the estimated increase in revenue is primarily due to a 68% increase in medical patients combined with the contributions from the Canadian adult-use recreational market, which was legalized in October of 2018.

The net income before income taxes is expected to be between $12 million and $14 million as compared to $11.4 million and adjusted EBITDA a loss of between $3.5 million and $4.5 million versus $0.3 million, for the quarter ended March 31, 2018. The estimated decrease in Adjusted EBITDA is primarily due to deliberate and disciplined operational investments to support the Company’s planned growth initiatives. The estimated increase in Adjusted EBITDA is primarily due to increased gross profit, before the unrealized gain on changes in fair value of biological assets combined with lower operating expenses.

The gross profit is expected to be between $27 million to $28 million versus last year’s $21 million for the same time period last year. The estimated increase in gross profit is primarily due to an increased in unrealized fair value gains on biological assets and an increase in gross profit, before changes in fair value of biological assets. The expected gross profit is a nice turning point from last year’s gross loss of $8.3 million realized during the previous quarter that ended December 31, 2018.

“These preliminary results represent the excellent efforts the CannTrust team has made in increasing output at our Niagara perpetual harvest greenhouse. We are quickly approaching our stated capacity of 50,000kg per year from our Phase 2 expansion. Our 96% sequential increase in production over the prior quarter will enable us to service both our rapidly growing base of medical patients and the high demand in the recreational market for our award-winning products and brands.” said Peter Aceto, Chief Executive Officer. “We expect gross margins between 42% to 46% in the first quarter of 2019, and plan to deliver continued improved profitability as our volumes increase, as we make targeted price increases and as we realize the benefits of our low-cost high-quality production strategy.”

Cost Of Goods Sold Decreases Sequentially

The cost of goods sold is expected to be between $9 million to $10 million, an increase of approximately 231% at the midpoint of the range as compared to $2.9 million for the quarter ended March 31, 2018. The company attributed the estimated increase in the cost of goods sold to an increase in sales. The estimated cost of goods sold represents a decrease of approximately 9% as compared to $10.5 million for the previous quarter. The estimated decrease in the cost of goods sold is primarily due to lower growing cost per gram as harvested quantities increased.

Gross margin excluding changes in fair value of biological assets is expected to be between 42% and 46%, a decrease of 19% at the midpoint of the range as compared to 63% for the quarter ended March 31, 2018. This estimated decrease is primarily due to lower per unit revenues realized from the adult-use recreational market as a result of the wholesale distribution model. The estimated gross margin excluding changes in fair value of biological assets represents an increase of 9% at the midpoint of the range as compared to 35% for the quarter ended December 31, 2018.

$200 Million Offering

CannTrust also announced that it has begun an underwritten public offering of $200 million common shares, in which approximately 85% of the common shares are to be sold in the offering by the company and approximately 15% of the common shares to be sold in the offering by certain shareholders. In connection with the offering, the company and the Selling Shareholders expect to grant to the underwriters a 30-day option to purchase up to an additional 15% of the number of common shares sold in the offering.

CannTrust said that it intends to use the net proceeds of the offering for general corporate purposes, including cultivation and facility expansion, expanded outdoor growing, international expansion, enhanced extraction capacity, upgrades for GMP Certification and biosynthesis development. The company said it has not yet determined to pursue any particular research and development initiative requiring the use of a portion of the net proceeds of the offering and will evaluate research and development initiatives as they present themselves, including the terms, capital requirements or timing of any such initiatives.

William SumnerMarch 28, 2019

Sales are up, but profits are on the decline for CannTrust Holdings Inc. (NYSE: CTST) as the company releases their financial results for the fourth quarter and year ending on December 31, 2018.

Revenue for the company increased to $16.2 million, representing an increase of 132% over the same quarter in the previous year. This rise in revenue was attributed to the start of recreational cannabis sales in Canada. However, some of those increased sales were offset by excise taxes on medical cannabis products; approximately $0.9 million.

“The CannTrust team has delivered remarkable growth in the fourth quarter of 2018. We achieved record sales volume, record revenue and our medical patient count continues to increase, reflecting the quality of our products and customer service,” said CannTrust CEO Peter Aceto.

In the fourth quarter, CannTrust sold 3,407 kilograms of cannabis, which is up from the 758 kilograms that the company sold in the same period in 2017. Over the last year, the company increased its active cannabis patient count from 37,000 to 58,000.

The company’s cash cost per gram declined by 42%, falling from $5.16 to $2.94. However, gross margins before fair value changes to biological assets also declined, falling from 69% in the third quarter to just 35%. Management has attributed the steep drop off to lower pricing on wholesale sales, excise taxes on medical cannabis sales, and the fact that the company is not yet operating at full production capacity.

Similarly, adjusted EBITDA declined as well; dropping from a loss of $0.9 million to a loss of $8.5 million. The company claims that the increased losses were a result of deliberate investments in support of growth efforts; such as marketing costs to launch four recreational cannabis brands, international strategy, personnel, and the costs associated with preparing the company to list its stock on the New York Stock Exchange.

Despite its losses, CannTrust still has 72.0 million in cash and short-term investments, and a working capital position of $111.6 million. CannTrust’s stock is currently trading at or around $8.30 per share.

Debra BorchardtMarch 4, 2019

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.

StaffAugust 14, 2018

GrowGeneration Corp.

GrowGeneration Corp. (GRWG), one of the largest specialty retail hydroponic and organic gardening stores, selling to both the commercial and home cannabis markets, with currently 18 locations, reported financial results for its 2nd quarter ended June 30, 2018.

The company delivered revenue of $7.15 million, up 74% compared to revenue of $4.1 million for the 2nd quarter of 2017. Store operating costs have declined 13% from 18.2% for the 2nd quarter 2017 to 16.1% for the 2nd quarter of 2018. YTD revenue of $11.5 million, up 72% compared to YTD revenue of $6.7 million for 2017. YTD store operating costs have declined from 19.4% for the six months ended June 30, 2017, to 17.6% for the six months ended June 30, 2018.

The company had $17.4 million in cash and cash equivalents at June 30, 2018. As of June 30, 2018, the company had working capital of $24.5 million compared to working capital of $5.6 million at December 31, 2017.

Surna Inc.

Surna Inc. (SRNA) announced operating and financial results for the three and six months ended June 30, 2018. Surna Inc. designs, engineers and manufactures application-specific environmental control and air sanitation systems for commercial, state- and provincial-regulated indoor cannabis cultivation facilities in the U.S. and Canada.

The company reported that its Q2 2018 revenue was $2,008,000, a decrease of $47,000, or 2%, compared to Q1 2018. It had Q2 2018 net bookings of $3,867,000, a decrease of $756,000, or 16%, compared to Q1 2018. The ending backlog as of June 30, 2018, was $8,883,000, an increase of $1,859,000, or 26%, compared to the March 31, 2018 backlog, and its largest quarter-end backlog. The Q2 2018 gross profit margin was 26%, an increase of seven percentage points from its Q1 2018 gross profit margin.

CannTrust Holdings Inc.

CannTrust Holdings Inc. (TRST), a Canadian licensed producer of medical announced financial and operating results for the three and six months ending June 30, 2018. All amounts expressed are in Canadian dollars.

Revenue for the three and six month periods ended June 30, 2018 was $9,050,239 and $16,890,086 respectively, compared to $4,541,378 and $7,574,623 in the comparable 2017 periods. Net income for the three and six month periods ended June 30, 2018, was $104,905 and $11,547,015respectively, compared to a net income of $754,864 and a net loss of ($23,040) in the comparable 2017 periods.

Earnings for the current period were impacted by approximately $1.5 million of increased costs associated with the ramp-up of the Niagara Perpetual Harvest Facility. Earnings per share for the three and six month periods ended June 30, 2018, was $Nil and $0.12 respectively, compared to earnings per share of $0.01 and $Nil in the comparable 2017 periods.

William SumnerJune 5, 2018

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.”

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