How CannTrust Holdings Inc (OTCMKTS:CNTTF) is Tapping Into a Formula for Success

How CannTrust Holdings Inc (OTCMKTS:CNTTF) is Tapping Into a Formula for Success

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While the cannabis patch has been red hot in 2019, one stock that has been hotter than most, and certainly one that started off this week with a major bang, is CannTrust Holdings Inc (OTCMKTS:CNTTF). To help add further color to the story, the company just announced it has obtained the necessary permitting from the Town of Pelham to proceed with its Phase III expansion with the construction process set to commence immediately.

According to the release, “The revised Phase III expansion is permitted for a footprint of up to 390,000 square feet, compared to the 600,000 square feet in the Company’s initial application. However, with enhancements to the Phase III facility above and beyond the specifications initially contemplated, CannTrust maintains its total production capacity forecast of 100,000 kg per year after completion of the Phase III construction.”

CannTrust Holdings Inc (OTCMKTS:CNTTF) bills itself as a company that produces and distributes pharmaceutical grade medical cannabis products in Canada.

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 healthcare experience to the medical cannabis industry and serves over 57,000 medical patients with its dried, extract and capsule products. The company operates its 450,000 sq. ft. Niagara Perpetual Harvest Facility.

The industry’s broadest product portfolio is prepared and packaged at the 60,000 sq. ft. manufacturing centre of excellence in Vaughan, Ontario.

CannTrust is developing nanotechnology to develop new products in the medical, recreational, beauty, wellness and pet markets. The Company has established its international footprint through a strategic partnership with Cannatrek Ltd. in Australia and a joint venture with STENOCARE in Denmark.

The Company has also partnered with Breakthru Beverage Group through Kindred Canada, for recreational distribution in Canada. CannTrust is committed to research and innovation. Its partnerships with McMaster University in Ontario and Gold Coast University in Australia were designed to contribute to the growing body of evidence-based research regarding the use and efficacy of cannabis.

It sells dried cannabis and oil extractions to the client based on the medication document provided by health care practitioner. The company has a partnership with Gold Coast University Hospital. CannTrust Holdings Inc. was incorporated in 2015 and is headquartered in Vaughan, Canada.

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As noted above, CNTTF just announced it has obtained the necessary permitting from the Town of Pelham to proceed with its Phase III expansion with the construction process set to commence immediately.

The chart shows 44% added to share values of the listing over the past month of action. Furthermore, the listing has seen a growing influx of trading interest, with the stock’s recent average trading volume running 30% beyond what we have been seeing over the larger time frame.

“We are pleased with the outcome of the discussions with the Town of Pelham,” said Peter Aceto, CEO of CannTrust. “We believe this decision reflects our view that we are a trusted member of the community and that we are intent on listening to our stakeholders. The demand for our medical and recreational products continues to be well in excess of supply and we are keen to move ahead with the Phase III expansion and meet our capacity targets. We also continue to evaluate several strategic alternatives to meet and increase our initial production capacity goals. We are actively pursuing strategic acquisitions of land and facilities, both inside and outside Ontario and hope to update shareholders with these initiatives in due course. Our active patient count continues to increase, and the recreational market is currently undersupplied. We intend to make every effort to serve these markets with our award-winning products.”

Currently trading at a market capitalization of $723.11M, CNTTF has a significant war chest ($86.3M) of cash on the books, which is balanced by about $8.7M in total current liabilities. CNTTF is pulling in trailing 12-month revenues of $36.5M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 105%. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $CNTTF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $CNTTF, either long or short, and we have not been compensated for this article.

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