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CannTrust Holdings (CNTTF)

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Last Post: 1/14/2019 8:09:46 AM - Followers: 42 - Board type: Free - Posts Today: 0



As a federally regulated licensed producer, we bring more than 40 years of pharmacy and healthcare experience to the Medical Cannabis industry and apply this expertise to produce standardized Medical Cannabis for patients in need as we sell 100% pesticide free product.

At CannTrust™ we are committed to research and innovation, as well as contributing to the growing body of evidence-based research regarding the use and efficacy of cannabis. Our product development teams along with our exclusive Pharma partner Apotex are diligently innovating and developing products that will make it easier for patients to use Medical Cannabis today and in the future. We support ongoing patient education about Medical Cannabis, and have launched a compassionate use program to support patients with financial needs.
Our 50,000-square foot state-of-the-art hydroponic facility provides control and results, combined with a patient-centric focus, ensures we are producing quality products and delivering superior service to our customers. To satisfy the demand for our products, we are expanding our production capacity with a 430,000-square foot greenhouse in the heart of the Niagara region. The facility has been designed and engineered to ensure our customers have a continuous supply of quality standardized products. This facility will be the first of its kind in Canada, one of the largest in North America, and the first phase will come on-stream in fall 2017.

Our onsite laboratory with advanced technology and equipment for testing and research on the medical use of cannabis provides CannTrust the ability to develop and rigorously test our products at any point. CannTrust has been granted a Section 9 License by Health Canada under the Narcotic Control Regulations. This allows us to expand our product development and research to include pharmaceuticals in an effort to better serve all Patients and Customers.

Taking Top Pick Target Up - ECHLON

Event: We reiterate our Speculative Buy rating as well as our Top Pick classification, and are raising our 12-month target price from $6.25/shr to $15.00/shr. When we originally launched coverage, we noted that our estimates and target price reflected baseline forecasts that had significant upside potential. We have increased our F2019 revenue/EBITDA estimates to reflect the benefit of the planned Phase 2 expansion, which we view as fully funded following the Company’s recent equity financing (co-led by Echelon Wealth Partners). Since it began publicly trading on August 21st, TRST has been one of the top performing cannabis stocks in our tracking group, with a return of 173% against the group average of 78%. Potential catalysts include improved financial results, additional product development news and the granting of a sales license for the Niagara facility.

Investment Thesis: CannTrust Holdings is a licensed producer (LP) of medical cannabis, operating a hydroponic indoor production facility in Vaughan, Ontario, and a greenhouse facility in Fenwick, Ontario. For additional detail, please refer to our recent initiating coverage report.

???$20M Equity Financing Closed; Doubling of Niagara Capacity Fully Funded– CannTrust recently completed a $20M bought deal private placement (including full exercise of the overallotment) at $5.00/shr. This was originally announced as a $15.0M offering, but was increased given strong demand. The Company has also arranged a $15.0M mortgage on its Niagara Greenhouse facility, and we expect the lender’s credit committee to approve the mortgage shortly. We therefore believe the Phase 2 expansion is fully funded, allowing TRST to double annualized production capacity at the Niagara facility to 40,000kg by mid-2018.

???TRST Reported Strong Q317 Results, and Initial Shipments to Australia – TRST reported revenue/adjusted EBITDA of $6.1M/$1.2M, beating our original forecast of $4.8M/ ($0.8M). The revenue outperformance was driven by sales volumes that beat our estimate by 26%, with both dried cannabis and cannabis oil sales volumes better than expected. As of late last week, TRST had 35,000 active patients. Moreover, the Company recently received Health Canada approval to export medical cannabis; shipments to Australia have begun, and management expects to soon begin shipping to Germany, Denmark and Brazil.

???Capacity Increase Drives Near Doubling of F2019 EBITDA Forecast to $111M – The Phase 2 expansion should double annualized production capacity at the Niagara facility from 20,000kg to 40,000kg, with completion expected in mid-2018 (our model assumes first harvest in late 2018). This is the primary driver behind the increase in our F2019 EBITDA estimate from $57M to $111M. Absent any change in the valuation multiple (10x EV/2019E EBITDA), this would justify a target price of $11.50+. However, as the group average multiple has doubled since we initiated coverage in late August, we are increasing our valuation multiple to 13x EV/2019E EBITDA, and are raising our 12-month target to $15.00/shr from $6.25/shr.

???Our Estimates Leave Significant Upside for Better Utilization and Stronger Yields – Should F2019 production reach full utilization (vs. our 70% forecast), our EBITDA estimate and 12-month target price would improve to $154M and $21/shr, respectively. Should crop yields outperform on top of that, our EBITDA and 12-month target prices could improve to $225M and $30/shr, respectively.


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CNTTF News: Why Companies Are Buying Up Assets in the American Cannabis Market 11/27/2018 08:45:00 AM
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#168   NEWS!! https://www.ftmig.com/resources/aleafia-fulfills-first-transaction-under- Jdoggg 01/14/19 08:09:46 AM
#167   No way they get 29 million in revs.....17-20 Dogger05 01/10/19 08:00:42 PM
#166   CNTTF financials looking amazing! timetravelerdos 01/10/19 11:20:49 AM
#165   We needed a day like today let’s keep 53man 01/09/19 07:37:08 PM
#164   HUGE NEWS!! https://www.ftmig.com/cannabis/canntrust-applies-to-list-on-nyse Jdoggg 01/08/19 08:43:39 AM
#163   CannTrust Applies to List on NYSE: https://www.newcannabisventures.com/canntrust TraderJoe03 01/08/19 08:28:24 AM
#162   Any word on when they are gonna uplist? TraderJoe03 01/01/19 11:45:42 AM
#161   I think next financials will be at the Dogger05 01/01/19 12:21:58 AM
#160   Dogger05 you said it was going to be 53man 12/31/18 08:03:21 PM
#159   Trying to figure out why as well. Haven't MHR20 12/26/18 10:15:18 AM
#158   0 volume? What gives TraderJoe03 12/26/18 10:06:43 AM
#157   About time! 53man 12/24/18 01:26:49 PM
#156   Is this stock dead? How low is this TraderJoe03 12/20/18 11:23:36 AM
#155   Any updates on the up listing to the NYSE? MHR20 12/19/18 11:18:19 AM
#154   NEWS!! https://www.ftmig.com/cannabis/canntrust-provides-business-update/ Jdoggg 12/19/18 08:48:33 AM
#153   Heck yeah, we will see more Canadian companies timetravelerdos 12/14/18 01:14:52 PM
#152   Hemp is coming to the US. All companies Spicknspan 12/14/18 12:38:25 PM
#151   CEO Peter Aceto talks about his first three timetravelerdos 12/12/18 03:25:44 PM
#150   Cmon Cann Trust let's go!!!!! 53man 12/10/18 01:11:45 PM
#149   CannTrust’s Pelham pot tops Canadian Cannabis Awards: Chosen timetravelerdos 12/05/18 10:08:50 AM
#148   Hemp is coming to the US. Finally Spicknspan 12/04/18 06:46:55 PM
#147   NEWS!! The Farm Bill looks like it timetravelerdos 11/28/18 03:35:15 PM
#146   CannTrust: The Only Bright Spot Among Canadian LPs timetravelerdos 11/23/18 04:27:49 PM
#145   I think it is still ok for shmp CEOs 11/21/18 09:37:18 AM
#144   CannTrust in Top 5 Tweet today from timetravelerdos 11/19/18 06:21:52 PM
#143   CannTrust Holdings looks to uplist to NYSE as timetravelerdos 11/17/18 06:04:16 PM
#142   They got to be careful about crossing the Spicknspan 11/16/18 08:55:25 PM
#141   CannTrust makes its case as a major Canadian timetravelerdos 11/16/18 04:42:50 PM
#140   Way to go !.....Nice entry Sir. nowwhat2 11/16/18 03:37:04 PM
#139   Marketwatch article today on CNTF Spicknspan 11/16/18 12:47:30 PM
#138   When HEMP is legalized in the States, CNTTF Spicknspan 11/16/18 12:45:54 PM
#137   This was my first private placement at $2. drivepact 11/16/18 08:19:01 AM
#136   nowwhat....I like some of these marijuana stocks...just trying nrcmedia 11/16/18 01:33:16 AM
#135   All I know is that it looks like nowwhat2 11/15/18 10:46:57 PM
#134   I don't mind this staying under the radar...only bbcars 11/15/18 09:15:09 PM
#133   I hear you Dogger05 I really like trst. 53man 11/15/18 07:53:16 PM
#132   Mine too clemdane.... Dogger05 11/15/18 06:44:21 PM
#131   Well I do own acb, but I think Dogger05 11/15/18 06:41:03 PM
#130   This is my favorite of all my MJ Clemdane 11/15/18 06:40:32 PM
#129   This is a perfect example of how a 53man 11/15/18 04:56:41 PM
#128   Lol your right about the posts. This thing 53man 11/15/18 03:46:37 PM
#127   Yeah financials.....I love owning a stock that’s up Dogger05 11/15/18 03:24:45 PM
#126   Did they have some news I missed? 53man 11/15/18 03:19:44 PM
#125   Wow nice day we are smoking everyone no 53man 11/15/18 03:17:54 PM
#124   Bout time this goes up TraderJoe03 11/15/18 10:07:51 AM
#123   It’s gonna take some patience. The easy money Dogger05 11/14/18 11:51:58 PM
#122   Thanks buddy, I know nobody can foresee the Green_Investor 11/14/18 09:58:25 PM
#121   My largest as well, by a long shot. Dogger05 11/14/18 06:08:01 PM
#120   Great plan...AND...85 million in cash to make it bbcars 11/14/18 06:00:38 PM
#119   I am still here for sure. Yes I’m Dogger05 11/14/18 05:48:21 PM