Home > Boards > US Listed > Cannabis >

CannTrust Holdings Inc. (CTST)

Add CTST Price Alert      Hide Sticky   Hide Intro
Moderator: TREND1
Search This Board: 
Last Post: 3/22/2019 11:03:23 PM - Followers: 50 - 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.


Current Price
Bid Ask Day's Range
  • 1D
  • 1M
  • 2M
  • 3M
  • 6M
  • 1Y
  • 2Y
  • 3Y
  • 5Y
CTST News: CannTrust Announces Filing of Final Base Shelf Prospectus 03/18/2019 04:42:00 PM
CTST News: CannTrust Announces Filing of Final Base Shelf Prospectus 03/18/2019 04:42:00 PM
CTST News: CannTrust to Report Fourth Quarter 2018 Results 03/14/2019 07:15:00 AM
CTST News: CannTrust to Report Fourth Quarter 2018 Results 03/14/2019 07:15:00 AM
CTST News: CannTrust to Report Fourth Quarter 2018 Results 03/14/2019 07:15:00 AM
PlusOneCoin Top Posts
No plusone'd posts yet. Be the first!
#338  Sticky Note CTST TREND1 03/22/19 11:03:23 PM
#338   CTST TREND1 03/22/19 11:03:23 PM
#337   CTST on all radar screens soon. ohmer 03/21/19 10:17:37 PM
#336   I can’t believe how little interest this stock Rock_nj 03/21/19 05:00:58 PM
#335   Very excited for the good news! timetravelerdos 03/20/19 10:35:35 PM
#334   One week till CannTrust earnings are reported. Rock_nj 03/20/19 05:48:38 PM
#333   Yes, that’s how I see it playing out. Rock_nj 03/20/19 05:47:42 PM
#332   When the other states see regulation changes made Itchy palm 03/19/19 01:55:47 PM
#331   CannTrust is a great investment and profitable company. timetravelerdos 03/19/19 12:26:06 PM
#330   Thanks! More states will loosen MJ laws. Rock_nj 03/19/19 12:17:47 PM
#329   Medical was already legal in Florida, you just Johnk59 03/19/19 06:13:52 AM
#328   Awesome news! Clemdane 03/19/19 01:37:39 AM
#327   Anybody see this? Likely explanation for the Rock_nj 03/18/19 10:40:01 PM
#326   That would be cool to be able to Clemdane 03/18/19 04:52:44 PM
#325   Looking good here picked up a few more Itchy palm 03/18/19 04:17:34 PM
#324   I like it! 53man 03/18/19 02:46:48 PM
#323   CannTrust his having a good day. Word Rock_nj 03/18/19 10:54:40 AM
#322   CTST CHART TREND1 03/16/19 06:15:29 PM
#321   CONFERENCE CALL DETAILS TREND1 03/16/19 06:06:36 PM
#320   About CannTrust TREND1 03/16/19 06:02:54 PM
#319   CTST may be a good buy. IMHO. TREND1 03/16/19 06:00:57 PM
#318   Insider % Owned = 10.90 % TREND1 03/16/19 06:00:06 PM
#317   EPS = .09 TREND1 03/16/19 05:58:04 PM
#316   CTST CHART TREND1 03/16/19 05:56:39 PM
#315   Link for signing up to the CannTrust 4th timetravelerdos 03/15/19 10:40:01 AM
#314   #CannTrust will hold a conference call on March timetravelerdos 03/14/19 07:37:15 PM
#313   Exactly Rock. 100% Correct!! timetravelerdos 03/14/19 07:32:46 PM
#312   Buying a profitable company makes more sense than Rock_nj 03/14/19 12:38:34 PM
#311   False. A profitable acquisition target does not guarantee bikeridah 03/14/19 08:52:19 AM
#310   Nelson Peltz took a strategic role at Aurora Rock_nj 03/13/19 11:00:48 PM
#309   They have the best management ....its time for JA2626 03/13/19 04:12:20 PM
#308   Nice price action in CannTrust past two days Rock_nj 03/12/19 10:09:02 AM
#307   Sounds good. Thanks for the find regarding their listing! timetravelerdos 03/11/19 02:13:55 PM
#306   I’m expecting a bigger rally later this week Rock_nj 03/11/19 01:17:14 PM
#305   Up .32 so that’s good news ! timetravelerdos 03/11/19 10:41:03 AM
#304   TORONTO , March 8, 2019 /CNW/ - As Rock_nj 03/11/19 12:26:52 AM
#303   CHART Spicknspan 03/07/19 12:28:41 PM
#302   Gltu guys : ) hope ctst does great MADDSTACKER 03/05/19 12:46:53 PM
#301   CTST is very profitable. They know what to timetravelerdos 03/05/19 11:53:02 AM
#300   Hey, sorry. We are both in CTST, so mx10001 03/05/19 08:39:35 AM
#299   It could be a good thing if they Rock_nj 03/04/19 10:38:39 PM
#298   Missed the first posts on the 700 mil. 33Sailor 03/04/19 05:42:12 PM
#297   MADDSTACKER 03/04/19 04:32:36 PM
#296   MADDSTACKER 03/04/19 04:31:50 PM
#295   alright computer tough guy … anytime you in MADDSTACKER 03/04/19 04:30:31 PM
#294   go ctst lmao MADDSTACKER 03/04/19 04:26:10 PM
#293   With the exception of Canopy and Cronos most 33Sailor 03/04/19 04:14:00 PM
#291   Obviously CannTrust wants to raise money in order damAcon1 03/04/19 01:14:59 PM
#290   Yeah this is definitely not a bad thing. pennies_talk_too 03/04/19 01:12:34 PM
#289   "Board", not bored. Better not to write anything mx10001 03/04/19 12:37:02 PM
#288   So my position so thank God I got MADDSTACKER 03/04/19 12:28:06 PM