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CannTrust Holdings Inc. (CTST)

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Last Post: 5/17/2019 5:47:26 PM - Followers: 58 - 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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CTST News: Report of Foreign Issuer (6-k) 05/22/2019 06:05:00 AM
CTST News: Dr. Len Walt Joins CannTrust executive team as Chief Medical Officer 05/16/2019 03:07:00 PM
CTST News: Dr. Len Walt Joins CannTrust executive team as Chief Medical Officer 05/16/2019 03:07:00 PM
CTST News: Report of Foreign Issuer (6-k) 05/15/2019 02:17:24 PM
CTST News: Report of Foreign Issuer (6-k) 05/14/2019 05:22:36 PM
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#487   Bought more...hard to ignore this company. vdb_123 05/17/19 05:47:26 PM
#486   Lowest cost producer.Someone will buy this.Great time to accumulate. vdb_123 05/16/19 09:13:37 PM
#484   All this promotional junk like the stock is PSully 05/15/19 10:02:51 AM
#483   What??? That’s only 58 cents off yesterday close Dogger05 05/15/19 08:10:04 AM
#482   5.50? Yikes...thats too far off from the closing casenumber 05/14/19 11:12:58 PM
#481   "Exercise of Option to Purchase Additional Shares in Bed Bath & Beyonce 05/14/19 06:19:06 PM
#480   CTST Record Q1 Revenue + Buy/Sell Signal, Chart RTupp23 05/14/19 01:42:52 PM
#479   CTST reported record quarterly revenue of $16.9 million, st0ckdiva 05/14/19 10:04:41 AM
#478   Fantastic News!!!! Patient count rose 70% timetravelerdos 05/14/19 08:47:51 AM
#477   CannTrust's Stock Surges After Surprise Profit MHR20 05/14/19 08:38:17 AM
#476   Got it. Good points. In the past CTST timetravelerdos 05/10/19 05:45:47 PM
#475   As u can see by my post in DoubleJackie 05/10/19 03:13:33 PM
#474   You are right I did and at the DoubleJackie 05/10/19 03:06:47 PM
#473   just last week you stated about CTST "This timetravelerdos 05/10/19 02:21:42 PM
#472   This company is doomed for the foreseeable future. DoubleJackie 05/09/19 10:04:19 AM
#471   Health Canada Drops Bombshell Cannabis Announcement RTupp23 05/08/19 11:41:57 PM
#470   #CantTrust Clemdane 05/08/19 06:23:17 PM
#469   Selling shares at $5.50, then the price lingers PSully 05/08/19 05:24:53 PM
#468   #CannTrust will release its financial results for the timetravelerdos 05/07/19 08:09:07 PM
#467   Why Canntrust Tanked Johnk59 05/03/19 06:24:15 AM
#466   Was the best deal they could make likely. All in on Weed 05/02/19 10:06:58 PM
#465   You Only Load Once: What’s in the New RTupp23 05/02/19 09:10:33 PM
#464   I’m not saying I saw anything bad when Itchy palm 05/02/19 05:41:40 PM
#463   Glad I sold out in the 9 dollar Itchy palm 05/02/19 04:51:44 PM
#462   This does seem a tad shady. I’ve DapperDan 05/02/19 03:43:38 PM
#461   Cutting my losses. Will never support them again. Clemdane 05/02/19 02:57:23 PM
#460   Agree with you 100%. This is a steal DoubleJackie 05/02/19 02:51:29 PM
#459   CANT* TRUST DGStocks 05/02/19 02:20:56 PM
#458   Scumbags - I’m out surfgreen 05/02/19 02:08:48 PM
#457   "What the ever-livin' F is this?" is what Clemdane 05/02/19 12:44:02 PM
#456   This is a good opportunity to buy. Doubled mx10001 05/02/19 09:36:44 AM
#455   This is like sitting next to another passenger PSully 05/02/19 09:28:09 AM
#454   Iam hoping to hop back in around third Z1Lightning 05/01/19 10:54:23 PM
#453   At least not anywhere positive, may be back Johnk59 05/01/19 12:24:19 PM
#452   Starting to think this thing is going nowhere. Johnk59 05/01/19 12:23:12 PM
#451   Nice! Clemdane 04/24/19 12:55:13 PM
#450   https://www.marketwatch.com/story/cannabis-stocks-take-a-breather-as-jefferies-r TraderJoe03 04/24/19 07:31:29 AM
#449   CannTrust Provides Q1 Revenue Guidance + BUY/SELL Signal RTupp23 04/22/19 09:19:25 PM
#448   CannTrust Provides Q1 Revenue Guidance + BUY/SELL Signal RTupp23 04/22/19 09:19:24 PM
#447   https://finance.yahoo.com/news/3-pot-stocks-cronos-group-103600017.html TraderJoe03 04/17/19 12:56:09 PM
#446   https://finance.yahoo.com/news/3-pot-stocks-cronos-group-103600017.html TraderJoe03 04/17/19 12:53:52 PM
#445   https://finance.yahoo.com/news/3-pot-stocks-cronos-group-103600017.html TraderJoe03 04/17/19 12:52:40 PM
#444   Let me be clear. I do not own JohnCM 04/15/19 07:42:35 PM
#443   Ask me again why I sold out 25% Dogger05 04/15/19 10:39:48 AM
#442   $CTST Gets Fourth PLACE on the new Cannabis_Rankings Brodmann 04/15/19 09:10:03 AM
#441   Wonder how low this is going.. Got shortly Johnk59 04/11/19 12:25:36 PM
#440   CannTrust Launches Three New Medical Cannabis Extract Formulations RTupp23 04/10/19 01:41:50 PM
#439   #CannTrust is pleased to announce that the entire timetravelerdos 04/08/19 09:24:54 PM
#438   Buying.. Want to accumulate as much as possible vdb_123 04/08/19 07:04:40 PM
#437   CannTrust Receives Green Light From Health Canada for RTupp23 04/08/19 02:18:02 PM