Categories
Marijuana

CannTrust Holdings Inc (NYSE:CTST) Releases Update On Its Default Status

CannTrust Holdings Inc (NYSE:CTST) released a status update on Thursday in line with the requirement for a Management Cease Trade Orders (“NP 12-203”) as per the National Policy 12-203.

The MCTO makes it compulsory for the firm to release updates twice every week until it is up to date with its filing obligations requirements of the Canadian securities laws. The Ontario Securities Commission issued the MCTO which also prohibits CannTrust’s executive officers and directors from acquiring the company’s securities or trading them.

This prohibition will remain active and will only be lifted two business days after CannTrust files an interim financial report for the quarterly and half-year period ended June 30, 2019. The company’s investors who are not insiders will not be affected by the MCTO. CannTrust has also expressed its commitment to comply with the NP 12-203 guidelines.

Will the company get delisted from the New York Stock Exchange?

CannTrust might be at risk of delisting by the New York Stock Exchange due to its illegal growing activities. The Canadian firm targeted the U.S due to the huge market potential at a time when cannabis was gaining legal status. There were a lot of positive expectations about the company but things have been going downhill ever since it announced that it had been illegally growing cannabis in 5 unlicensed rooms for five months.

The confession came after a review by Health Canada, a Canadian regulatory authority. The company had been conducting the illegal growth at the unlicensed rooms from October 2018 to March 2019. It was awarded a license for the rooms in April this year but the impact of the illegal growth started haunting the company. Health Canada placed 5,000 kilos of the company’s product on hold, and so it could not sell its products while investigations were being conducted.

The situation led to distrust especially by investors and CannTrust stock has been on the decline. The NYSE requires firms to maintain a $1 minimum share price to avoid delisting. CannTrust’s stock closed Friday’s trading session at $1.20 and if it goes below the $1 mark, then it might end up being delisted.

Categories
Marijuana

CannTrust Holdings Inc (NYSE:CTST) Announces The Approval Of Its Management Cease Trade Order By The Ontario Securities Commission

CannTrust Holdings Inc (NYSE:CTST) announced while providing its interim update that it applied and successfully received an approval for its Management Cease Trade Order (MCTO) from the Ontario Securities Commission (OSC).

The MCTO issued by the OSC will prevent any of the company’s officers, directors, and other insiders from trading CannTrust shares. These are individuals that may have access to sensitive material that the company has not yet disclosed to the general public. The company however made it clear that the MCTO will not affect investors who are not insiders, meaning that they will still be able to trade the company’s stock.

“This action maintains liquidity for Canadian investors, who can continue to trade the company’s securities at this time,” stated OSC’s public affairs manager, Kristen Rose.

CannTrust revealed earlier this month that it would make an MCTO filing with the OSC due to its high likelihood of missing the August 14, 2019 filing deadline. The missed deadline means that the firm would not manage to file its interim financial report on time for Q1 and Q2 2019, as well as the overall performance for the first half of 2019.

Howe CannTrust will handle the filings moving forward

The filing and announcement of the Q2 2019 financials now rests on the decisions to be made by Health Canada regarding CannTrust’s failure to comply with regulations. However, a special committee has been created to guide the cannabis firm through a remediation plan and submission to Health Canada.

The MCTO will remain in effect, thereby barring executive officers and directors from trading CannTrust’s stock until two days after the company makes all the required filings as required by Ontario securities laws. This includes the filing of its Q2 2019 financials. The MCTO is also a formal action but the company had already gotten its executives and directors to voluntarily agree to the no trading request.

CannTrust also intends to comply with the alternative information guidelines as per the NP 12-203 provision by filing status reports twice every week. The bi-weekly filings will be presented as news releases that will offer updates until the company files its Q2 financials.

Categories
Marijuana

CannTrust Holdings Inc (NYSE:CTST) Releases Update On Brokerage Talks With Kindred Partners Inc

CannTrust Holdings Inc (NYSE:CTST) announced on Monday that it has reached a middle ground with Kindred Partners Inc. as part of their ongoing talks.

The company revealed that they reached an agreement through which CannTrust will scrap off the exclusivity provision that is part of its brokerage accord with Kindred Partners Inc. This slight change in the brokerage arrangement is courtesy of the talks between the two firms which have been going on for months. The change will make it possible for CannTrust to lower the costs that it accrues as part of the brokerage deal.

CannTrust sacks its CEO over unlicensed cannabis growing scandal

On some more recent developments, CannTrust relieved Peter Aceto of his position as its Chief Executive Officer due to a brewing scandal in the firm. The company has reportedly been growing cannabis in a hidden greenhouse without a license.

Health Canada is already conducting a deeper investigation into the matter. The Canadian regulator discovered that it had been given false information by CannTrust employees as part of efforts to conceal the illegal undertakings.

The cannabis company’s board of directors has already replaced Aceto with Robert Marcovitch who will act as CannTrust’s interim CEO.  The cannabis producer also forced Eric Paul to step down from his position as the company’s chairman after the scandal emerged. The firm also released a statement on Thursday, assuring Health Canada of its commitment towards getting to the bottom of the illegal undertakings.

“Our first priority is to complete the remaining items of our investigation and bring the Company’s operations into full regulatory compliance,” stated Marcovitch.

Health Canada confiscated roughly 5,200 kilograms of cannabis that grown illegally. The scandal will likely cause temporary shortages, and so some of the company’s customers, as well as patients who benefit from its products will likely be affected. However, CannTrust is already working on alternative solutions to boost its inventory.

The news about the scandal that rocked CannTrust this week also negatively affected its stock performance. The stock tanked by roughly 22 percent following the announcement, which means that the stock has now gone down by about 50% on a year-to-date basis.

Categories
Marijuana

CannTrust Holdings Inc. (NYSE:CTST) Exploits Rising Demand For Oil-Based Cannabis Products By Launching New Formulations

As the cannabis market continues to entrench itself, the consumers are beginning to develop new tastes. One of the preference that is gaining popularity is for oil-based cannabis products and

CannTrust Holdings Inc. (NYSE:CTST) is already taking steps to tap into the market.

The company launched high dosage CBD products

In a recent news release, the company revealed the launch of new extract formulations. The three formulations exploit the increasing need by medical cannabis patients for products with high cannabis concentration. As per the company, there is an unmet need in the medical cannabis oil niche as demand expands.

The new formulations include CBD capsules which contain a very high dose of the substance yet. Notably, each capsule contains 25mg of CBD. The other product is CBD drops which also contain a high dose of CBD. A single milligram of the CBD drops contains 50mg of CBD. However, the third product formulation contains low CBD where one capsule carries 2.5mg of CBD and 2.5mg of THC on a ratio of one to one.

According to the company statement, the products are already on the shelves and users can order them from the company website. Further, the addition of the three product formulation takes the total count of CannTrust’s products to nine.

Revenue growth is not enough to counter the slow start this year

So far, the company is doing well in terms of sales. During Q4 FY2018, the company sold 3,707 liters of medical cannabis oil to its customers. Notably, the sale amount makes up 27% of the medical cannabis market share in Canada, according to data from Health Canada. As per the company’s CEO, Mr. Peter Aceto, the launch of the new products is a testimony of their strategy of prioritizing of the market.

While the company is experiencing revenue growth, CannTrust is experiencing a slow start in 2019. As per the Q4 FY2018 earnings results, the firm made sales worth $16.2 million where recreational sales made up $10 million and medical sales took the remaining $6 million share. However, increased inefficiencies and ramp-up expenses saw gross margin falling from 69% in Q3 FY2018 to 35% in Q4.

Categories
Marijuana

CannTrust Holdings Inc (NYSE:CTST) Targets Growing Customers For Oil-based Cannabis Products in Canada with 3 New Offerings

CannTrust Holdings Inc (NYSE:CTST) has unveiled three new oil-based cannabis products to satisfy the burgeoning demand in the Canadian market. The three new offerings drive the company’s portfolio of medical cannabis products to nine. Through a press release on April 1o, the company announced that the products development was informed by findings from an intensive market research together with recommendations from the company’s rich network of patients and healthcare practitioners.

The New Offerings

Among the newly unveiled products is the High Dose CBD Capsules (25mg/capsule) which is currently the highest dose of CBD-based capsule in the Canadian market. The capsule is intended for patients that require high concentrations of CBD to neutralize acute symptoms of chronic conditions like pain.

The other doses include the High Dose CBD Capsules (25mg/capsule) and the High Dose CBD Drops (50mg/ml). The last two products are meant for patients that need low concentration of CBD. However, the Low Dose 1:1 Capsules is specifically formulated for patients looking to experiment with CBD products in small controlled doses.

Rapidly Expanding Market

A report by the Health Canada Licensed Producers Market Data indicate that the market share for medical cannabis oil products spiraled 29% between January and September 2018. In light of this encouraging statistics, CannTrust has since invested in production equipment to aid in the cannabis oil extraction. The company looks to triple its annual production capacity to serve the growing market.

CannTrust is among the leading suppliers of medical cannabis oil and capsules. The company sold about 3,707 liters of the product in the Q4 2018 alone accounting to 27% of Canada’s market. The company is constantly augmenting its product line- coming up with new products like in the case of the three both medical and for adult consumers.

“As a company that has prioritized the medical market since our inception, creating products and formulations to meet the needs of patients and healthcare practitioners in Canada and globally has always been, and will always remain, our primary focus.” Peter Aceto, CannTrust CEO.

Pin It on Pinterest