VAUGHAN, Ontario, November 14, 2018
VAUGHAN, Ontario, November 14, 2018 /PRNewswire/ --
CannTrust Holdings Inc. ("CannTrust" or the "Company" | TSX: TRST), a licensed producer of medical and recreational cannabis under the Cannabis Act and its regulations, today announced financial and operating results for the three and nine months ending September 30, 2018. All amounts expressed are in Canadian dollars.
Revenue for the three and nine month periods ended September 30, 2018 was $12,588,727 and $29,478,813 respectively, compared to $6,140,224 and $13,714,847 in the comparable 2017 periods. Net Income for the three and nine month periods ended September 30, 2018 was $421,240 and $11,968,255 respectively, compared to a net income of $655,309 and $632,269 in the comparable 2017 periods. Earnings per share for the three and nine month periods ended September 30, 2018 was $Nil and $0.12 respectively, compared to earnings per share of $0.01 and $0.01 in the comparable 2017 periods.
2018 Third Quarter Highlights
Developments subsequent to the Quarter
2018 Third Quarter Financial Summary
Three Months ended Nine Months ended September 30 September 30 CAD$ (except grams sold) 2018 2017 2018 2017 Canadian Medical Dried Cannabis $3,484,406 $ 2,341,838 $ 8,441,338 $ 6,336,292 Extracts 6,220,483 3,673,859 15,987,840 7,110,789 Other 321,176 124,527 1,197,846 267,766 Wholesale Dried Cannabis 1,404,567 - 2,619,662 - Extracts 301,825 - 375,857 - Other 856,270 - 856,270 - Total Revenue 12,588,727 6,140,224 29,478,813 13,714,847 Gross Profit 12,540,631 5,356,806 44,775,622 12,944,494 Adjusted EBITDA[(1)] 557,983 1,936,232 1,171,455 3,527,395 Net Income and Comprehensive Income 421,240 655,309 11,968,255 632,269 Earnings per share - basic 0.00 0.01 0.12 0.01 Earnings per share - diluted 0.00 0.01 0.12 0.01 Canadian Medical Dried Cannabis sold (grams) 397,925 281,005 1,013,725 730,670 Average revenue per gram 8.77 8.10 8.37 8.38 Total dried Cannabis equivalent sold from extracts (grams) 699,389 386,230 1,864,132 744,880 Average revenue per gram of Cannabis equivalent from extract sales 8.89 9.27 8.57 9.42 Wholesale[(2)] Dried Cannabis sold (grams) 266,616 - 530,956 - Average revenue per gram 6.40 - 6.26 - Total average net selling price per gram 8.37 9.02 8.05 9.11
(1) Non-IFRS Measures
(2) Wholesale revenue includes goods and services sold to international markets, the Canadian recreational market and to third party Licensed Producers.
A comprehensive discussion of CannTrust's financial condition and results of operations are provided in the Company's Management Discussion & Analysis and Condensed Interim Consolidated Financial Statements filed with SEDAR and can be found on http://www.sedar.com.
"We are extremely pleased with our Q3 results that are a testament to the success of this Company and the incredible progress that we have made in such a short period of time. With the opening of the recreational market and the numerous opportunities that our Company is positioned to capitalize on, this is only the beginning," said Eric Paul, Chairman of the Board. "The appointment of Peter Aceto as CEO, a globally recognized and seasoned professional, will be the perfect compliment to our leadership team and will lead our Company into the next phase of our rapid growth."
"Our Q3 results attest to the great work Eric and the Company have done and I look forward to building on this platform. The legalization of the adult consumer recreational market is only the beginning of many new and exciting opportunities for the Company. We look forward to boldly executing on our vision for CannTrust both at home and abroad," said Peter Aceto, CannTrust's newly appointed CEO.
The Company is taking steps to list its common shares on the New York Stock Exchange ("NYSE"). Any such listing remains subject to the approval of the NYSE and the satisfaction of all applicable listing and regulatory requirements.
Peter Aceto added, "CannTrust has firmly established itself as one of the top licensed producers in Canada with a global platform rooted in science and innovation. A U.S. listing is a natural step forward in our evolution as we look to broaden our investor base and expand our business on an international scale."
CannTrust - a front-runner in the cannabis industry, a federally regulated licensed producer and proudly a Canadian company - is leading the Canadian and global market in producing standardized cannabis products. Started as Canada's only pharmacist-founded medical cannabis producer, CannTrust brings more than 40 years of pharmacy and healthcare experience to the medical cannabis industry. CannTrust currently operates its 450,000 sq. ft. Niagara Perpetual Harvest Facility. The 600,000 sq. ft. greenhouse expansion has begun and is fully funded. 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 ready for Cannabis 2.0, and is currently developing new products for future verticals that span the medical, recreational, beauty, wellness and pet markets. CannTrust is committed to research and innovation, as well as contributing to the growing body of evidence-based research regarding the use and efficacy of cannabis. Its product development teams along with its exclusive global pharma partner, Apotex Inc., are diligently innovating and developing products that will make it easier for patients to use medical cannabis. CannTrust supports ongoing patient education about medical cannabis and has a compassionate use program to support patients with financial needs.
Forward Looking Statements
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation which are based upon CannTrust's current internal expectations, estimates, projections, assumptions and beliefs and views of future events. Forward-looking information can be identified by the use of forward-looking terminology such as "expect", "likely", "may", "will", "should", "intend", "anticipate", "potential", "proposed", "estimate" and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions "may", "would" or "will" happen, or by discussions of strategy.
The forward-looking information in this news release is based upon the expectations, estimates, projections, assumptions and views of future events which management believes to be reasonable in the circumstances. Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of fact. Forward-looking statements in this news release include, but are not limited to, statements with respect to internal expectations, expectations with respect to actual production volumes, expectations for future growing capacity, expectations for future legalization in Canada of edible cannabis products, the completion of any capital project or expansions and the Company's desire and intention to list its common shares on the NYSE. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; loss of markets; future legislative and regulatory developments; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the cannabis industry in Canada generally; the ability of CannTrust to implement its business strategies; competition; crop failure; and other risks.
Any forward-looking information speaks only as of the date on which it is made, and, except as required by law, CannTrust does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for CannTrust to predict all such factors. When considering these forward-looking statements, readers should keep in mind the risk factors and other cautionary statements in CannTrust's Annual Information Form dated March 29, 2018 (the "AIF") and filed with the applicable Canadian securities regulatory authorities on SEDAR at http://www.sedar.com. The risk factors and other factors noted in the AIF could cause actual events or results to differ materially from those described in any forward-looking information.
The TSX does not accept responsibility for the adequacy or accuracy of this release.
Copyright © 2017 CannTrust Holdings Inc.