• Daily Marijuana Observer Facebook
  • Daily Marijuana Observer Twitter
  • Daily Marijuana Observer StockTwits
  • Daily Marijuana Observer SA
  • Daily Marijuana Observer Instagram
  • Daily Marijuana Observer Youtube
  • Pinterest Social Icon
  • Daily Marijuana Observer Talk Market

7 Things Investors are Paying Attention to From CannTrust's Q2'17 Earnings

August 28, 2017

(Image Credit - Nick Youngson)

 

Earlier today, CannTrust Holdings Inc. (CSE:TRST)(OTC:CNTTF)(FRA:C9S) announced the company's earnings for the three and six months ended June 30, 2017. Despite having been initially licensed on June 12, 2014, making them one of the older Canadian licensed producers, CannTrust just started trading on the Canadian Securities Exchange last week. Here are seven things that investors are paying attention to from the company's first earnings release as a publicly traded company...

 

Related: 10+ Things to Know About the CSE's Upcoming Cannabis Listing

 

  1. Revenues rose more than 469% from the comparable quarter of last year to $4,541,378 CAD. This increase in revenue was attributable to higher sales volumes primarily due to the growth in the company's patient base from 3,800 at June 30, 2016 to more than 20,000 as of June 30, 2017. In the three months ended June 30, 2017, CannTrust sold 227,800 grams of dried marijuana for $8.58 CAD in net revenue per gram. The company also sold 1,113,840 ml of cannabis oils in the three months ended June 30, 2017 for $2.05 CAD per gram in average net selling price. 

  2. The gross profit for the three months ended June 30, 2017 was $3,999,530, compared to $222,828 in the comparable period of 2016. This increase in gross profit can be attributed to increased revenues and a higher unrealized gain on changes in fair value of biological assets. 

  3. Expenses increased roughly 109% from $1,168,153 CAD in Q2'16, to $2,451,681 CAD in the second quarter of 2017. This increase in expenses can be attributed to increased general and administrative expenses, selling and shipping costs, professional fees and salaries and benefits as the company responded to increased demand by adding staff. 

  4. Net income in Q2'17 was $754,864 CAD, up from a loss of $1,565,661 CAD in the comparable period of last year. CannTrust generated $0.01 CAD in earnings per share for the quarter ended June 30, 2017. 

  5. The company has $14,902,482 CAD in cash as of June 30, 2017. 

  6. In the second quarter, the company began phase 1 development of their 430,000 square foot Niagara greenhouse that they plan on bringing online in the fall of 2017, assuming Health Canada approval. Including the second phase that they expect to complete in 2018, management estimates that this facility should provide the company with up to 40,000 additional kilograms of growing capacity annually. 

  7. CannTrust is also working on diversifying its business model by developing new and innovative cannabis products. In furtherance of this, the company has an exclusive joint venture with Apotex, a leading Canadian manufacturer of generics, to develop novel cannabinoid dosage formats and products. The company also founded Cannabis Coffee & Tea Pod Company with Club Coffee L.P. to launch a pod formulation for the administration of cannabis using single-serve brewing pods in Keurig and Nespresso like brewers. Cannabis Coffee & Tea Pod Company has been granted a U.S. patent for the pod formulation and unit dosing. Additionally, through the Cannabis Coffee & Tea Pod Company, CannTrust will receive royalty income from a licensing agreement currently covering six states: Washington, Oregon, California, Nevada, Arizona and Colorado.

 

Market Reaction

 

In late trading on the day of the release, shares of CannTrust are rising more than 5% on the CSE. The company's OTC Markets symbol is up more than 13% on higher than average volume. Including today's gains, shares of CannTrust are down roughly 2% from their opening price of $2.50 CAD on August 21st, the company's first day of trading.

 

Conclusion

 

Be sure to subscribe to our Canadian L.P. newsletter, so you never miss an important update from one of Canada's 56 LPs. Also, don't forget to connect with The Daily Marijuana Observer on FacebookTwitterStockTwits, and Instagram.

 

D/M/O

 

Disclaimer

 

Investing in nanocap, microcap, and small cap stocks is highly speculative. The publishers of DailyMarijuanaObserver.com are not registered as Investment Advisors or Broker-Dealers in any jurisdiction whatsoever. The information contained on DailyMarijuanaObserver.com (“this site”) has been prepared solely for informational purposes. Nothing on the site is an offer or solicitation to buy or sell securities. Investors should seek financial advice regarding the appropriateness of investing in any securities mentioned from their financial advisor.

Please reload

LATEST NEWS
Please reload

Please reload

DMO

© Copyright 2016-2020 Smoke Show Ventures, Inc.

RSS Feed

Disclaimer: Except for the historical information and data presented herein, matters discussed in articles on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future performance or achievements expressed or implied by such coverage. Smoke Show Ventures, Inc., which owns The Daily Marijuana Observer, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Smoke Show Ventures, Inc., which owns The Daily Marijuana Observer, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. Before making specific investment decisions, readers should seek their own professional advice and that of their own professional financial adviser. Smoke Show Ventures, Inc. or its affiliates, which owns The Daily Marijuana Observer, may be compensated for its services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.dailymarijuanaobserver.com/legal-disclaimer/.