Home Cannabis Analyzing CannTrust Holdings' Medical and Wholesale Business

Analyzing CannTrust Holdings’ Medical and Wholesale Business

Medical business

CannTrust Holdings’ (CNTTF) Canadian medical business includes dried cannabis and extracts. In the first nine months of 2018, CannTrust Holdings’ dried cannabis generated revenues of 8.4 million Canadian dollars—compared to 6.3 million Canadian dollars during the same period the previous year, which reflects 33% YoY (year-over-year) growth.

In the first nine months of 2018, CannTrust Holdings’ extracts and other products generated revenues of 16.0 million Canadian dollars and 1.2 million Canadian dollars, respectively—compared to 7.1 million Canadian dollars and 267,766 Canadian dollars during the same period the previous year, which reflects ~125% and ~347% YoY growth.

CNTTF

In the first nine months of 2018, CannTrust Holdings’ net dried cannabis sales grew from 730,670 grams to 1.0 million grams.

CannTrust Holdings has partnered with McMaster University to conduct research on using medicinal cannabis for chronic pain.

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CannTrust Holdings’ sales growth could boost the Horizons Marijuana Life Sciences Index ETF’s (HMLSF) share price. CannTrust Holdings accounts for ~2.69% of HMLSF’s total portfolio holding.

Wholesale business

CannTrust Holdings’ wholesale supply includes dried cannabis, extracts, and other products. In the first nine months of 2018, CannTrust Holdings’ dried cannabis, extracts, and other products generated revenues of 2.6 million Canadian dollars, 375,857 Canadian dollars, and 856,270 Canadian dollars, respectively.

In the third quarter, CannTrust Holdings generated revenues of 1.4 million Canadian dollars, 301,825 Canadian dollars, and 856,270 Canadian dollars from selling dried cannabis, extracts, and other products, respectively.

In the third quarter, CannTrust Holding entered into a supply agreement with nine Canadian provinces to supply recreational cannabis. The supply agreement could boost CannTrust Holdings’ revenue growth in 2019.

CannTrust Holdings also launched its fourth recreational cannabis brand, Peak Leaf, which could increase the company’s sales growth in 2019.

CannTrust Holdings expanded its global footprint by entering into an agreement with Cannatrek—a licensed cannabis producer in Australia. CannTrust Holdings and Cannatrek plan to construct a 1.7 million square foot greenhouse facility.

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