Austin Smith
Posted by Austin Smith on Feb 21, 2019 9:55:00 AM

CannTrust Holdings Trading on NYSE on February 25th - Should You Invest?

 

NYSECannTrust Holdings Inc. (OTC: TRST) announced this week that it has met all requirements to uplist onto an exchange within the United States. The company satisfied the regulatory agencies necessary and will list onto the New York Stock Exchange (NYSE) on Monday, the 25th of February.

The company’s stock ticker symbol on the Toronto Stock Exchange will remain “TRST” while the ticker symbol for the stock on the NYSE will be “CTST”.

Peter Aceto, Chief Executive Officer of CannTrust Holdings, said, "We are continuously looking to deliver shareholder value and the NYSE listing is a natural progression for CannTrust. We have taken steps to strengthen our management team to accelerate our growth as we face high demand for our products and expertise, both domestically and internationally. Specifically, we have recently hired Greg Guyatt as Chief Financial Officer, who has demonstrated experience in international capital markets. We expect the NYSE listing will result in an expanded institutional and retail shareholder base, increased capital markets exposure and firmly establish CannTrust as a global company.”

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About CannTrust

CannTrust is one of the few North American cannabis companies reporting a profit, and roughly 8th in revenue generation, CannTrust is building a global cannabis cultivation company. They currently sell medical cannabis in Canada and are ramping up for the adult use market. They, also, ship cannabis to Australia and have a joint venture with Stenocare of Denmark with a large cultivation facility slated. This venture aligns with their plan to increase their global presence.

Their current capacity exceed 100,000 kgs/year - putting it among the top 5 largest producers in North America.

Why do we recommend investing in CannTrust?

While CannTrust’s valuation, using its enterprise value to sales ratio of 18, is not as high as some competitors in the current industry, it is still high for any other industry and is expected to settle down significantly in the coming few years as the Canadian and global market starts to mature. To do this, either revenue must grow without share price moving up or share price must move down. Using the tobacco industry as a comparison, which has an industry average price to sales ratio of 5, we gather that these shares are priced for revenue roughly 3.5 higher, about $107 million. Learn more about why we recommend investing in CannTrust here.

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Tags: Finance, Stock Talk

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