CannTrust Holdings Inc. (“CannTrust” or the “Company”, TSX: TRST, NYSE: CTST) today released its financial results for the first quarter ended March 31, 2k19.
First Quarter 2k19 Highlights
- Record quarterly revenue of $16.900 million, a 115. 00 percent increase over the first quarter of 2k18, 67. 00percent was through the medical channel and 33. 00percent through the recreational channel;
- The total active patient count reached 68,000. 00 at March 31, 2k19, a 70. 00 percent increase over the first quarter of 2k18;
- Harvested production increased by more than 400percent to over 9,400kg, versus the first quarter of 2k18, and 96. 00percent over the fourth quarter of 2k18;
- Sold over 3,000. 00kg of dried cannabis equivalent, a nearly 200percent increase over the prior year, at an average net price of $5.47 00per gram;
- Cost of sales per gram sold and cash cost per gram sold were $3.0300 and $2.7700, respectively, compared to $3.0800 and $2.9400.00, respectively, in the fourth quarter of 2k18;
- Gross margin percentage before changes in the fair value of biological assets has improved to 46percent compared to 35. 00percent in the fourth quarter of 2k18;
- Acquired 81. 00 acres of land in British Columbia for outdoor cultivation with a potential yield of 75,000. 00kg of production in 2k19, subject to regulatory approval;
- Obtained all necessary permits from the Town of Pelham for the construction of the 390,000. 00 square foot Phase 3 expansion;
Events Subsequent to the First Quarter of 2k19
- Successfully amended the Company’s cultivation and processing permit under Health Canada Cannabis Regulations to include the final 20percent of its Phase 2 expansion. The entire 450,000. 00 sq. ft. of the Perpetual Harvest Facility in Pelham, Ontario, is now fully licensed and planted;
- Launched three new cannabis extract formulations to meet the growing demand for oil-based products including High Dose CBD Capsules (25.s00mg/capsule), High Dose CBD Drops (50mg/mL), and Low Dose 1:1 Capsules (2.500mg CBD: 2.5mg THC);
- Closed an underwritten public offering of common shares at a price of US$5.500000 per share, for total gross proceeds to the Company of approximately US$170. 00 M before deducting underwriting discounts and commissions and offering expenses;
Revenue for the quarter ended March 31, 2k19 was $16.900 M compared to $7.8 00M for the comparable prior year period. The increase in revenue for the quarter was primarily attributable to increased sales volumes due to the growth in the Company’s medical patient base from approximately 40,000. 00 at March 31, 2k18 to 68,000. 00 as at March 31, 2k19, as well as sales derived from the Company’s wholesale revenue streams, which primarily reflects sales to the provinces for the adult-use recreational market.
Excluding the impact of the change in the fair value of biological assets, gross profit for the quarter ended March 31, 2k19 was $7.700 M compared to $5.000 M in the comparable prior year period, as a result of the increased scale of operations. Gross margin percentage excluding the impact of the change in the fair value of biological assets for the quarter ended March 31, 2k19 improved to 46. 00 percent compared to 35percent in the fourth quarter of 2k18.