VAUGHAN, ON, May 14, 2019 /CNW/ - CannTrust Holdings Inc.
("CannTrust" or the "Company", TSX:TRST, NYSE:CTST) announced today
that the underwriters of its previously-announced underwritten
public offering of 36,363,636 common shares at a price to the
public of US$5.50 per share have
exercised in full their option to purchase 4,636,363 and 818,182
additional common shares, respectively, from the Company and a
certain selling shareholder, at the public offering price, less the
underwriting discount, resulting in total gross proceeds to the
Company of approximately U.S.$25.5
million in connection with the option to purchase and
US$195.5 million in the aggregate
from the offering, before deducting underwriting discounts and
commissions and estimated offering expenses.
The Company intends to use the net proceeds of the offering for
general corporate purposes, including cultivation and facility
expansion, expanded outdoor growing, international expansion,
enhanced extraction capacity, upgrades for GMP Certification and
biosynthesis development.
BofA Merrill Lynch, Citigroup, Credit Suisse Securities
(USA) LLC and RBC Capital Markets
acted as lead book-running managers for the offering. Jefferies LLC
and Canaccord Genuity LLC also acted as book-running managers.
A final prospectus supplement (the "Supplement") was filed to
the Company's short form base shelf prospectus dated March 18, 2019 (the "Base Prospectus") in
connection with the offering with the securities commissions in
each of the provinces of Canada,
except Québec, and with the United States Securities and Exchange
Commission (the "SEC") as part of a registration statement on Form
F-10, as amended, which was declared effective by the SEC on
March 19, 2019, in accordance with
the Multijurisdictional Disclosure System established between
Canada and the United States.
The Supplement and the accompanying Base Prospectus contain
important detailed information about the offering. The Supplement
and the accompanying Base Prospectus can be found for free on SEDAR
at www.sedar.com and on EDGAR at www.sec.gov. Copies of the
Supplement and accompanying Base Prospectus may also be obtained
from BofA Merrill Lynch NC1-004-03-43, 200 North College
Street, 3rd floor, Charlotte,
NC 28255-0001, Attn: Prospectus Department, or via email, at
dg.prospectus_requests@baml.com, Citigroup Global Markets Inc., c/o
Broadridge Financial Solutions, 1155 Long Island Avenue,
Edgewood, NY 11717, or via
telephone: (800) 831-9146, Credit Suisse Securities (USA) LLC, Attention: Prospectus Department,
Eleven Madison Avenue, 3rd Floor, New York, NY 10010; tel:1-800-221-1037, or via
email, at usa.prospectus@credit-suisse.com, or from RBC Capital
Markets 180 Wellington Street West, 8th Floor,
Toronto, ON M5J 0C2, Attn:
Simon Yeung, or via telephone: (416)
842-5349 , or via email at simon.yeung@rbc.com.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any province, state or jurisdiction in which
such offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
province, state or jurisdiction.
About CannTrust
CannTrust is a federally regulated licensed producer of medical
and recreational cannabis in Canada. Founded by pharmacists, CannTrust
brings more than 40 years of pharmaceutical and healthcare
experience to the medical cannabis industry and serves more than
70,000 medical patients with its dried, extract and capsule
products. The Company operates its Niagara Perpetual Harvest
Facility in Pelham, Ontario, and
prepares and packages its product portfolio at its manufacturing
centre of excellence in Vaughan,
Ontario.
Forward Looking Statements
This press release contains "forward-looking information" within
the meaning of Canadian Securities laws and "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and other applicable
United States safe harbor laws,
and such statements are based upon CannTrust's current internal
expectations, estimates, projections, assumptions and beliefs and
views of future events. Forward-looking information and
forward-looking statements can be identified by the use of
forward-looking terminology such as "believes", "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 and statements in this news
release include statements relating to the Company's intended use
of proceeds from the offering. Forward-looking information and
statements necessarily involve known and unknown risks, including,
without limitation statements regarding the use of proceeds from
the offering, risks associated with general economic conditions;
adverse industry events; loss of markets; future legislative and
regulatory developments in Canada,
the United States and elsewhere;
the cannabis industry in Canada generally; and, the
ability of CannTrust to implement its business strategies.
Any forward-looking information and statements speak only as of
the date on which they are made, and, except as required by law,
CannTrust does not undertake any obligation to update or revise any
forward-looking information or statements, 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
information and statements, readers should keep in mind the risk
factors and other cautionary statements in CannTrust's Annual
Information Form dated March 28, 2019 (the "AIF") and
filed with the applicable Canadian securities regulatory
authorities on SEDAR at www.sedar.com and filed as an
exhibit CannTrust's Form 40-F annual report under the United States
Securities Exchange Act of 1934, as amended, with the United States
Securities and Exchange Commission on EDGAR at www.sec.gov. 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 or statements.
The Toronto Stock Exchange and the New York Stock Exchange do
not accept responsibility for the adequacy or accuracy of this
release.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/canntrust-announces-exercise-of-option-to-purchase-additional-shares-in-connection-with-underwritten-public-offering-of-common-shares-300850225.html
SOURCE CannTrust Holdings Inc.