VAUGHAN, ON, July 3, 2019 /CNW/ - Today, CannTrust Holdings
Inc. ("CannTrust" or the "Company", TSX: TRST, NYSE: CTST)
announced an update on its outdoor cultivation operation in
British Columbia and its first
shipment of capsule and dry flower products to Australia.
Outdoor Cultivation Update
After closing the purchase of its first 81 acres of land in
British Columbia for outdoor
cannabis cultivation, CannTrust immediately invested in fencing,
security, irrigation and other land preparation activities and
applied for Health Canada approval to plant and cultivate on the
land. Based on its estimate of yields and projected date of
permitting at the time, CannTrust estimated 75,000kg of cannabis
could be produced from this property in 2019. As CannTrust has yet
to receive its Health Canada permit at this stage of the growing
season, it is now estimated that production from this operation
could range from 0 to 15,000kg in 2019, subject to the timing and
receipt of regulatory approvals. A crop of up to 15,000kg is
expected if planting is completed in the first half of July 2019 and yields will diminish if a crop is
planted in the second half of the month. If a crop is not planted
by August 5, 2019, there will be no
outdoor harvest in 2019.
CannTrust expects to reach a definitive agreement for a
long-term lease for an additional 160 acres in the near term and
that all properties, representing over 240 acres of land, will be
prepared for planting at the beginning of the growing season in
2020. Between these two properties, CannTrust continues to expect
that it can produce between 100,000kg to 200,000kg of cannabis in
British Columbia in 2020, subject
to regulatory approvals.
"We have access to premium land in a very rich agricultural
region and we remain undeterred in our long-term strategy to
develop innovative cannabis products at low cost," said
Peter Aceto, Chief Executive
Officer.
First Shipment to Australia
Last week, CannTrust completed its first shipment of CBD, THC
and 1:1 CBD:THC vegan capsules and dry flower products to
Australia. These products will be
resold by its partner Cannatrek Ltd. ("Cannatrek") to medical
patients in Australia. These
shipments are expected to continue until Cannatrek's operations
achieve commercial production. CannTrust now has nine products
available to medical patients in Australia.
"The first steps to build CannTrust's global footprint were
established last year through partnerships in Europe and Australia. We continue to
make excellent progress with our partners in these regions as they
build their operations and through our regular shipments of our
award-winning products to both Denmark and Australia. We will continue taking action to
establish leading positions in medical cannabis markets around the
world. CannTrust is in an excellent position to increase our
international business as medical and recreational cannabis
continue to gain acceptance worldwide," said Peter Aceto.
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
72,000 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. The Company has also purchased 81 acres of land in
British Columbia and expects to
secure over 240 acres of land in total for low-cost outdoor
cultivation which it will use for its extraction-based
products.
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 plans to obtain
regulatory approval for outdoor cultivation and estimates on yield
for the 2019 growing season, and the shipment of capsule and dry
flower products to Cannatrek in Australia. Forward-looking information and
statements necessarily involve known and unknown risks, including,
without limitation: obtaining regulatory approval; 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 TSX and NYSE do not accept responsibility for the adequacy or
accuracy of this release.
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SOURCE CannTrust Holdings Inc.