CannTrust Raises US $170 Million via public share sale

Canada’s CannTrust Holdings Inc. has announced the pricing 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.

The company is selling 30,909,091 common shares in the offering for total gross proceeds of approximately US$170 million, before deducting underwriting discounts and commissions and estimated offering expenses. Certain shareholders are selling 5,454,545 common shares in the offering.

In connection with the offering, the company and the selling shareholders have granted to the underwriters a 30-day option to purchase up to an additional 4,636,363 and 818,182 common shares, respectively, at the public offering price, less the underwriting discount.

The offering is expected to close on or about May 6, 2019, subject to the satisfaction of customary closing conditions, including the listing of the common shares on the Toronto Stock Exchange and New York Stock Exchange and any required approvals of each exchange.

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 are acting as lead book-running managers for the offering. Jefferies LLC and Canaccord Genuity LLC are also acting as book-running managers.

CannTrust is a federally regulated licensed producer of medical and recreational cannabis in Canada. Founded by pharmacists, CannTrust serves more than 69,000 medical patients with its dried, extract and capsule products.Cannabis Business Worldwide