Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By Midas Letter (Reporter)
Contributor profile | More stories
Story Views
Now:
Last Hour:
Last 24 Hours:
Total:

CannTrust Holdings Inc (TSE:TRST) Prices Securities At Discount

% of readers think this story is Fact. Add your two cents.


CannTrust Holdings Inc (TSE:TRST) (NYSE:CTST) (FRA:C9S) announced pricing of its previously-announced underwritten public offering today. Much to the surprise of investors, it didn’t materialize at 10-Day VWAP (over $7.10/share), rather, at a price that was that was significant below.

CannTrust’s offering of 36,363,636 common shares came at a price of $5.50USD. The company is selling 30,909,091 common shares in the offering for total gross proceeds of approximately US$170 million—with another 5,454,545 common shares offered separately. The underwriters have 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 Company intends to use the net proceeds of the offering for general corporate purposes, 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.

While the pricing of the offering is coming at a steep discount, it’s important to note there are no warrants attached to the offer; common is such transactions. Without these potential “sweetner” convertibles to attract investors, there was less incentive to purchase securities at prices closer to its recent median. This, despite the common tumbling ↓35.85% since March 27th—the day before the company issued Q4 2018 financial results. Currently shares are lower be another ↓10.09%, trading $0.29 above its public offering price.

Whether CannTrust’s sour undertones have affected the market broader today is unclear. Certainly, such low ball pricing—where investors demand a deep discount to participate—isn’t exactly a confidence booster for the sector. The Horizons Marijuana Life Sciences Index ETF is lower by ↓2.86%, with several Tier-1 and mid-major licensed producers taking it on the chin.

Midas Letter will have further coverage as events warrant.

Original article: CannTrust Holdings Inc (TSE:TRST) Prices Securities At Discount

©2019 Midas Letter. All Rights Reserved.



Source: https://midasletter.com/2019/05/canntrust-holdings-inc-tsetrst-prices-securities-at-discount/
Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com

Order by Phone at 888-809-8385 or online at https://www.herbanomic.com


Get our Free Ebook, "Suppressed Health Secrets"  with  Natural Cures THEY don't want you to know!

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Organic Hemp Extract (CBD) - Full Spectrum high CBD (3300mg) hemp extract eases stiff joints, relieves stress and more!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse
Loading...
    Loading...

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.