Sales for dried cannabis reached just over C$3.5 million for the three-month period, which ended on June 30, compared to a little under C$2 million for the same time period last year. Total revenues for the Canadian licensed producer were C$9 million for the second quarter.
During the quarter, CannTrust’s net selling price per gram lowered from last year to C$8.36.
Eric Paul, CEO of CannTrust, said the company was pleased with its results for the second quarter and is well positioned as a developer of cannabis products for the medical market.
The company revealed its earnings took a hit from C$1.5 million in costs for the ramp up of its Niagara Perpetual Harvest Facility, where expansion construction started in June.
According to the report, the company held a C$11.7-million position in cash as of June 30.
The president of the company, Brad Rogers, added that the operation of the company’s Perpetual Harvest Facility shows the ability for CannTrust to produce high-quality yields and reduced costs.
“Operating a facility of this scale, CannTrust is well-positioned to meet the increased Canadian and global demand for cannabis,” Rogers said.
The 450,000-square-foot hydroponic facility is expected to produce 50,000 kilograms of cannabis per year, before the completion of the 600,000-square-foot expansion. CannTrust estimates the final facility will produce over 100,000 kilograms of cannabis per year.
As part of its quarterly developments, the company highlighted that of the entirety of its cannabis sales, 60 percent represented extracts. The patient count for CannTrust also grew to over 45,000 active consumers of its products.
The company holds a “strong buy” rating on the analyst data aggregator site TipRanks, thanks to the reviews from three cannabis analysts.
The most recent report on CannTrust, from Derek Dlay with Canaccord Genuity, gives the company a C$11 share price target. The aggregate price target from TipRanks is C$15.50.
Following an early dip for the stock, shares for CannTrust rose 3.33 percent. The company’s closing price on Tuesday was C$6.83.
The increase for CannTrust represents strong support for its results, as Tuesday’s trading session brought declines across the board in the cannabis space due to Ontario’s decision to delay retail sales of cannabis until April 1, 2019.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.