How CannTrust Is Targeting Asia-Pacific and German Markets



Cannatrek partnership

On October 28, CannTrust Holdings (CNTTF) announced a strategic partnership with Australian cannabis producer, Cannatrek. CannTrust has acquired a 19.8% stake in Cannatrek and low-cost, high-quality cannabis from the producer in exchange for an investment of ~6 million Canadian dollars. In its third-quarter earnings call, CannTrust said it plans to maintain its ownership in Cannatrek in case there are any additional share issuances or an initial public offering for Cannatrek.

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In the call, CannTrust also reported that Cannatrek is constructing a 1.7-million-square-foot cultivation facility. The resulting economies of scale are expected to make Cannatrek a leading cannabis player in the Asia-Pacific region. Cannatrek plans to initiate commercial activities in early 2019. CannTrust expects Australia’s adoption of medical cannabis to be similar to Canada’s, and to benefit from the positive outlook for medical cannabis in other Asian markets.

Gold Coast Hospital and pharmaceutical distribution partnerships

On July 11, CannTrust announced a partnership with Australia’s Gold Coast University Hospital to conduct a randomized trial evaluating the efficacy of CannTrust’s cannabidiol oil capsules in reducing disease progression in patients with amyotrophic lateral sclerosis or motor neuron disease. CannTrust has also entered into an export partnership with one of Germany’s largest pharmaceutical distributors. Next, we’ll discuss CannTrust’s market growth in medical cannabis.


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