On May 2, CannTrust (CTST) experienced a significant fall in the first half of the trading session. The stock fell nearly 12% to $5.7. The reason for the fall in CannTrust’s share price stemmed from its latest public offering of ~$170 million, which was priced at $5.5 per share—a 16.8% discount to its previous day’s closing price.
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CannTrust sinks year-to-date
CannTrust experienced solid momentum and reached a peak of $9.8 after the steep sell-off in December 2018, when the stock hit a low of $4.7. However, the company’s earnings miss played a dampener to the rally, and the stock tumbled in the days after it reported its earnings. The fall was further amplified by the weakness in the cannabis sector, and the latest discounted offering made things even worse for the stock.
YTD (year-to-date), the company was trading ~15% higher than its peers. HEXO (HEXO) had more than doubled YTD as of May 2.