CannTrust Holdings (TSX:TRST) (NYSE:CTST) started Monday off poorly—according to The Street, shares dropped more than 6%—but the company appears to be in the midst of a turnaround.
Here’s what we know.
CannTrust Holdings: TRST and CTST Stock Today
On Monday, April 22, CannTrust Holdings provided a business update. In the update, the company said it forecasts revenue will come in at $17 million vs $7.8 million for the quarter ended March 2018. According to CEO Peter Aceto, “These preliminary results represent the excellent efforts the CannTrust team has made.”
The report also provided operational highlights, such as making several capital investments to increase its extraction capability and keeping product pricing stable.
Despite Aceto’s optimism, CTST stock and TRST stock entered the red today. In early trading, CTST stock fell 6.6% on the New York Stock Exchange. However, both CannTrust Holdings’ stocks have managed to turn around as the trading day went on.
At the time of writing, CTST stock is trading at $7.26, which puts it up 2.14%. On the TSX, TRST stock is trading at $9.64, putting it up 2.34%, as of 1:42 PM.
More TRST News
CannTrust Holdings also announced Monday that it has filed “a preliminary prospectus for a secondary offering of $200 million common stock,” according to The Street.
For the secondary offering, Citigroup, BofA Merrill Lynch, RBC Capital Markets, and Credit Suisse Securities (USA) LLC will act as lead book-running managers. There will be two additional book-running managers as well, with Jefferies LLC and Canaccord Genuity LLC securing the roles.
Shares may have dropped in early trading, but TRST and CTST stock have managed to turnaround. And CannTrust Holdings expects good things to come, saying “we expect gross margins between 42% to 46% in the first quarter of 2019, and plan to deliver continued improved profitability as our volumes increase.”
What do you think, though? Let us know in the comments below.
Featured image: Canva