At fourth-quarter 2019 earnings conference, we expect investors to focus on CannTrust Holdings Inc.’s updates related to its default status reports and the completion of its remediation activities in various facilities.
On Feb 25, 2019, the company started trading on the New York Stock Exchange (NYSE) under the ticker symbol CTST.
Last month, CannTrust received a written notification from the NYSE, which stated that the company is no longer in compliance with the NYSE’s continued listing standard rules as the per share trading price of the company’s common stock fell below the NYSE’s share price rule.
However, CannTrust will have six months’ time to regain compliance from the date of this notice issued. During this period, the company’s shares will continue to be listed and trade on the NYSE as usual.
Shares of CannTrust have plunged 92.6% in the past year compared with the industry’s decrease of 15.2%.
Last month, the company appointed Greg Guyatt as its new CEO.
Let’s see, how things are shaping up for this announcement.
Key Factors to Note
CannTrust is a federally-regulated licensed producer of medical and recreational cannabis in Canada. The company’s revenues are generated from the sale of cannabis products, both in the medical and the recreational markets.
However, the company currently has no meaningful revenue base and remains default of its disclosure obligations under securities legislation. The company laid off a significant portion of its workforce and is facing several regulatory investigations. It also has significant contingent liabilities in both Canada and the United States.
We believe, investors will be keen to know the updates on the above events during the upcoming conference call.
Last month, the company announced that it will file documents to Health Canada regarding the completion of its remediation activities at its Niagara Facility.
Meanwhile, CannTrust expects remediation activities at the Vaughan Facility to be completed by the second quarter of 2020. Notably, in October 2019, CannTrust submitted a detailed remediation plan to Health Canada for the reinstatement of the facility’s licenses.
However, management stated that there can be no assurance that Health Canada will reinstate either the Niagara or Vaughan Facility licenses. We expect a detailed update on the same at the upcoming earnings presser.
Notably, CannTrust has not announced any financial results since reporting its first-quarter 2019 earnings performance.
CannTrust currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CannTrust Holdings Inc. Price and EPS Surprise
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