Monday, October 29, 2018
CannTrust Holdings Inc., one of Canada's leading and most trusted licensed producers of cannabis, continues to develop its reach and global footprint and announced today that it has entered into a strategic partnership with Australian licensed producer, Cannatrek Ltd ("Cannatrek").
Cannatrek is one of the first Australian vertically integrated enterprises to be awarded a cannabis research, cultivation, manufacturing, sales and import license by federal and state governments and is pioneering a world class 1.7 million sq. ft. greenhouse facility, which will position Cannatrek to be one of the lowest cost producers in Australia. This greenhouse project, when completed, will provide significant supply for the Asia-Pacific region and will allow CannTrust to purchase quality, low-cost cannabis from Cannatrek.
The current Australian industry is set to rapidly expand, which sets the CannTrust-Cannatrek strategic partnership in an industry leading position to supply both local and export demand. Currently, Cannatrek is completing its first commercial facility, which is scheduled to be in production by early 2019.
"We will continue to invest in strategic alliances with well-positioned business partners to maintain our position as a front-runner in the cannabis industry both in Canada and globally," says Peter Aceto, CEO, CannTrust. "This partnership with Cannatrek demonstrates CannTrust's commitment and ability to be a global player in the rapidly expanding cannabis market. The rapid increase in worldwide demand for cannabis offers significant new opportunities for CannTrust."
"CannTrust's industry knowledge and expertise, together with its pharmaceutical approach and strong team, make it an ideal partner for us. We are excited to build our alliance with a top Canadian licensed producer that is as dedicated to customer care and patient access as we are," says Tommy Huppert, CEO, Cannatrek.
As part of the partnership, CannTrust is making an investment of AUD $6.4 million (approximately CAD $6 million) for a 19.8% stake in Cannatrek, with an option to maintain this shareholding through any future share issuances up to and including Cannatrek completing an initial public offering.
This partnership is just one of many global supply arrangements that CannTrust has in development. CannTrust also recently partnered with Australia's Gold Coast University for a clinical trial on the efficacy of CannTrust CBD oil capsules in slowing the disease progression in patients with Amyotrophic Lateral Sclerosis (ALS) and Motor Neuron Disease (MND).