CannTrust Announces Pricing of Public Offering of Common Shares
VAUGHAN, Ontario, May 2, 2019 /PRNewswire/ -- CannTrust Holdings Inc. ("CannTrust" or the "Company") (TSX: TRST) (NYSE: CTST) announced today the pricing of its previously-announced underwritten public offering of 36,363,636 common shares at a price to the public of US$5.50 per share. The Company is selling 30,909,091 common shares in the offering for total gross proceeds to the Company of approximately US$170 million before deducting underwriting discounts and commissions and estimated offering expenses, and certain shareholders (the "Selling Shareholders") are selling 5,454,545 common shares in the offering. In connection with the offering, the Company and the Selling Shareholders have granted to the underwriters a 30-day option to purchase up to an additional 4,636,363 and 818,182 common shares, respectively, at the public offering price, less the underwriting discount.
The offering is expected to close on or about May 6, 2019, subject to the satisfaction of customary closing conditions, including the listing of the common shares on the Toronto Stock Exchange (the "TSX") and New York Stock Exchange (the "NYSE") and any required approvals of each exchange.
The Company intends to use the net proceeds of the offering for general corporate purposes, including cultivation and facility expansion, expanded outdoor growing, international expansion, enhanced extraction capacity, upgrades for GMP Certification and biosynthesis development.
BofA Merrill Lynch, Citigroup, Credit Suisse Securities (USA) LLC and RBC Capital Markets are acting as lead book-running managers for the offering. Jefferies LLC and Canaccord Genuity LLC are also acting as book-running managers.
A preliminary prospectus supplement has been filed to the Company's short form base shelf prospectus dated March 18, 2019 (the "Base Prospectus") in connection with the offering and a final prospectus supplement relating to the offering (the "Supplement") will be filed with the securities commissions in each of the provinces of Canada, except Québec, and with the United States Securities and Exchange Commission (the "SEC") as part of a registration statement on Form F-10, as amended, which was declared effective by the SEC on March 19, 2019, in accordance with the Multijurisdictional Disclosure System established between Canada and the United States.