Company News

BUZZ-Medical marijuana co CannTrust slumps on $200 mln stock deal

** U.S.-listed shares of CannTrust Holdings Inc down ~14% premarket after co prices its follow-on

** CTST on course for 6th straight session of losses. ~5.4 mln shares have traded before the bell vs 30-DMA volume of ~2 mln shares

** Canadian medical marijuana producer prices 36.4 mln shares at $5.50, a 15% discount to stock’s Weds close, for total raise of $200 mln

** CannTrust sold 30.9 mln shares, existing holders the balance

** Co to use gross proceeds of $170 mln for cultivation and facility expansion, expanded outdoor growing, international expansion, among other uses

** BofA-ML, Citigroup, Credit Suisse and RBC lead bookrunners for offering, joined by Jefferies and Canaccord Genuity

** CTST shares have fallen 36% since co on Mar 28 posted wider-than-expected Q4 loss, citing higher operating expenses due to marketing to support launch of four recreational brands, and costs in preparation for its recent NYSE listing

** Even with recent slide, U.S.-listed shares up 33% YTD, while Toronto-listed shares up 32%