CannTrust Holdings (TSX: TRST) (NYSE: CTST) has launched an underwritten public offering of $200 million common shares.

Approximately 85% of the common shares will be sold in the offering by the company and approximately 15% of the common shares will be sold by certain shareholders, the company states.

In connection with the offering, CannTrust and the selling shareholders expect to grant to the underwriters a 30-day option to purchase up to an additional 15% of the number of common shares sold in the offering.

The offering is expected to be priced in the context of the market, with the final terms of the offering to be determined at the time of pricing, according to the company.

There can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering, CannTrust notes.

The closing of the offering will be subject to market conditions, as well as a number of customary closing conditions, including the listing of the common shares on the Toronto Stock Exchange and New York Stock Exchange and any required approvals of each exchange.

The company intends to use the net proceeds for general corporate purposes, including cultivation and facility expansion, expanded outdoor growing, international expansion, enhanced extraction capacity, upgrades for GMP Certification and biosynthesis development.

The company has not yet determined to pursue any particular research and development initiative requiring the use of a portion of the proceeds of the offering and says will evaluate research and development initiatives as they present themselves, including the terms, capital requirements or timing of any such initiatives.

BofA Merrill Lynch, Citigroup, Credit Suisse Securities (USA) and RBC Capital Markets are acting as lead book-running managers for the offering. Jefferies and Canaccord Genuity are serving as book-running managers.