CannTrust Holdings (TSX: TRST) (NYSE: CTST) has released an update on its outdoor cultivation operation in British Columbia and its first shipment of capsule and dry flower products to Australia.
After closing the purchase of its first 81 acres of land in British Columbia for outdoor cannabis cultivation, CannTrust invested in fencing, security, irrigation and other land preparation activities and applied for Health Canada approval to plant and cultivate on the land.
Based on its estimate of yields and projected date of permitting at the time, the company estimated 75,000kg of cannabis could be produced from the property in 2019. As the company has yet to receive its Health Canada permit at this stage of the growing season, it is now estimated that production from the operation could range from 0 to 15,000kg in 2019, subject to the timing and receipt of regulatory approvals.
A crop of up to 15,000kg is expected if planting is completed in the first half of July 2019 and yields will diminish if a crop is planted in the second half of the month. If a crop is not planted by August 5, there will be no outdoor harvest in 2019.
CannTrust expects to reach a definitive agreement for a long-term lease for an additional 160 acres in the near term and that all properties, representing over 240 acres of land, will be prepared for planting at the beginning of the growing season in 2020.
Between these two properties, the company continues to expect that it can produce between 100,000kg to 200,000kg of cannabis in British Columbia in 2020, subject to regulatory approvals.
“We have access to premium land in a very rich agricultural region and we remain undeterred in our long-term strategy to develop innovative cannabis products at low cost,” CEO Peter Aceto stated.
Shipment to Australia
In addition, CannTrust recently completed its first shipment of CBD, THC and 1:1 CBD:THC vegan capsules and dry flower products to Australia.
The products will be resold by its partner Cannatrek Ltd. to medical patients in Australia. The shipments are expected to continue until Cannatrek’s operations achieve commercial production. CannTrust now has nine products available to medical patients in Australia.
“The first steps to build CannTrust’s global footprint were established last year through partnerships in Europe and Australia. We continue to make excellent progress with our partners in these regions as they build their operations and through our regular shipments of our award-winning products to both Denmark and Australia. We will continue taking action to establish leading positions in medical cannabis markets around the world. CannTrust is in an excellent position to increase our international business as medical and recreational cannabis continue to gain acceptance worldwide,” Aceto stated.