CannTrust Holdings Inc. (TSX: TRST) announced on October 28th that the company has agreed to a strategic partnership with the Australian producer of cannabis, Cannatrek Ltd (Cannatrek). The company has continued its goal to expand globally with a $4.5 million investment for a 19.8% stake in Cannatrek. Canntrust also has the option to continue its shareholder position with any future issuances of stock up to Cannatrek’s initial public offering (IPO).
Cannatrek is one of the first Australian vertically integrated enterprises to get awarded a license that allows for the import, cultivation, manufacturing, sales, and research on cannabis by both federal and state governments. The company also runs a 1.7 million sq. ft. greenhouse that is on track to position Cannatrek as one of the lowest cost per gram of dried flower producers in Australia. Canntrust will utilize and benefit from this greenhouse facility by being able to purchase from Canntrek a high-quality, low-cost cannabis.
The company’s Chief Executive Officer, Peter Aceto, said, “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 in both Canada and globally”. The CannTrust CEO also stated that the current goal of Canntrust is to continue to demonstrate the company’s commitment and ability to become a global contender in the continually expanding cannabis markets.