CannTrust is partnering with one of Australia’s first vertically integrated cannabis companies, from which CannTrust will buy low-cost cannabis, the company announced on October 28.
Licensed producer Cannatrek specializes in: cannabis research; cultivation; manufacturing; and sales and import licenses by federal and state governments.
The company is building a 1.7 million sq. ft. greenhouse, scheduled to be completed and in production by early 2019.
The partnership demonstrates CannTrust’s ability to be a global player in the rapidly expanding Australian cannabis market, said CannTrust CEO Peter Aceto.
“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, both in Canada and globally,” he said.
Cannatrek CEO Tommy Huppert said CannTrust is an ideal partner, owing to its industry knowledge and expertise, pharmaceutical approach and strong team.
CannTrust is investing approximately CAD $6 million for a 20 per cent stake in Cannatrek, with an option to maintain this shareholding through any future share issuances up to and including Cannatrek completing an initial public offering.
CannTrust recently partnered with Australia’s Gold Coast University for a clinical trial on the efficacy of CannTrust CBD oil capsules in slowing disease progression in patients with Amyotrophic Lateral Sclerosis (ALS) and Motor Neuron Disease (MND).