VAUGHAN, Ont. — Shares of CannTrust Holdings Inc. slipped as much as 16 per cent after it reported a fourth-quarter revenue bump on the legalization of recreational cannabis but missed expectations and swung to a net loss.
The Vaughan, Ont.-based licensed producer reported record net revenues of $16.2 million during the three-month period ended Dec. 31, up 132 per cent from a year earlier.
CannTrust posted a fourth-quarter net loss of $25.5 million or 26 cents per share, compared to a $6.3 million profit or eight cents per share during the same quarter in 2017.
Analysts had expected revenues of $21.2 million, and a net loss of $6.4 million amounting to a four cent loss per share, according to Thomson Reuters Eikon.
CannTrust said its operating expenses during the quarter due, in part, to higher marketing costs to launch its recreational brands, personnel hires and costs related to its listing on the New York Stock Exchange.
The company’s stock in Toronto was trading at $11.28 in morning trading, down more than 16 per cent than its previous close of $13.45.
Companies in this story: (TSX: TRST)
The Canadian Press