Shares of CannTrust Holdings (CNTTQ 7.69%) climbed 6.5% on Tuesday, following the release of the marijuana producer's first-quarter results.
CannTrust Holdings' net revenue surged 115% year over year to $16.85 million Canadian ($12.5 million), driven by a 57% rise in its medical net revenue and a ninefold increase in its wholesale revenue.
CannTrust Holdings' total active patient count rose 70% to 68,000 people. The Canadian marijuana producer sold more than 3,000 kilograms of dried cannabis equivalent -- a nearly 200% year-over-year increase -- at an average net price of $5.47 per gram during the first quarter.
In turn, CannTrust delivered a surprise profit of CA$12.8 million ($9.5 million), or CA$0.12 per share. Analysts had been expecting a loss of CA$0.05 per share.
CannTrust's harvested production increased by 96% from the fourth quarter of 2018 and more than 400% year over year, to over 9,400 kilograms. The company said it expects to boost production capacity to 50,000 kilograms annually by the third quarter of 2019.
CEO Peter Aceto said CannTrust's recent stock offering would allow it to further increase capacity in the years ahead. "With the successful closing of our equity offering providing gross proceeds of US$170 million ... we are well positioned to execute on our growth plans," Aceto said.