The CEO of the newest cannabis company to list on the NYSE says it's a 'perfect time' to open up to investors as it goes head-to-head with Aurora and Canopy Growth
- Canadian marijuana cultivator made its NYSE debut on Monday.
- Peter Aceto, the company's CEO, told Business Insider it's the 'perfect time' to make the move as CannTrust seeks to compete with some of its heavyweight peers.
Canadian marijuana cultivator CannTrust joined some of its heavyweight peers on Monday by listing on the New York Stock Exchange.
Peter Aceto, the firm's new CEO, told Business Insider that it's the "perfect time" to for CannTrust to list on the storied exchange as it seeks to compete with some of its larger competitors including Canopy Growth and Aurora Cannabis.
Marijuana companies are racing to gobble up market share in what the Bank of Montreal predicts will be a $194 billion industry globally as more jurisdictions legalize the plant for both medical and recreational uses.
"Our strategy is pretty crisp and pretty clear for us right now," said Aceto, outlining what he says are the key components of CannTrust's strategy to get "more than our fair share" of the global cannabis market.
The first part, says Aceto, is to build on CannTrust's expertise in the global medical cannabis space.
The company has pursued a number of joint ventures to build up its capacity there, including taking a 25% equity stake in Stenocare, a Danish medical cannabis producer (which was the first cannabis company to hold an initial public offering in the European Union), a partnership with generic drug manufacturer Apotex, and a joint venture with Cannatrek, an Australian cannabis producer.
"We see them as a stepping stone to the Asian market," said Aceto. Both Thailand and South Korea legalized forms of medicinal cannabis last year, and analysts expect that market to continue to heat up.
The second part, says Aceto, is research and development. CannTrust is studying ways to cheaply and effectively use cannabinoids - the active compounds in the cannabis plant - as functional ingredients in products ranging from ointments and creams to recreational beverages, to veterinary care and over-the-counter drugs.
On that front, CannTrust recently entered a partnership with Grey Wolf, which is pursuing clinical trials researching the effects of cannabinoids on pets.
"We see the pet market being gigantic as well," said Aceto.
Broadly speaking, Aceto said he's most bullish on the medical cannabis market - and that's where CannTrust is placing most of its bets.
"When you think about the next few years, and how cannabis can be used to help people with medical issues, whether it's pain, or seizures and tremors, or appetite loss or people who are going through chemotherapy, there's so much opportunity," said Aceto.
CannTrust is also engaged in a clinical study in Australia, with the hypothesis that cannabis oils can reduce or even slow the onset of ALS symptoms.
"We still have some science to do to prove the efficacy and all of these things, but that science is being done and we're facilitating it," said Aceto.
To Aceto, who left banking to take over as CannTrust's CEO late last year, the most exciting part of his job is building up an industry from scratch.
Sign up here for our weekly newsletter Wall Street Insider, a behind-the-scenes look at the stories dominating banking, business, and big deals.
"It was an absolute no brainer for me to want to be a part of this industry and get the opportunity to be a pioneer again," said Aceto.
CannTrust shares will also trade on the Toronto Stock Exchange, where it was listed previously. Investors who purchased shares in the company over the "pink sheets" or OTC Markets Pink Open Market can now trade their shares on the NYSE, the company said in a statement.
- Read more:
- A marijuana industry veteran is raising a $30 million venture fund to go after biotech investments, and he's hiring
- A New York private equity firm founded by JPMorgan and Guggenheim veterans is raising the largest-ever fund dedicated to the booming marijuana industry
- A marijuana industry veteran is raising a $30 million venture fund to go after biotech investments, and he's hiring
- A $200 million marijuana VC breaks down how he picks what companies to invest in