Emerald Health Assembling Impressive Array of Cannabis Assets


Robin Lefferts

May 8th, 2018

Exclusive, News, Top News


As adult-use legalization of cannabis approaches in Canada, anticipated this summer or perhaps early fall, the industry offers a wide array of companies looking to capitalize on this greatly expanded market. Licensed producers are building out expanded cultivation facilities and investing in retail-oriented brands while trying to establish broad consumer appeal. Companies are anticipating that current trends will hold and consumers will be looking for alternate methods to smoking for the delivery of cannabinoids, opening up high-margin opportunities for retail products. Blockchain technology may provide a method to better manage the complex world of the cannabis supply chain and provide added trust for consumers.

Emerald Health Therapeutics, Inc. (TSXV: EMH) (OTCQX: EMHTF) is a British Columbia-based licensed producer that is checking all of these boxes and then some, building a diversified and vertically-integrated company that is poised to take full advantage of the legalization of cannabis. Long viewed as a science-oriented niche producer, the company is now in a position to be a major player in all aspects of the emergent industry.

Large Scale Production Capacity

Starting off with the most obvious asset, Emerald Health has a whole lot of production capacity either currently in play or coming online soon. The company has substantially completed a retrofit of an existing 250,000 square foot greenhouse in a joint venture with Village Farms International (TSX: VFF), one of North America’s largest agricultural greenhouse operators. The JV, called Pure Sunfarms, is retrofitting an additional 850,000 square feet of existing greenhouse, and the 1.1 million square foot operation is conservatively estimated to have over 75,000 kilograms of cannabis flower production capacity once it is fully built out. Pure Sunfarms received its cultivation license, expects its sales license this summer, and is aiming to reliably produce high quality cannabis at less than $1/gram of production cost. Pure Sunfarms also has an option to convert an additional 3.7 million square feet of existing greenhouses at this Delta, BC location.

Emerald is currently building its own 500,000 square foot hybrid greenhouse facility in the Metro Vancouver area. Its existing Victoria, BC cultivation facility complements all of this large-scale production, and the company is currently licensed to both produce and sell dry and extracted products.

The company recently acquired Agro-Biotech, one of only six currently licensed producers in the province of Quebec. The move adds about 10,000 kilograms of cannabis production capacity at full production, but the most important aspect of this deal may be the geographical diversity it provides Emerald. Quebec is Canada’s second most populous province, with about 8.4 million residents. Agro-Biotech is well positioned to serve Quebec consumers with its local presence and provides a regional hub to distribute product to eastern Canada.

Converting Science to Consumer Products

Apart from selling cannabis flower, Emerald Health is positioned to capitalize on industry trends toward more differentiated and higher margin products based on cannabis derivatives. The company already offers whole plant extracts derived from its own unique variety of cannabis strains, including one of the few THCA oil products on the market. With the company’s broad-based life sciences and R&D expertise, it is very focused on production innovation and the advancement of novel intellectual property with the goal of achieving a product line that leverages opportunities based on unique formulation, delivery, and applications.

Emerald controls 53% of Northern Vine Labs, a licensed dealer in British Columbia. A licensed dealer designation from Health Canada allows the company to provide testing services, import and export cannabis oils, and research and develop cannabis-derived products in ways that licensed producers cannot. This license is helpful for both the development and distribution of cannabis products like beverages, edibles, and personal care products. As the cannabis flower market matures, prices and profit margins are likely to shrink and companies that provide effective higher margin products from derivatives will likely benefit.

A recently-announced deal to market and sell proprietary non-cannabis nutritional products lays the foundation for potential future cannabis-based distribution. In essence, the company intends to distribute endocannabinoid-supporting products through pharmacies, natural health outlets, and grocery stores. On top of providing Emerald a differentiated revenue stream, the deal gives the company potential channels for future distribution of cannabis products should those channels become approved at some point. To be clear, Emerald cannot currently sell cannabis-derived products through these channels. But the roadmap is there should the market mature and regulations change. In the meantime, Emerald is also developing a comprehensive e-commerce platform in conjunction with Namaste Technologies to serve as a retail channel for its customers.

Keeping Track of It All

Cannabis is a highly regulated and high value product that requires meticulous record-keeping in order to ensure compliance. Blockchain technology appears to be well-suited to manage this particular challenge and to offer the many stakeholders in the marketplace, in particular customers, a higher level of trust and confidence in the cannabis products they purchase. Emerald Health is focused on developing a solution to address these opportunities. By tracking each step of the plant’s journey, from seed to sale, with a decentralized, timestamped and unhackable digital ledger, Emerald thinks its platform can transform the industry.

“There are various applications of blockchain technology focused on validating and assuring the source, quality and integrity of products such as diamonds, wine, and art, along with coffee and other food products,” said Avtar Dhillon, MD, Executive Chairman of Emerald Health Therapeutics. “Cannabis is also a prime industry in which to apply blockchain to the supply chain based on the broad spectrum of plant and growing attributes, as well as product innovation potential; the need for licensing as well as high security and confidence; and the possibility to start off such an initiative with relatively small groups of pertinent stakeholders.”

The Upshot

Canada is leading the world in terms of legalizing and regulating the cannabis industry, and the country’s upcoming full legalization of the plant is groundbreaking on many levels. Investors may want to consider Emerald Health Therapeutics as it transforms into a major diversified producer and product innovator.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: https://www.cannabisfn.com/legal-disclaimer/

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Robin Lefferts

Robin Lefferts has been involved in the legal cannabis industry since 2012, sometimes as an active participant and always as an interested observer.


Network Partners

Follow Us on Social Media

About CFN Media Group

CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.

Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.

Copyright © Accelerize Inc. · All Rights Reserved · Privacy Policy · Legal Disclaimer

loading