Emerald Health Ramps Up World Class Cultivation Facility in B.C.
March 7th, 2018
Exclusive, News, Top Story
The Canadian cannabis industry is projected to reach C$22.6 billion over the coming years, according to Deloitte, driven by the legalization of adult-use cannabis on a national level. While most licensed producers are independently scaling their production capacity and maneuvering through the learning curve of growing cannabis in large scale, others have partnered with existing agricultural giants to quickly scale up operations in a way that avoids many of the growing pains that they would otherwise face.
Emerald Health Therapeutics Inc.’s (TSX-V: EMH) (OTCQX: EMHTF) partnership with Village Farms International (TSX: VFF) (OTCQX: VFFIF) is a great example of the latter. With over 30 years of agricultural experience, and existing facilities well-suited to convert into cannabis cultivation facilities, the company was a natural choice for a licensed producer to partner with and become one of the largest licensed producers in the country.
Securing a Cultivation License
Emerald Health and Village Farms recently announced that Health Canada issued a cultivation license for the co-owned Delta 3 greenhouse operation under the Access to Cannabis for Medical Purposes Regulations (ACMPR).
“Our joint venture is well positioned to be a leading supplier in the imminent legal adult-use Canadian cannabis market, with potentially significant benefit to each of our companies and shareholders,” said Emerald Health Executive Chairman Avtar Dhillon, MD, in a recent press release announcing the joint venture’s new cultivation license.
The 1.1 million sq. ft. cannabis growing facility is located in Delta, British Columbia and is conservatively projected to produce 75,000 kilograms of high quality cannabis when it moves into full production. By putting cutting-edge technologies and cultivation practices into place, management aims to become one of the lowest cost producers at less than $1.00 per gram, which could make the joint venture one of the most profitable licensed producers.
The conversion of the first 250,000 sq. ft. of the 1.1 million sq. ft. Delta 3 greenhouse is already substantially completed and is expected to come online in April 2018. The remainder of the 1.1 million sq. ft. facility is expected to enter into full production in 2019.
In addition, the joint venture holds options on two additional greenhouses owned by Village Farms that could expand production capacity to 4.8 million sq. ft. – making it potentially one of the biggest licensed producers in the world.
Innovative Technologies in Place
Emerald Health’s joint venture is converting the Delta 3 greenhouse operation to cannabis production with meticulous attention to detail. Growing agricultural crops on a large scale at competitive prices is extremely challenging for any producer, but Village Farms has tremendous experience growing a wide range of agricultural produce over several decades. The joint venture aims to set a new standard in the Canadian cannabis industry.
“With Emerald’s in-depth cannabis expertise, Village Farms’ know-how based on innumerable crop cycles over 30 years of large-scale greenhouse growing, and working with global agricultural leads and high-tech facilities and systems experts, we configured this greenhouse for continuous weekly harvesting year-round, maximizing operating efficiencies, and flexibility to adapt to an evolving market,” said Dr. Dhillon.
The Delta 3 greenhouse features:
- Automated growing systems to optimize efficiency;
- Industry-leading HVAC systems supported by advanced data technologies;
- High tech light deprivation and supplementation systems;
- State-of-the-art drying, trimming, and packaging areas;
- Proprietary labour tracking systems;
- Secure low-cost electricity from BC’s hydroelectric power plants
Emerald Health Therapeutics Inc. (TSX-V: EMH) (OTCQX: EMHTF) is strongly positioned in Canada’s rapidly growing cannabis industry. Through its Village Farms partnership, the company has gained access to some of the smartest minds in agriculture and is rapidly scaling up its operations to 250,000 sq. ft. and then to 1.1 million sq. ft. by next year. Combined with its other wholly owned Lower Mainland facility, its extensive life sciences expertise, and its focus on product innovation, investors may want to take a look at the stock as it gears up through 2018.
The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please see our disclaimer below and follow the link to view our full disclosure outlining compensation: https://www.cannabisfn.com/legal-disclaimer/
Follow Us on Social Media
About CFN Media
CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.
CFN launched in June of 2013 to initially serve the growing universe of publicly traded marijuana companies across North America. Today, CFN Media is also the digital media choice for the emerging brands in the space.
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/.