249
Emerald Health Botanicals (EMH) has been a licensed producer since 2014, but it wasn’t until this year that the company
began taking strides towards becoming a major global cannabis player.
The first steps taken were on June 6, 2017, when the company announced a strategic joint venture with Village Farms International (VFF), one of the largest vertically integrated greenhouse growers in North America. The JV, Pure Sunfarms, has the option to convert up to 4.8 million sq. ft. of greenhouse in Delta, BC, into cultivation of cannabis, which would yield greater than 300,000kg and make it the largest producer in the world. As per the terms of the deal, EMH will contribute the capital required to convert the greenhouses to Health Canada requirements, as well as lend their portfolio of cannabis genetics and standard operating procedures. VFF will provide its technologically advanced greenhouses, 750 years of combined growing experience for high quality, low cost production, and each party will own 50% of Pure Sunfarms. This deal is significant for EMH due to the increased speed to market when compared to competitors, and the fact that it is leveraging the large scale commercial expertise of VFF. EMH plans to use the yields from Pure Sunfarms for downstream product development such as extraction-based products.
Emerald Health Sciences is a life sciences company focused on the development of cannabis in pharmaceutical, botanical and bioceutical applications. Incorporated in 2013,
the company is privately held and operates across North America and Europe. The company owns 45.6 million shares of
EMH, representing 49% of all outstanding shares. Investors may find this particularly attractive because it shows that the lead investor of the company has their incentives aligned with common stock holders.
On October, 26, 2017, EMH announced that it had entered into an agreement to acquire 53% of Northern Vine Canada Inc., a Licensed Dealer under the provisions of the Canadian Controlled Drug Substances Act, in exchange for $2.5 million. This is another incredibly savvy move on behalf of EMH because it provides them access to the benefits of a Dealer’s License, without all of the costs associated with going through the licensing process. The acquisition allows EMH to not only import/export dried cannabis and oils, but also to conduct R&D on different formulations of cannabis that have not yet been approved by Health Canada.
Emerald has made it a priority to diversify its operations across the province of British Colombia. Its first and oldest facility is being used as a pilot facility to optimize standard operating procedures, growing practices, grow the company’s genetic library, and prepare for large scale extraction. On November 28, 2016, the company announced that it had entered into an agreement to lease 32 acres of land in Metro Vancouver, BC. Since then, they have been constructing a 100,000 sq. ft. indoor
Emerald Health Therapeutics Inc
TSXV:EMH
As At 11/25/2017
Shares Outstanding: 93,491,891
Share Price: $2.78 Market Cap: $259,907,457