Emerald Health Therapeutics Inc (OTCMKTS:EMHTF) has reported revenues of $20.3 million in Q4 2019. It is an increase of 340% when compared to the same period last year. However, its gross margins declined to $14.5 million in 2019 because of startup production costs and fixed price cannabis purchase obligations.
Scales up commercial production
CEO and President of Emerald, Riaz Bandali said the company has focused on ramping up commercial manufacturing at its two wholly-owned cultivation facilities and reduce the costs during H2 2019, and in early 2020. The company is moving towards realizing profitability and positive cash flow.
Four distinct assets
Emerald’s four distinct assets comprise product development leveraging science, post-harvest processing, cultivation, and unique IP. It is striving to create an innovative experience for consumers using unique wellness, recreational, and medical cannabis and non-cannabis products.
Highlights in 2019
Emerald has lowered the SG&A costs significantly by giving pink slips to 60 employees during H2 2019 and in early 2020. It has terminated supply accords and the associated obligations by restructuring relationships and commitments with its JV – Pure Sunfarms and its JV partner – Village Farms. Post restructuring, Emerald retains three board seats and a stake of 41.3% in Pure Sunfarms.
Emerald has commenced the full production of 88,000 Sq. Ft. Quebec based Verdelite indoor facility. It has also brought on 78,000 Sq. Ft. Metro Vancouver based Organic Greenhouse into full-scale production and sold the first product from this facility in March.
Emerald has expanded the distribution of oil and dried cannabis forms to ten territories and provinces. It has added flavored products to the SYNC product portfolio. The company has also rolled out a fast-acting spray that uses a nanoemulsion formulation.
Emerald has recruited Riaz Bandali as the Chief Executive Officer and President in 2019. The previous Director (Finance) is appointed as Corporate Secretary and Chief Finance Officer. Its Chairman and President – Dr. Avtar Dhillon will continue to work as Executive Chairman.
Signs an LOI
Emerald has signed an LOI in March 2020. As per the terms of the LOI, full service and GMP compliant testing laboratory for hemp, cannabis, and derived products – Sigma Analytical Services Inc. expects to takeover Avalite cannabis analytical testing operation of Emerald.