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Emerald Health Therapeutics Inc (OTCMKTS:EMHTF) Posts An Increase Of 340% In Q4 2019 Revenues

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.

Appoints CEO

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.

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Marijuana

Emerald Health Therapeutics Inc (OTCMKTS:EMHTF) Announces First Shipment Of Chemdog From Its Richmond Facility: Expects To Receive Orders From Manitoba And Alberta

Emerald Health Therapeutics Inc (OTCMKTS:EMHTF) has announced the first shipment of Chemdog, a unique cannabis strain, from its Richmond facility. The customers can purchase this product from the online site of BC Liquor Distribution Board and certain cannabis retail stores in BC. Emerald expects to receive orders from Saskatchewan, Alberta, and Manitoba and will ship soon.

Sativa dominant hybrid strain

Sativa dominant hybrid strain – Chemdog comprises 0-1% of CBD and 19-25% of THC. It is the first of the five unique strains cultivated and harvested by Emerald at its 100% Richmond facility based in British Colombia. The cultivar – Chemdog comprises Sour Diesel and OG Kush.

Richmond growing operation

Richmond growing operation is constructed in such a way that it receives abundant sunlight. It is situated close to the transportation and key distribution centers. Richmond facility comprises two 78,000 Sq. Ft. greenhouses. The first licensed greenhouse is fully operational. It is provided with the latest growing systems and lighting to provide flexibility and great control. The first facility helps to optimize the yield and reduces the impact on the environment. Emerald will process the harvested cannabis with the help of trimming, curing, and drying techniques. It provides an authentic cannabis experience to the users. Richmond’s second greenhouse is 90% completed and expects to be operational by the end of this year.

Fully organic cannabis

An accredited Canadian Food Inspection Agency – Pro-Cert Organic Systems has certified the operation of Emerald. Richmond facility grows cannabis naturally in organic soil and uses approved fertilizers and organic pest management tools. It will manufacture fully organic cannabis for users.

Richmond facility of Emerald is preparing to introduce various products with a focus on Western Canada. The company’s second wholly-owned St. Eustache, QC based premium indoor grow operation – Verdelite will cater to the needs of customers in eastern Canada.

Chief Executive Officer and President of Emerald, Riaz Bandali said the skilled operations and organic growers’ team at its Richmond facility is capable of growing appreciated and most challenging strains of cannabis and provide to the customers according to their needs. The first harvests of chemdog, as well as other strains, are meeting the expectations of valued customers. They are delivering adult-use and medical use cannabis products to the customers.

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Marijuana

Health Canada Grants Approval For Pure Sunfarms, A JV Of Emerald Health Therapeutics Inc (OTCMKTS:EMHTF), 65,000 Sq. Ft. Processing Center

Health Canada has approved 65,000 state-of-the-art processing center of Pure Sunfarms, a JV of Emerald Health Therapeutics Inc (OTCMKTS:EMHTF). Pure Sunfarms can achieve cost efficiencies in the production by optimizing the throughput and operations. The JV can also improve the quality of products and enhance product offerings.

High-quality products at reduced rates

Chief Executive Officer and President of Pure Sunfarms, Mandesh Dosanjh said the approvals from Health Canada for this additional space helps the company to improve operations and ensure quality in processing to deliver high-quality products to the customers at reduced rates. Pure Sunfarms will benefit from the improved space in the coming quarter. It expects to post better performance in the coming quarter.

Thirty-three dedicated rooms

Pure Sunfarms will include thirty-three dedicated rooms for packaging, extraction, drying, production, testing, storage, and staging in a total of 65,000 Sq. Ft. processing center. It will build eight rooms, each 3,800 Sq. Ft. for EU GMP certification requirements.

Chief Executive Officer and President of Emerald, Riaz Bandali said the share gains in early 2020 reflect the leadership of Pure Sunfarms in the market place in terms of higher volumes. Various capabilities, along with the new processing center, expect to improve the ability of Pure Sunfarms to take advantage of its operational knowledge to achieve further growth.

Pure Sunfarms is the bestselling brand in the category of dried flowers in the Ontario Cannabis store as of February 29, 2020. It has gained a market share of 13.5% in terms of kilograms sold. The company has also launched high quality dried cannabis in 28 grams packaging and available at BC cannabis stores online.

Emerald signs an LOI with Sigma Analytical Services Inc

Emerald signed a letter of intent with Sigma Analytical Services Inc to facilitate the takeover of its Avalite cannabis analytical testing operation. The duo also plans to enter into a preferred partnership.

The deal is subject to the approval of the boards of both the companies and after conducting due diligence. It expects to close the deal on or before April 19, 2020.

Village Farms, Pure Sunfarms, and Emerald have announced the settlement of all the disputes. They have discontinued the arbitration process.

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Marijuana

Emerald Health (OTCMKTS:EMHTF) And Valens Groworks (OTCMKTS:VLNCF) Enter Multi-Year Extraction And White-Label Deal

Emerald Health Therapeutics Inc (OTCMKTS:EMHTF) has signed a multi-year cannabis extraction, and white label deal with Valens GroWorks Corp (OTCMKTS:VLNCF).

Emerald to supply 10,000kg annually to Valens for processing

The initial term of the agreement is four years, whereby Emerald will supply at least 10,000 kg of hemp biomass and cannabis per year to Valens. They will supply the product for processing through the exclusive extraction and processing methods of Valens on a fee for service basis.

Besides the extraction and processing services, Valens will also provide white-label services that include mixing, formulation as well as fixing for product formats. The product formats will encompass tinctures, vaporizers, and softgels. Valens has the required license to carry the obligations as indicated under the agreement, and Emerald is expecting to make the first shipment in the first quarter of 2020.

Valens GroWorks CEO, Tyler Robson, stated that they were delighted to partner with Emerald by providing their extraction processing and white label expertise to enhance their supply chain. He added that Emerald has a very important medical marijuana program in Canada, and they were looking forward to working together to help in scaling their operations and expanding their product portfolio.

Emerald Health seeks to exploit Valens’ proprietary fulfillment solution

Riaz Bandali, the CEO of Emerald, indicated that they were pleased to partner with Valens, and they look forward to introducing the products they will produce through the strategic partnership to the market. Bandali added that besides Valens being an industry leader in cannabis extraction, formulation as well as other services, its end-to-end fulfillment solution is cost-effective. As a result, this can help Emerald in transitioning its product ideas into the product in a cost-effective and faster way.

Recently Emerald gave its Pure Sunfarms joint venture $940,000. Thu is part of the agreement to pay around $25.0 million with the exercise of Pure Sunfarm’s acquisition of Delta 2 greenhouse. The company is planning to advance around $710,000 as part of the final payment in January 2020.

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Marijuana

Emerald Health Therapeutics Inc (OTCMKTS:EMHTF) Provides Details About Its Latest Cultivation Expansion License

Emerald Health Therapeutics Inc (OTCMKTS:EMHTF) is pleased to receive the full municipal permitting for its properties in British Columbia. It looks forward to commencing its operations at two of its 78,000 square foot greenhouses. Health Canada has been reviewing the company and after realizing it had met the required conditions gave it the cultivation license amendment.

A close outlook

Emerald is currently staring at an additional license 50,000 square feet growing space, and some other seven grow areas. At the current state of affairs, the business guru can commence its operations at the site. In a statement, the company said it was making plans to kickstart its planting activities at the site. If all moves according to plan, the planting activities may reach completion by the end of Q4.Probably, the first harvest may be in January 2020.

The Chief Executive Officer of Emerald Riaz Bandali has spoken about the matter. He says that they look forward to starting the planting activities. According to the official, the Metro Vancouver organic operation will see the company move to new financial heights.

He also congratulated the company for its most recent achievement. He thinks that the licensing of the Québec premium craft product indoor cultivation site is a major step forward for them. Emerald Health Therapeutics seeks to produce industry-leading products in terms of quality, and it will make it happen in the Metro Vancouver site. The business giant says it will be counting on its extensive experience in production and compliance to make it in the dynamic markets. As always, product consumers in the market aspire to obtain premium organic products, and this is what the company is working towards.

Other major developments

Emerald Health Therapeutics has also spoken about the latest development regarding its wholly-owned production facility, Verdélite. The facility obtained a license amendment permitting from Health Canada. With this development, it seeks to focus on the sale and distribution of packaged, branded dried cannabis products. It will distribute the products to the authorized private retailers and territorial wholesalers. All the products being package by Verdélite are under the Emerald brand.

The other thing is that Emerald Health Therapeutics has distanced itself from certain terms reading its agreement with Pure Sunfarms Corp. It asserts that it doesn’t have any liability in the deal. Pure Sunfarms Corp happens to be Emerald’s 50%-owned joint venture, and the exchanges are in line with the current Supply Agreement between the two. The company is not happy with the way the joint venture conducted the Supply Agreement.

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Marijuana

Emerald Health Therapeutics Inc (OTCMKTS:EMHTF) Offers Ultra Pure CBD Oil To The Consumers In British Columbia

Emerald Health Therapeutics Inc (OTCMKTS:EMHTF) has launched ultra pure sync 25 CBD oil to fill the recreational space in British Columbia. It is a smoke-free and non-THC alternative to the consumers.

Emerald has sent 6,000 40 ml units of Sync 25 CBD oil to BCLDB (British Columbia Liquor Distribution Branch). Executive Chairman and President of Emerald, Dr. Avtar Dhillon said the company is pleased to introduce wellness product SYNC 25 under its brand to fill the gap in the recreational market of British Columbia.

Extraction of SYNC 25 CBD oil

The new product launch is part of Emerald’s growth strategy, and to enjoy higher profit margins through developing quality and innovative products. Medipharm Labs Inc extracts the SYNC 25 CBD oil for Emerald.

CEO of Medipharm, Pat McCutcheon said the company’s expertise in extracting the SYNC 25 CBD oil complements the success of Emerald to introduce the product to meet the growing demand. The company will strive to supply high-quality cannabis concentrates on supporting the expansion plans of Emerald. SYNC 25 CBD oil is available online for immediate purchase.

Appointment of Chief Operating Officer

Emerald has posted Sean Rathbone as COO. He will contribute expertise in technology advancement, corporate process management, operational leadership, raw materials refinement, and waste reduction.

Executive Chairman said Rathbone is an industrial engineer and brings experience in promoting the growth of operational mandate on a large scale. Rathbone will play a vital role in introducing technologies, processes, and policies to achieve the production targets as Emerald continues on an expansion spree to satisfy the growing demand for cannabis products in Canada. He will ensure operational efficiencies and maintain performance standards companywide.

Rathbone has played the role of Vice President (Production), Western Canada at Agropur. He also worked as a Manager (Manufacturing R&D) BDO Canada LLP.

Standard processing license

Health Canada has awarded standard processing license to Pure Sunfarms for 1.1 million sq. Ft Delta 3 Greenhouse facility. The license allows Pure Sunfarms the extraction and processing of cannabis at Delta 3 Greenhouse facility. Emerald holds a stake of 50% in the joint venture: Pure Sunfarms, which requires an amended sales license to market cannabis oil.

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