EMERALD HEALTH THE (OTCMKTS:EMHTF) is a new player on the scene that we introduced to readers a couple weeks ago as a very promising story in the cannabis patch. The stock continues its upward assault on the OTC marketplace, breaking out to new highs yet again this week. The company is moving on a key asset in Canada, which lays the backdrop for its latest catalyst:

The company just announced today that it has completed its previously announced investment of $2.5 million into Northern Vine Canada Inc. to acquire 53% of the company and appoint three of its four directors. ABATTIS BIOCEUTICA (OTCMKTS:ATTBF) will continue to hold the remaining 47% of Northern Vine.

EMERALD HEALTH THE (OTCMKTS:EMHTF) trumpets itself as a licensed producer of medical marijuana under the Access to Cannabis for Medical Purposes Regulations, which allows the company to produce and sell medical marijuana and cannabis oils to clients and other licensed producers.

Individuals may become clients of the company by registering with the company through its secure online portal or via telephone after the individual has received a medical document signed by a licensed health care practitioner setting out the daily quantity of dried marijuana, in grams, that the practitioner authorized for the person.

According to company materials, “, Inc. (TSXV:EMH) (OTCQX:EMHTF) operates through Emerald Health Botanicals Inc., a wholly owned subsidiary and Licensed Producer under the Access to Cannabis for Medical Purposes Regulations. Botanicals is authorized to produce and sell both dried medical cannabis flower and medical cannabis oil in Canada. Botanicals currently operates an indoor facility in Victoria, BC, and is progressing on expansion plans for a 32-acre property in Metro Vancouver and a partnership with Village Farms, called Pure Sunfarms, utilizing a 25-acre existing greenhouse complex in Delta, BC. Botanicals is one of Canada’s most medically focused licensed producers, with a team highly experienced in life sciences product development and large-scale agribusiness. Its vision is to be a leading provider of cannabis products through its production capabilities, proprietary genetics, value-added products and branding, and superb customer experience. Emerald Health Therapeutics is associated with the Emerald Health group, which comprises multiple companies advancing diverse botanical, nutraceutical and pharmaceutical products that may provide wellness and medical benefits by interacting with the body’s endocannabinoid system.”

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As discussed above, EMTHF shares have been on a major bull run of late, and much of this is tied to the Northern Vine controlling interest investment.

According to the release, “this investment also exposes Emerald to a new business and market opportunity: the growing cannabis analytical testing. Northern Vine’s analytical testing operation currently offers LPs and patients registered under the ACMPR complete microbiology and chemical analyses, including testing for product potency and unwanted pesticides, microbes, and environmental toxins in dried plant products, extracts, derivatives and edibles. The cannabis analytical testing market is expected to grow commensurately with the growth of cannabis production for medical and, when legalized, recreational purposes.”

“Abattis has been seeking a strong partner with technical depth in the life sciences world to help us advance our Northern Vine analytical testing services and to optimally leverage our Licensed Dealer status. We are pleased that Emerald Health Therapeutics has embraced this opportunity,” said Robert Abenante, President and CEO of Abattis and Northern Vine.

“We look forward to working with the Northern Vine team to build their analytical testing business and to pursue strategic opportunities enabled by their dealer license,” said Avtar Dhillon, MD, Executive Chairman of Emerald. “As we aggressively advance our cannabis production expansion plans, we continue to seek business development opportunities to increase shareholder value.”

The chart shows 82% tacked on to share pricing for the name in the past month. Market participants may want to pay attention to this stock. EMHTF has evidenced sudden upward volatility on many prior occasions. Moreover, the name has registered increased average transaction volume recently, with the past month seeing greater than 400% over the long run average.

Now commanding a market cap of $194.6M, EMHTF has virtually no cash on the books, which is balanced by virtually no total current liabilities. The company is pre-revenue at this point. We will update the story again soon as further details emerge. Sign-up for continuing coverage on shares of $EMHTF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $EMHTF, either long or short, and we have not been compensated for this article.

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