Emerald Health Therapeutics Inc (OTCMKTS:EMHTF) has truly exploded higher in recent action. The pot space has been hot, but EMHTF has clearly been out in front of the pack, rising from just around $1/share back in October to well over $6/share now, just three months later. That momentum has been accelerating in recent action, which always increases a company’s options, as is the case here.
As a case in point, the company just announced that it has entered into a binding term sheet with a single Canadian institutional accredited investor under which “the Investor has agreed, subject to certain customary conditions, to purchase 3,000,000 units of the Company at a price of $5.00 per Unit for total gross proceeds of $15,000,000. The securities forming the Units will be qualified under a shelf prospectus supplement to be filed by Emerald prior to closing.”
Emerald Health Therapeutics Inc (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, “Emerald Health Therapeutics Inc (OTCMKTS: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 we covered above, EMHTF has been on fire, launching higher in an accelerating parabolic breakout that has run ahead of the red hot cannabis patch over recent weeks. This share performance has enabled an easy time finding ways to beef up capital, as exemplified by the company’s recent investment deal.
According to the release, “the Investor has also agreed to purchase from Emerald Health Sciences Inc., a control person of the Company, 2,000,000 Common Shares held by Sciences at a price of $5.00 per share. The Secondary Sale will close concurrently with the closing of the Offering. The Company intends to use the net proceeds of the Offering for its production and R&D-related growth plans, working capital and general corporate purposes.”
We’ve witnessed just under 150% tacked on to share pricing for the listing 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 benefitted from a jump in recent trading volume to the tune of more than 390% beyond its prior sustained average level.
Earning a current market cap value of $660.4M, EMHTF has about $28M in cash on the books, which is balanced by roughly $14M in total current liabilities. The company has pulled in about $470K in TTM revenues. This is an exciting story, and we look forward to a follow-up chapter as events transpire. 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.