As we have watched the cannabis space catch fire once again over the past week, several stocks have broken above important resistance levels, with one good example being Emerald Health Therapeutics Inc (OTCMKTS:EMHTF). We noted a few days ago that the stock looked like a turnaround in the making. That turned out to be a prescient observation as shares just powered above the 50-day simple moving average as well as the critical support level established in April around the $3/share area on a monster move in recent days.
To further fuel the fire, the company just announced that Mandesh Dosanjh has been appointed President and Chief Executive Officer of Pure Sunfarms Corp., their 50/50 owned cannabis joint venture, effective on or before October 1, 2018. According to the release, “Mr. Dosanjh joins Pure Sunfarms from his position as Senior Vice President, Supply Chain and Wholesale, at the Liquor Control Board of Ontario (LCBO), where he led LCBO’s supply chain division, and developed and managed its supply chain and wholesale strategy as the LCBO prepared for the legalization of adult-use cannabis.”
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.”
Find out when $EMHTF reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.
As noted above, EMHTF shares have recently caught fire. Traders will note 52% added to share values of the name over the past week of action, a rally that has pushed up against longer standing distributive pressure in the stock. In addition, the name has witnessed a pop in interest, as transaction volume levels have recently pushed 79% beyond its prior sustained average level.
Mr. Dosanjh commented, “Over the past two years at the LCBO, I became immersed in the Canadian cannabis industry and gained an in-depth knowledge and understanding of its many suppliers. Pure Sunfarms truly stands out in the industry for both the experience and expertise of its team, and the quality of its growing operations, strongly positioning it for leadership in the adult-use market,” said Mr. Dosanjh. “I look forward to the opportunity to leverage my in-depth knowledge of the Canadian cannabis product landscape, as well as my many years managing consumer packaged goods supply chains, to drive the success of Pure Sunfarms as a fully integrated cannabis products business.”
Currently trading at a market capitalization of $391.6M, EMHTF has a significant war chest ($89.5M) of cash on the books, which compares with virtually no total current liabilities. EMHTF is pulling in trailing 12-month revenues of $1.1M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 85.4%. You can bet we will update this one again as new information comes into view. 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.