As the cannabis space heats back up, we are finding a number of new plays hitting our radar as momo setups, with Emblem Corp (OTCMKTS:EMMBF) qualifying as the latest. Helping to drive the action, the company just announced that it has established a working capital advance for Natura Naturals Holdings Inc. to support the completion of phase 1 construction while the two companies complete due diligence and negotiation of a definitive agreement in connection with the previously announced acquisition of Natura by Emblem.
According to the release, “Based in Leamington, Ontario, Natura operates a 662,000 sq. ft licensed greenhouse that is currently undergoing a phased conversion and retrofit. After the completion of phase 1 in 2018, Natura expects to achieve an annual run-rate of 15,000 kgs. Natura expects to have its first harvest early in Q4. Once completed in 2019, the facility is expected to bring total annualized cannabis production capacity to approximately 70,000 kg per year.”
Emblem Corp (OTCMKTS:EMMBF) frames itself as a company that produces, distributes, and sells medical cannabis and cannabis derivatives in Canada.
The company also operates medical cannabis education centers to provide education services for making informed decisions about medical cannabis treatment options to physicians and patients. In addition, it provides various accessories. Emblem Corp. has a strategic partnership with GreenSpace Brands to develop and commercialize cannabidiol infused health and beauty products.
The company is headquartered in Toronto, Canada.
According to company materials, “Emblem, through its wholly-owned subsidiary Emblem Cannabis Corporation, is a fully integrated licensed producer and distributor of medical cannabis and cannabis derivatives in Canada under the ACMPR. Emblem’s state-of-the-art indoor cannabis facility and research and development laboratory is located in Paris, Ontario. Led by an experienced management team of healthcare executives, accomplished marketing professionals, and cannabis experts, Emblem is focused on driving shareholder value through product innovation, brand relevance, and access to patient and consumer channels. Emblem is also the parent company of GrowWise Health Limited, one of Canada’s leading cannabis education services. Emblem trades under the ticker symbol EMC on the TSX Venture Exchange.“
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As noted above, the stock caught fire last week, driven by its position in the red-hot cannabis space and its announcement that it has capitalized initial activity for expansion of its recent acquisition producer in the patch. The chart shows 32% during the past week in terms of shareholder gains in the listing, a bounce that has taken root amid largely bearish action over the larger time frame.
Moreover, the name has seen interest climb, with an increase in recent trading volume of just shy of 150% over the long run average.
Nick Dean, CEO of Emblem explained: “To further drive our recent revenue growth and support new distribution agreements, including the Ontario Cannabis Store and the Alberta Gaming, Liquor, and Cannabis Commission, maintaining momentum of the Natura buildout is a high priority. Immediate production from Natura addresses the growing demand from the new markets coming online for Emblem. The near-term supply supports the continued execution of our aggressive growth strategy.”
At this time, carrying a capital value in the market of $142.36M, EMMBF has a significant war chest ($83.8M) of cash on the books, which stands against virtually no total current liabilities. EMMBF is pulling in trailing 12-month revenues of $3.1M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 41.4%. This may be a very interesting story and we will look forward to updating it again soon. Sign-up for continuing coverage on shares of $EMMBF 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 $EMMBF, either long or short, and we have not been compensated for this article.