The Wave of New Expansion Continues to Drive Emerald Health Therapeutics Inc...

The Wave of New Expansion Continues to Drive Emerald Health Therapeutics Inc (OTCMKTS:EMHTF)


We pointed out the Emerald Health Therapeutics Inc (OTCMKTS:EMHTF) breakout a few days ago, and now we’re pointing out that it is extending on rising volume. Helping to keep the good times rolling, the company just announced that it has been selected as an authorized cannabis supplier by the Newfoundland Labrador Liquor Corporation to supply cannabis products to the NLC and serve the adult-use market throughout the province of Newfoundland Labrador starting October 17.

“We’re proud to work with the NLC as a preferred Licensed Producer to serve Newfoundland and Labrador in the upcoming legal cannabis market,” said Chris Wagner, CEO at Emerald. “This represents the third provincial agreement for our team and we expect to share additional supply updates in the future.”

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 noted above, shares of EMHTF have been breaking out to the upside as the company continues to put strong expansion on display. Its latest announcement pushes the company into the new market in the Newfoundland Labrador territory, helping to drive shares higher. In all, the chart shows above 120% tacked on to share pricing for the stock in the past month, but this action is running counter to the larger trend in the name.

Moreover, the company has benefitted from a jump in recent trading volume to the tune of above 130% above its longer-run average levels.

According to the release, “With its previously announced supply agreements with the provinces of British Columbia and Ontario, as well as its commercial production facilities quickly ramping up in British Columbia and Quebec, Emerald is prepared for the adult-use market. The company is focused on product innovation that will command high-profit margins; differentiating its marketing strategy; and securing significant supplies of safe, quality, low-cost cannabis.”

Currently trading at a market capitalization of $592.88M, EMHTF has a significant war chest ($72.7M) of cash on the books, which must be weighed relative to about $26.3M in total current liabilities. One should also note that debt has been growing over recent quarters. 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 15.7%. 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.

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