One stock we recently highlighted as a potential breakout candidate is Emerald Health Therapeutics Inc (OTCMKTS:EMHTF), which has indeed vindicated that bias in striking fashion over recent days, with shares powering through major resistance levels on expanding volume. Helping to define the story, the company just announced that its joint venture partner, San Diego-based Emerald Health Bioceuticals, has launched its award-winning Endo products in Whole Foods Markets across the United States, highlighting the unique positioning and opportunity for this product line when it is launched in Canada in 2019.
According to the release, “The joint venture, called Emerald Health Naturals (“EHN”), secured Canadian distribution rights for this product line that was developed to support the body’s endocannabinoid system (ECS), but which does not contain cannabis. Canadian retailers have not been announced.”
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, EMHTF just announced that its joint venture partner, San Diego-based Emerald Health Bioceuticals, has launched its award-winning Endo products in Whole Foods Markets across the United States.
Recent action has seen 28% during the past week in terms of shareholder gains in the company. Furthermore, the stock has seen a growing influx of trading interest, with the stock’s recent average trading volume running 46% over what the stock has registered over the longer term.
“For the Endo products to be embraced by retailers with such high standards of retail excellence and broad reach like Whole Foods Market in the US is an important milestone for this unique natural health supplement line,” said Gaetano Morello, ND, CEO of Emerald Health Naturals. “A non-cannabis product line capable of nurturing the endocannabinoid system is a unique product category – and it is one that is garnering significant attention in the US. We aim to similarly build strong distribution channels with top retailers in Canada in 2019.”
Currently trading at a market capitalization of $374.21M, EMHTF has a significant war chest ($52.9M) of cash on the books, which stands against about $30.7M 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 $1.3M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 51.9%. As more color becomes clear on the name, we will review the situation and update our take. 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.