Shares of Emerald Health Therapeutics Inc (OTCMKTS:EMHTF) have been sliding in recent action after breaking under key support at the $1.50/share level. The stock battled for that level, but ultimately succumbed in a trend that has resisted the lure of a number of seemingly positive catalysts along the way. To further the cause of support, the company just announced that its 50%-owned joint venture for large-scale, low-cost, high-quality cannabis production, Pure Sunfarms (PSF), has formally launched its Pure Sunfarms branded products and introduced eight strains of dried cannabis flower for the Canadian recreational market.
According to the release, it has also begun shipping branded dried cannabis products to the Ontario Cannabis Store (“OCS”) for retail sale in Ontario. PSF expects its first products to be available at licensed retailers in Ontario and through the OCS website this month.
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 50%-owned joint venture for large-scale, low-cost, high-quality cannabis production, Pure Sunfarms (PSF), has formally launched its Pure Sunfarms branded products and introduced eight strains of dried cannabis flower for the Canadian recreational market.
The chart shows a steep downward trend. Volume has been steady and the offer has been thick. However, the stock is starting to probe some levels that could represent key support if a bid steps in.
“Introducing the Pure Sunfarms brand today to Canadians is a culmination of our team’s efforts, and we hope consumers see the passion and care our people have worked hard to bring to life,” said Mandesh Dosanjh, President and CEO, Pure Sunfarms. “British Columbia has a reputation for growing some of the best cannabis in the world, and we are proud to introduce a suite of products which will continue to celebrate this legacy. Our scale, along with the team’s deep agricultural roots and steadfast dedication to craftmanship, has allowed us to cultivate great-quality products at an approachable price point. In this evolving industry, we hope Canadians will come to know the quality and consistency of Pure Sunfarms’ products and love it as much as we do.”
Now commanding a market cap of $181M, EMHTF has a significant war chest ($2.6M) of cash on the books, which is balanced by about $49.5M in total current liabilities. EMHTF is pulling in trailing 12-month revenues of $8M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 1525%. 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 $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.