EMERALD HEALTH THE (OTCMKTS:EMHTF) has come seemingly out of the blue to suddenly become one of the most explosive names in the cannabis patch this Fall and into the Winter. As we approach year-end, the stock is once again threatening new trend highs in a wild rally that has powered as much as 281% higher since late October.
The latest from the company comes in the form of its announcement that it has elected to exercise its right to accelerate the exercise of $2.00 common share purchase warrants issued by the Company on February 10, 2017. According to the release, “pursuant to the terms of the Warrants, the Company may accelerate the expiry date of the Warrants when the closing sale price of Emerald’s common shares on the TSX Venture Exchange is greater than $2.50 per share for a period of 20 consecutive trading days and by giving notice to the holders thereof.”
EMERALD HEALTH THE (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, 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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“The exercise of the vast majority of the two sets of warrants recently issued by Emerald long before their expiry dates – and well ahead of their acceleration trigger events – is great news for the Company’s shareholders as Emerald has received $26.5 million from these warrant exercises,” said Avtar Dhillon, MD, Executive Chairman of Emerald. “These funds will support our advancing production scaling and production innovation plans. Construction of our wholly-owned Metro Vancouver greenhouse and conversion of our partnered greenhouse in Delta, BC are progressing well. Full implementation of these facilities will place Emerald in the top tier of production capacity among Canadian Licensed Producers as we prepare for full legalization of adult use cannabis in 2018.”
Traders will note 74% tacked on to share pricing for the name in the past month. Market participants may want to pay attention to this stock. EMHTF is a stock whose past is littered with sudden rips. Furthermore, the stock has benefitted from a jump in recent trading volume to the tune of a bit less than 400% beyond what we have been seeing over the larger time frame.
Earning a current market cap value of $396.7M, EMHTF has about $28M in cash on the books, which is balanced by roughly $14M in total current liabilities. The company has pulled in about $470K in TTM revenues. 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.