Emblem Corp (OTCMKTS:EMMBF) Skyrocketing As Bulls Regain Control

Shares of Emblem Corp (OTCMKTS:EMMBF) are flying high in the market on the company affirming its commitment to becoming a leading producer of cannabis-derived products. The signing of a Supply Agreement with Aphria Inc (OTCMKTS:APHQF) is another development that affirms how committed the company is about growing its brand.The stock has also been flying high on the company achieving a significant milestone in the development of a patent-pending oral extended release formulation for Cannabinoids. A robust second-quarter depicted a by a 180% increase in revenue is another catalyst that continues to strengthen the stock’s sentiment among investors.Emblem Corp Price AnalysisEmblem has turned bullish after coming under immense short selling pressure at the start of the year. A 60% plus rally since August, all but affirms the emerging uptrend as investors take note of the underlying solid fundamentals. The stock has since pulled back from the $1.50 level to the $1.30 level, where it appears to have found strong support. EMMBF Daily ChartImmediate resistance is seen at the $1.50 level above which the stock is likely to continue powering high. Below the $1.30 level, the stock could drop to the $1.20 level, seen as the next substantial support level. Taking into consideration recent developments the stock looks set to continue climbing high.

About Emblem Corp

Emblem Corp is a Canadian company that produces, distributes and sells medical cannabis as well as cannabis derivatives. The company also offers education services through its cannabis education centers in a bid to help people make informed decisions about medical cannabis treatment options.

Double-Digit Revenue Growth

After a ferocious bearish run, the stock turned bullish on the announcement of stellar financial results for the second quarter. Investors pushed the stock higher on the company reporting revenues of $1.5 million, representing a 180% increase. The company attributes the increase to the commencement of oil sales and higher patient education revenues.Demand for the company’s medical cannabis products is also on the rise on the company establishing itself as a trusted brand in the medical cannabis space.

“I’m pleased to report a robust second quarter with substantial progress in sales, patient counts, capacity, distribution, and product development. We remain steadfastly focused on executing against our plan and building a sustainable business that will drive long-term value for our shareholders,” said CEO Nick Dean.

Supply Agreements

In a bid to strengthen the current pipeline of products to be able to meet growing demand, Emblem Corp has established a working capital advance with Natura Naturals Holding Inc. Under the terms of the deal, the company is to fund completion of phase 1 construction of Natura greenhouse. Natura expects to increase its annual rate of 15,000kgs as a result of the expansion.Cannabis production from Natura should help support the growing demand for Emblem products especially online. According to the Chief Executive Officer near term, supply from Natura should help support the company’s aggressive growth strategy.Emblem Corp has also signed a supply agreement with Aphria for the purchase of an aggregate 175,000 kg equivalent of cannabis products over a five-year term. Emblem is to pay Aphria an initial deposit of $12 million and issue 6.9 million shares as part of the deal.Aphria, on the other hand, has agreed to provide Emblem with a mix of dried flowers as well as crude cannabis oil.

“Emblem’s supply agreement with Aphria marks a critical point in our evolution. It allows Emblem to remain focused on strengthening our core competencies of product innovation, brand building and securing distribution. Aphria’s support solidifies Emblem’s dedication to becoming a leading producer of cannabis-derived products in the health and wellness space,” said Mr. Dean.

In addition to strengthening its supply of cannabis to meet growing demand, Emblem has achieved a significant milestone in the strengthening of its medical market. In partnership with Canntab Therapeutics, the company is set to begin a 12-hour clinical testing of its oral extended release formulation for Cannabinoids.According to the Chief Executive Officer, the extended-release formulation should be a game changer in the medical cannabis market going forward.

Bottom Line

It is evidently clear that Emblem Corp is firing on all fronts right from revenue growth to strengthening its pipeline of cannabis products. A partnership with Aphria is a development that cannot be taken lightly as the company moves to meet the growing demand for its medical marijuana products.Renewed investor confidence in the stock does not come as a surprise given the solid fundamentals. That said, the stock looks set to continue climbing high after the recent steep pullback. For fortune seekers, this might be an appropriate stock for gaining exposure in the burgeoning cannabis sector.We will be updating our subscribers as soon as we know more. For the latest updates on EMMBF, sign up below!Disclosure: We have no position in EMMBF and have not been compensated for this article.