Emblem Corp (TSXV:EMC) (OTCMKTS:EMMBF) Is Today's Cannabis Focus

Emblem Corp (TSX:V) (OTCMKTS:EMMBF) has quickly become one of the most talked about names among pot stock investors. Part of the reason for this is the fact that the Emblem Pharmaceutical division is lead by John Stewart, who launched 11 new products, including OxyContin, as CEO of Purdue Pharma LP. The other reason is the booming cannabis market in Canada. As we take a closer look, you'll see that Emblem Corp is a must-own in the cannabis space.First up, a little background on the company. Emblem is licensed under the Access to Cannabis for Medical Purposes Regulations (the “ACMPR”) to cultivate and sell medical marijuana. Emblem carries out its principal activities producing marijuana from its facilities in Paris, Ontario pursuant to the provisions of the ACMPR and the Controlled Drugs and Substances Act (Canada) and its regulations. Emblem was incorporated under the CBCA on October 8, 2014 under the name KindCann Holdings Limited, then changed its name to Emblem Corp on September 1, 2016. Emblem came public via a merger with Saber Capital Corp, a capital pool company.The latest news from the company is a C$10 million special warrant bought deal with PI Financial Corp. PI Financial and its fellow underwriters agreed to purchase 2,754,821 special warrants of the Company at a price per special warrant of C$3.63. The Company intends to use the net proceeds of the Offering to fund the planned expansion of its facility in Paris, Ontario and for general corporate purposes. Once the offering is complete, Emblem will have a war chest of about C$37 million.Last month, Emblem received confirmation from Health Canada that its license under the ACMPR will be amended to permit the production of cannabis oils. Emblem Corp has already invested over C$1 million to date into its extraction and purification platform, including a supercritical CO2 extractor, purpose built rooms, and analytical equipment. The license amendment enables Emblem to better serve patients by providing a broad range of cannabis products. To keep up with demand, Emblem is constructing a 2,500 sq. ft. dedicated extraction and formulation development laboratory on its property in Paris, Ontario.The Paris, Ontario facility is located on three acres of industrial zoned lands which is suitable for significant expansion. The Existing Facility consists of a 23,500 sq. ft. production building and a separate 3,500 sq. ft. administration building. In October, 2015 Emblem purchased a contiguous 1.2 acre parcel of land with a 5,000 sq. ft. administration building. The main 23,500 sq. ft. production building has been renovated to incorporate 2,400 sq. ft. of mothering and vegetation rooms and 3,200 sq. ft. of flowering rooms together with attendant drying, packaging & fulfillment areas, vault area and administration. The production building also has an additional three growing rooms comprising 4,800 sq. ft. that are currently being completed and equipped and are expected to be put into production in February/March of 2017. In the shareholder update, CEO Gordon Fox said:

Our facility currently operates with two flowering rooms, one vegetation room, one mothering room and one propagation room, supported by trimming and drying facilities, fulfillment, administration and a 625kg vault. We will commission three new growing rooms in March and a 4^th in June. We're currently growing a total of 12 strains, with a variety of CBD and THC strains, (indica, sativa & hybrids). We have an excellent cultivation plan and a superb growing team to carry it out. Our growers are passionate and experienced. Management's mission is to provide our growers with the ideal growing environment to produce the highest quality offerings for both the medical and anticipated recreational market.

Emblem's healthcare division, GrowWise Health, is designed to address the challenges that patients are confronting as they attempt to access the ACMPR system. The registered patient base in Canada is growing at about 10% per month. However, the number of physicians prescribing medical cannabis is not meeting this demand. GrowWise aims to address this challenge by expanding its clinic network.Where we believe Emblem will stand out compared to its peers is in the Canadian recreational market, which we expect to open up within the next few months. In the shareholder update, CEO Gordon Fox said:

We continue to perceive that the recreational market will evolve into a distinct "table wine" market and "fine wine" market. Emblem will be focusing on the upper echelon of the recreational market where we perceive that margins will be the most attractive. To pursue this objective Emblem will be deploying significant capital for the construction of the highest possible "closed box" horticultural environment capable of producing the highest quality product, at scale. We have plans and funding in place to build and commission capacity to 12,000 kgs annually for the arrival of recreational cannabis. We have additional longer-term plans to expand production to over 21,000 kgs annually.

Currently trading with a market cap of C$237 million, Emblem Corp has one of the best management teams in the entire cannabis space. With a well thought out business plan and the right management to execute this plan, we believe Emblem Corp is one of the must-own pot stocks for investors. We expect Emblem Corp to deliver big gains in 2017. We will be updating our subscribers as soon as we know more. For the latest updates on Emblem Corp, sign up below!Disclosure: We have no position in Emblem Corp and have not been compensated for this article.