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Emerald Health Therapeutics Inc (OTCMKTS:EMHTF) Is Acquiring Its Way to The Top

Emerald Health Therapeutics Inc (OTCMKTS:EMHTF) Is Acquiring Its Way to The Top
Written by
Jim Bloom
Published on
June 14, 2018
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It has been a while since we last took a look at Emerald Health Therapeutics Inc (OTCMKTS:EMHTF). Over this period, the company’s share price, which had previously been rocked by high volatility, has since stabilized.The company’s price movement can be seen below: EMHTF Daily ChartIn our last report – which readers can access here for more information, we came to a conclusion that their expansionary strategy had come to provide them with the solutions they needed to grow further within the cannabis sector. Their foothold within the British Columbia region had been well established and they were bound to ensure that they grew further over time.Since then, the company has been focused on bettering its business case through a series of joint ventures with different companies as well as strategic acquisitions meant to boost their production capabilities within the sector.Their managements’ goals seem very clear ad well defined as such, we believe that Emerald Health Therapeutics is definitely due for a comeback quite soon.The History of Emerald Health Therapeutics IncLet us first learn a bit about EMHTF for the sake of first-time readers.The history of EMHTF dates back to July 2007 when the company was incorporated under the laws of Victoria, Canada. The company was formed during a period when Canada had just begun playing host to a myriad of cannabis companies. During this period, Emerald and its competitors were banking on a few benefits which Canada provided cannabis players to grow their core business and venture into new markets in the process.As previously mentioned, the company’s core business was tailored towards cannabis. Back then, their goal was to become the dominant player in the distribution of cannabis within the pharmaceutical industry. As such, the company eventually became the first entity to be licensed as a producer and seller under Canada’s Access to Cannabis for Medical Purposes Regulations (ACMPR). Eventually, the firm also began producing their own marijuana products, therefore, incorporated both product development and health sciences into their core business.Since then, their management realized that the one way in which they would reap the full benefits of cannabis was through securing enough land to enable them to boost their long-term production. They, therefore, have been using a series of joint ventures to obtain large tracts of land – their largest being a joint venture with Village Farms International, Inc which ensured they would convert about 1.1 million square feet (101,951 square metres) into cannabis growing land.All in all, the company’s long-term horizon seems to be well stipulated by their management. As such, we have decided to take a look at the current steps they have taken to ensure that they achieve this in a timely fashion.Recent DevelopmentsEmerald began last month with a major acquisition.On the 2nd of May, the company announced that it had acquired the shares of Canada Inc, an Access to Cannabis for Medical Purposes Regulations (ACMPR) licensed producer located within Saint-Eustache, Quebec.Through it, Emerald would benefit from the very low-cost energy and water thus ensuring that the acquisition can grow the unique strains of cannabis which Emerald have come up with over the years. Over time, Emerald has strengthened their product research and development – making it among the best in the market – which puts their vision in clear sight. Their goal is the integration of all faculties and culminates in the creation of a full cannabis package within the fast moving consumer goods sector, specifically the consumer-packaged goods and beverage sectors.In his speech, the Agro-Biotech President Yan Dignard was quick to praise Emerald while explaining their focus on the cannabis sector. He was quoted saying:

“Agro-Biotech is one of only six Licensed Producers in Québec, Canada’s second largest province with a population of over 8.4 million… We did this deal as we respect Emerald’s capabilities and look forward to working with their team to build a strong and differentiated cannabis product line in Québec and across Canada.”

Source:The above deal also plays a key role in ensuring that Emerald reaches their key objective of producing over 100,000 kilograms of cannabis per annum. In fact, courtesy of the deal, the firm has met one of its greatest hurdles and surpassed it by over 7,000 kilograms – courtesy of the efficiency brought to them by Agro-Biotech. Through harnessing this, they believe that they will meet their eventual objective and meet the demand expected within Canada.Eventually, the Emerald team is quite certain that the above deal will pay off for them and ensure that they turn both cash flow positive and profitable.Emerald FinancialsThe company’s revenues were up over 33%, rising to $373,218 from $279,362. This is no mean feat for them as it speaks to the company meeting their current objectives and strengthening their core market base.Such growing figures played a key role in ensuring that the company successfully closed their $16.8 million prospectus sale during the month of May as the market could see the value the company promised them coming to light. Despite their net loss position increasing – mainly driven by the share-based payments – the company’s core business seems to be on the rise. With this, coupled with a strengthening production capacity – it will come as no surprise when EMHTF rises to the top of the market.ConclusionEMHTF is a success story. Through their well-calculated acquisitions and well-tailored growth strategy, the company is on its way to meeting a most of their strategic objectives. Their trend seems to be quite positive. As such, we remain bullish about their long-term share price.We will be updating our subscribers as soon as we know more. For the latest updates on EMHTF, sign up below!Disclosure: We have no position in EMHTF and have not been compensated for this article.

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