Emerald Health Therapeutics Inc (OTCMKTS:EMHTF) Upside Breakout Looms

Emerald Health Therapeutics Inc (OTCMKTS:EMHTF) is seeing impressive gains as investors react to a string of milestones that affirm the company’s long-term prospects. The stock is threatening to break out of a tight trading range as the upside action continues to gather pace.

Share Price Analysis

The stock has taken a flight, rallying by more than 100% from this year’s low. The spike comes on the company confirming the acquisition of a proprietary extraction technology and extraction capabilities. Renewed investor interest in the stock also comes on the heels of the research firm, Jefferies, initiating coverage of the stock with a ‘buy’ rating.The announcement that the company continues to enjoy robust sales after completing its first cannabis shipment to Ontario Cannabis Retail Corporation also continues to excite investors. With each pullback, the stock has continued to power up in continuation of the emerging uptrend. EMHTF Daily ChartAfter the recent spike, the stock is staring at the $4.30 level, which is a crucial resistance level. A breach of the resistance level should reaffirm a bullish stance on the stock. Emerald Therapeutics needs to rise and stabilize above the $4.20 level to avert concerns of further slides after the underperformance of 2018. Above the $4.20 level, the stock should be on its way to 52-week highs of $5.

About Emerald Therapeutics

Emerald Therapeutics together with its subsidiaries is engaged in the production and distribution of medical cannabis in Canada. The company is part of the Emerald Health Group, better known for the development of an array of pharmaceutical, botanical and nutraceutical products.

Why is Emerald Therapeutics Surging?

Emerald Therapeutics excellent start to the year can be attributed to many things key among them being strengthening growth prospects. The company is fresh from securing a proprietary extraction technology that paves the way for it to come up with novel cannabinoid products.The company has consequently inked a strategic partnership with Italy’s Indena S.p.A to leverage its Phytosome technology. The two have also agreed to establish a research collaboration for the development of cannabis products.

“By gaining access to their technology, know-how, and expertise, Emerald is propelling itself as a leader in the innovation of next-generation CBD-based products,” said Emerald CEO Dr. Gaetano Morello.

Strengthening Production Capacity

Emerald Therapeutics is focused on increasing its cannabis production capacity as it seeks to address the ever-growing demand for cannabis products. The company is fresh from fulfilling its first purchase order in Ontario as it continues to meet its supply commitments.In addition to the Ontario supply, Emerald Therapeutics has also secured a new wholesale supply agreement with Canna Farms. With the new deal, the company will be able to supply a variety of Pure Sunfarms-branded products.The company’s cannabis supply mostly comes from its 88,000 sq. Ft. Verdélite indoor facility in Quebec. The facility should benefit a great deal from the extraction technology the company is licensing from Indena. The company is also planning to expand its cannabis volume from outdoor facilities. Last year the company acquired 500 acres of harvested hemp. This year it plans to purchase approximately 1,000 acres.

“We now have distribution access to over half of the Canadian population of adult-users of non-medical cannabis. We are advancing prospective supply agreements that we expect will ultimately give us nation-wide market exposure,” said Dr. Avtar Dhillon, President and Executive Chairman of Emerald.

Emerald cannabis production capacity has also received a boost on its 50%-owned joint venture accepting a seventh amendment, to its cultivation license. The approval means the company can go forth and add about 206,000 square feet of growing area. The addition would take the Unit’s cannabis production area to approximately 1.03 million sq. Ft. made up of 16 grow rooms.

Bottom Line

For investors looking for a fast growing stock seeing plenty of opportunities, then Emerald Therapeutics is an ideal pick. The company has achieved significant progress in its bid to become a leading player in the cannabis sector. Expansion of cannabis cultivation and production capacity means the company is well positioned to benefit as demand for cannabis products continues to increase. As it stands Emerald Therapeutics remains well positioned to continue edging higher as a fundamentally attractive investment.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.