VICTORIA, July 6, 2017 /CNW/ - Emerald Health Therapeutics
Inc. (TSXV:EMH; OTCQX:TBQBF) ("Emerald" or the "Company") is
pleased to provide a corporate update on recent developments as
well as reiterate the Company's vision for growth in 2017 and
onward.
Emerald's vision is to be a leading provider of cannabis
products. As the eighth licensed producer in Canada, Emerald's methodical approach to
building its business has focused on its core competency: clinical
research and the development of intellectual property for
downstream cannabis products. The Company recently announced
several substantial developments and is pursuing multiple
opportunities to fulfill its strategy.
Emerald is focused on four pillars to meet the current needs of
the Canadian medical marijuana market and future demand in the
therapeutic and non-therapeutic adult-use market:
- Significant production expansion
- Research & development and clinical work
- Extraction expertise and downstream product development
- Expanding nationwide distribution channels.
Rapidly and Cost Effectively Scaling Capacity
Emerald is undergoing two major expansion projects that will
greatly increase production capacity, supporting the Company's
flower and extract production. These projects will enable us to
produce high quality, low cost cannabis and provide the backbone
for all of Emerald's medical and adult-use endeavours.
Metro Vancouver: Subsequent to
the announcement last November of the Letter of Intent, the Company
has entered into a 30 year lease agreement for 32 acres of land in
Metro Vancouver. We broke ground on Phase 1 in April and
construction is underway on a 50,000 sq. ft. state-of-the-art,
purpose built cultivation space that is expected to support the
production of at least 5,000 kg cannabis flower per annum. As
an already-licensed producer, we expect to rapidly advance through
the new licensing process and have product ready for sale ahead of
the anticipated non-therapeutic adult-use market, with first
harvest expected in the first half of 2018.
Joint Venture with Village Farms: On June
6th we announced a transformational joint venture
(JV) with Village Farms Inc., one of North America's largest vertically integrated
greenhouse growers. Village Farms has contributed a 1.1 million sq.
ft. operating greenhouse facility which is currently configured to
produce tomatoes (with the option for the JV to acquire a total of
4.8 million sq. ft.) while we will contribute $20 million in funding. The transaction combines
decades of industrial-scale greenhouse growing experience and
well-established, optimized management systems with Emerald's
regulatory, technical and science-based experience. We believe that
converting an existing facility will greatly accelerate the
execution of our go-to-market strategy as we prepare for the
adult-use market, while considerably reducing operational scaling
risk. We've begun the application process to obtain a Health Canada
license for a portion of the initial 1.1 million sq. ft. greenhouse
(estimated to yield more than 75,000 kg per annum once full
production capacity is achieved) and have commenced converting part
of the greenhouse for cannabis cultivation. We foresee applying for
a production license in the fall, providing ample time to ramp
production and seek a sales license ahead of legalization of the
adult-use market.
Advancing Cannabis Science
Through a research program supported by a contribution from the
National Research Council of
Canada's Industrial Research
Assistance Program (IRAP), Emerald has characterized a rich
collection of cannabis strains from its extensive genetic library,
creating a strong base for its ongoing product development efforts
to serve varying client preferences. From its collection of
cannabis seeds, the Company selected a number of unique strains
with a high CBD level and high CBD ratio, as well as other
desirable cannabinoids and terpene profiles. These strains
allowed us to provide cannabis oils with the highest CBD potency in
Canada. CBD is a primary constituent of cannabis that
anecdotally and in initial clinical studies by third parties has
displayed medical benefit, without being psychoactive.
Additionally, Emerald was one of the first Licensed Producers to
provide THCA oils. THCA is the native constituent of cannabis
plants that is the precursor to THC. While both THCA and THC have
been reported to provide analgesic effects, THCA is
non-psychoactive.
More recently Emerald announced the formation of an Advisory
Board that will provide strategic guidance to the company as it
continues product and market development, pushes forward in
developing pharmaceutical formulations, and conducts observational
studies and clinical trials. We have started our research through
data collection from patients using our cannabis oils, and plan to
commence prospectively designed clinical trials later this
year.
Focusing on Downstream Product Development
The extract-based market continues to rapidly grow and is
expected to be a meaningful part of the adult use market. Emerald
believes that beyond simple extraction, pharmaceutical-quality
formulations supported by clinical R&D will be the next
evolution in the medical cannabis market. Such formulations are
able to offer repeatedly predictable, consistent dosing and other
characteristics desired by the medical community. We believe that
achieving such attributes represents an important opportunity and
necessity in developing a valuable portfolio of intellectual
property that will strengthen the company's position as a
recognizable and valued medical brand in Canada and may lead to future international
opportunities.
Emerald already has extraction-based products serving the
medical market but important steps are necessary to achieve
industrial-scale extraction and the processing capability and
quality benchmark for pharmaceutical-quality formulations. Emerald
undertook a vital first step by forming its JV with Village Farms,
which will optimize raw material supply and cost for downstream
extraction-based product development. We are also taking steps
toward scaling extraction and other processes to meet the demand
and product criteria for future medical and non-medical
extraction-based products.
Expanding Distribution Channels
Our end vision is for Emerald to be a leading Canadian supplier
of both branded and wholesale cannabis products. Emerald has the
systems in place to support clients nationwide and has sales across
the country, with an excellent customer service record. With
significantly expanded consumer demand expected in conjunction with
legalization of the adult-use market in 2018, Emerald is working
toward multi-channel distribution to fully support the eminent
production position we are striving for with our internal and joint
venture capacity expansion as well as our product development
initiatives.
Join us on our journey of making lives better through
cannabis science.
Emerald Health Therapeutics Inc.
Emerald Health Therapeutics, Inc. (TSXV: EMH; OTCQX:TBQBF)
operates primarily through Emerald Health Botanicals Inc.
("Botanicals"), a wholly owned subsidiary of the Company and a
Licensed Producer under the Access to Cannabis for Medical Purposes
Regulations (the "ACMPR"). Botanicals is authorized to produce and
sell both dried medical cannabis flowers and medical cannabis oils
in Canada. Botanicals currently
operates an indoor facility in Victoria,
British Columbia, with plans for expansion on a 32-acre
property in Metro Vancouver and a joint venture with Village Farms
utilizing 25 acres of greenhouse complex in Delta, BC. Botanicals is one of Canada's most medically focused licensed
producers, with a team of highly qualified management experienced
in pharmaceutical drug discovery, development and distribution.
Emerald's vision is to be a leading provider of cannabis products
through its production capabilities, proprietary genetics and
intellectual property, value-added products and branding, and
superb customer experience.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Statements Regarding Forward Looking
Information
Certain statements in this press release constitute
forward-looking statements, within the meaning of applicable
securities laws. All statements that are not historical
facts, including without limitation, statements regarding future
estimates, plans, programs, forecasts, projections, objectives,
assumptions, expectations or beliefs of future performance, are
"forward-looking statements".
We caution you that such "forward-looking statements" involve
known and unknown risks and uncertainties that could cause actual
and future events to differ materially from those anticipated in
such statements.
Forward-looking statements include, but are not limited to,
statements with respect to legalization of non-therapeutic cannabis
sales in Canada; participation in
the legalized non-therapeutic cannabis industry; growth in the
extract-based market; increased production of cannabis; commercial
operations; construction or conversion of production facilities;
applications for licensing; obtaining such licenses; commencement
of production of cannabis at the Company's facilities; estimates of
production capacity at such facilities; contributions of cash to
the JV; international opportunities for the Company; commencement
of clinical trials; the Company becoming a leading Canadian
supplier of cannabis products; expected timing of any of the above
matters; and other information that is based on forecasts of future
results, estimates of amounts not yet determinable and assumptions
of management.
Emerald Health Therapeutics Inc. does not intend, and does
not assume any obligation, to update these forward-looking
statements except as required by law. These forward-looking
statements involve risks and uncertainties relating to, among other
things, failure of the federal government to approve legislation
legalizing sales of non-therapeutic adult-use cannabis; failure to
obtain Health Canada and other regulatory approvals; failure to
obtain necessary financing; results of production and sale
activities; the Company's historical experience with medical
marijuana operations; results of scientific research; uninsured
risks; regulatory changes; difficulties in construction or in
obtaining qualified contractors to complete construction or
conversion of facilities; availability of production facilities;
timeliness of government approvals and the granting of permits and
licenses; changes in prices and costs; actual operating and
financial performance of facilities; equipment and processes
relative to specifications and expectations; as well as the other
risk factors set out in the Company's annual information form and
other filing with the applicable Canadian securities regulators,
which may be viewed at www.sedar.com. Actual results may differ
materially from those expressed or implied by such forward-looking
statements.
SOURCE Emerald Health Therapeutics, Inc.