Emerald Health Therapeutics Updates on its Differentiated Strategy and Progress
July 12 2018 - 11:15AM
Emerald Health Therapeutics, Inc. (TSXV:EMH) (OTCQX:EMHTF)
(Emerald) is providing an update on its differentiated strategy to
excel in the growing cannabis industry.
“In Emerald’s view, the most compelling
opportunities and growth in the cannabis industry will arise in
serving the unmet needs of individuals seeking medicinal and
wellness benefits. We also have evidence that adults using cannabis
for purely recreational benefits desire products with predictable
characteristics. Our vision is to enable both medicinal and
recreational users to ‘consume with confidence,’” said Chris
Wagner, CEO of Emerald.
“Our expectation of being in this business is to
develop unique, protected products that are preferred by consumers,
command high margins, and achieve attractive profit for the company
and its shareholders. Our seasoned team, having cumulatively spent
hundreds of years in medicine, pharmaceutical development and
sales, biotechnology R&D and clinical development, as well as
natural health product development, knows how to run the marathon
of developing high quality products based on the processes, tools,
and quality standards of the life sciences industry. Critically, we
also have tremendous consumer sales and marketing expertise,
know-how to position and brand products, and are adept at
navigating the ins and outs of dealing with large buyers.”
Emerald’s business plan is based on three
pillars:
- Product Innovation: Our focus is to conceive
and patent novel ideas, license or develop proprietary products,
and display thoughtful leadership to position these products to the
marketplace. These products may be protected by unique
formulations, delivery methods, and applications. Even our
recreational products, often based on unique cannabis strains, will
benefit from our focus on delivering predictable doses and more
sophisticated delivery methods. These initiatives will be
confidential until appropriate turning points, but we have filed
for patents and are making great strides toward human studies. The
dealer license held by Northern Vine Labs, in which we own a
majority stake, provides valuable latitude to enable an array of
research and product development initiatives.
- Branding & Sales: Executive Vice President
of Sales, Marketing, and Operations, Paul Dillman is well-versed in
international consumer product marketing and complemented by an
expert internal team as well as the acclaimed branding and
advertising agency, DDB Canada. We are composing a highly creative
campaign that will uniquely and strongly position Emerald products
in the marketplace. We will initiate our communication around this
product line in August. We have been in frequent and active
discussions with all the provincial cannabis distribution agencies
across Canada, and have had multiple tours of high-level executives
of these agencies to allow them to see first-hand the magnitude and
quality of our production capabilities. Our analysis and strategy
is based on the reality that demand will clearly outweigh supply in
the near-term. We have excellent relationships with the provincial
distributors and are very well-positioned to engage in supply
agreements. We do believe that sales growth under the existing
medical framework represents an attractively high margin and
preferable sales channel. While the initial awards of supply
agreements do represent tangible evidence of a relationship, we are
confident in our marketing strategy and we have elected to defer
the formalization of these types of agreements.
We are taking a powerful strategic step to launch the
non-cannabis Endo product line into natural health product,
grocery, and pharmacy retail channels across Canada. With our
first-hand learning that six of 10 cannabis users are also natural
health product users, we are motivated by this unique opportunity
to sell non-cannabis products that, like cannabis products, affect
the endocannabinoid system, are complementary to our cannabis
product line, and create an avenue for very proactive, widespread
advertising that is not allowable for cannabis based products.
Cross-branding is a marketer’s delight. Our branding for this
product line will be powerful and pervasive.
- Production and Raw Material Sourcing: While we
avoided risking investor capital prior to the Canadian government’s
proclamation in April 2017 about cannabis legalization plan, we
moved quickly to consummate a unique production joint venture with
one of the largest, most experienced growers of plants in
greenhouses in North America, Village Farms International. In
creating the joint venture (JV), Pure Sunfarms, we did not just
want a structure of glass and metal, we wanted the opportunity to
combine and share our deep knowledge of cannabis and cannabis
growing with Village Farms’ deep knowledge of growing plants in
very large greenhouses. This JV has resulted in an optimal design
and implementation of a world-class cannabis growing facility. We
have completed and have our cultivation license for one quarter of
the 1.1 million square feet. We are in commercial production and
will be harvesting and inventorying product for the October 17
legal adult-use launch date. We have had a positive experience with
Health Canada and believe that with our track record and our high
standards in our operations we will receive our sales license for
Pure Sunfarms in a timely manner.We have also not only gained an
expanded and differentiated 75,000 square foot indoor production
capability but also exposure to a new market – the second largest
in Canada – with our acquisition of Agro-Biotech in Quebec.Based on
our view of the market and our business strategy, we will be agile
and will ensure that we have access to all potential sources of
cannabis raw material that will assure suitable quality and
low-cost inputs for the value-added, downstream products we are
working to develop. These sources may involve outdoor growing in
Canada and could also involve sourcing dried flower or extracted
product from other global sources. The sourcing of non-dried-flower
raw material (e.g. oils) from international sources would also be
enhanced by our ownership of a dealer’s license through Northern
Vine Labs.
Emerald’s focus is on great execution and
delivering highly appreciated, high margin products.
About Emerald Health Therapeutics,
Inc.
Emerald Health Therapeutics (TSXV:EMH)
(OTCQX:EMHTF) (Frankfurt:TBD) is a Licensed Producer under Canada’s
Access to Cannabis for Medical Purposes Regulations and produces
and sells dried cannabis and cannabis oil for medical purposes.
Emerald is preparing to serve the fully legalized Canadian
adult-use cannabis market starting October 17, 2018. Emerald owns
50% of Pure Sunfarms, which is converting a licensed existing 1.1
million square foot greenhouse in Delta, BC and is now in
commercial production. It owns Agro-Biotech, a Québec-based
licensed cannabis grower with a 75,000 square foot indoor facility
and is planning to add a 500,000 square foot greenhouse in Metro
Vancouver. Emerald’s team is highly experienced in life sciences,
product development, large-scale agri-business, and marketing, and
is focused on developing value-added cannabis-based products with
potential wellness and medical benefits. Emerald is part of the
Emerald Health group, which is broadly focused on developing
pharmaceutical, botanical, and nutraceutical products that may
provide wellness and medical benefits by interacting with the human
body’s endocannabinoid system.
Please visit www.emeraldhealth.ca for more
information or contact:Rob Hill, Chief Financial Officer(800) 757
3536 Ext. #5
Ray Lagace, Investor Relations Manager(800) 757
3536 Ext. #5invest@emeraldhealth.ca
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 Note Regarding Forward-Looking
Statements: Certain statements made in this press release that are
not historical facts are forward-looking statements and are subject
to important risks, uncertainties and assumptions, both general and
specific, which give rise to the possibility that actual results or
events could differ materially from our expectations expressed in
or implied by such forward-looking statements. Such statements
include legalization of nonmedicinal cannabis; production capacity
of various facilities; expansion of facilities; and anticipated
production costs.
We cannot guarantee that any forward-looking
statement will materialize, and readers are cautioned not to place
undue reliance on these forward-looking statements. These
forward-looking statements involve risks and uncertainties related
to, among other things, failure to obtain regulatory approvals;
failure to obtain necessary financing; results of production and
sale activities; results of scientific research; regulatory
changes; changes in prices and costs of inputs; demand for labour;
demand for products; as well as the risk factors described in the
Company’s annual information form and other regulatory filings. The
forward-looking statements contained in this press release
represent our expectations as of the date hereof. Forward-looking
statements are presented for the purpose of providing information
about management's current expectations and plans and allowing
investors and others to obtain a better understanding of our
anticipated operating environment. Readers are cautioned that such
information may not be appropriate for other purposes. The Company
undertakes no obligations to update or revise such statements to
reflect new circumstances or unanticipated events as they occur,
unless required by applicable law.
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