Emerald’s Verdélite Facility Granted Approval for Expansion

Emerald Health Therapeutics [stock_market_widget type="inline" template="generic" color="default" assets="EMH.V" markup="(TSXV: {symbol} {currency_symbol}{price} ({change_pct}))" api="yf"] has gained Health Canada approval to expand its production facility in Quebec from four grow rooms to 21.

This amendment means that the entire 88,000 sq. ft. indoor space at its Verdélite facility in St. Eustache is now licensed for cultivation and processing. The expanded facility should be fully planted in eight weeks, allowing it to ramp up sales of Verdélite brands to provincial and territorial wholesalers and private retailers across Canada.

“This new license amendment allows Verdélite to transition into its full commercial phase and positions Verdélite as a key growth contributor to Emerald’s financial results in 2020,” said Emerald chief executive Riaz Bandali.

Verdélite is a relatively small craft cannabis production facility. Emerald has a 50% stake in a far larger facility called Pure Sunfarms, which is based in British Columbia.

This summer it reached its full annualized production run-rate of 75,000 kg of cannabis and that capacity is set to double to 150,00 kg by 2021. Village Farms International, Inc. (TSX: VFF) owns the remaining 50% of the JV.

The facility has built up its business wholesaling bulk cannabis to Canadian licensed producers, but it gained approval to begin selling cannabis directly to provincial and territorial distributors across the country last month.

It quickly began shipping its products to the Ontario Cannabis Retail Corporation and it has now completed its first shipment to the British Columbia Liquor Distribution Branch. That means its products are now available to more than half of Canada’s population, and the team at Pure Sunfarms will work to tie up more deals with distributors and retailers going forward.

Village Sunfarms said the team is advancing discussions with other potential buyers. Both Emerald and Village Sunfarms saw their share prices increase when trading opened this morning as a result of the news.

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Martin Green
Martin Green is an experienced journalist with a strong focus on the cannabis, alcohol, and gambling industries. He is particularly interested in the political issues affecting the global marijuana trade, and he has a keen focus on regulation changes and legal topics. He holds a BA English Literature, MA Creative Writing and a National Qualification in Journalism diploma. He has worked in journalism since 2009 and written for a broad range of newspapers, business titles and magazines, including The Sun, The Metro, The Journal, Livestrong, Drinks Retailing News, Harpers, Sportsbook Review, Vital Football, Essex Live and Surrey Live. Address: 682 Indian Road, Toronto, Ontario, M6P 2C9. Phone: 416-721-8257.
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