Emerald Health Therapeutics, Inc.
The Vancouver-based cannabis producer reported a net loss of $3.7 million in Q1, but it improved to just $500,000 in the three months to June 30, 2019. Revenue almost doubled on a sequential basis, while it also represented a 348% rise on Q4 2018.
Emerald attributed the improved performance to championing higher-margin brands such as SYNC 25 CBD, an indica-dominant CBD oil.
Emerald has a 50/50 joint venture with Village Farms International called Pure Sunfarms. The facility reached full annualized run rate of 75,000 kg this summer, and it should double to 150,000 kg in 2020 after a second greenhouse is built out.
The venture saw sales grow to $32.5 million during Q2 2019, as it sold 8,000 kg of cannabis, and that figure should increase significantly going forward.
Emerald’s share from Pure Sunfarms amounted to $14.5 million in Q2, up from $5.8 million in the previous quarter.
Avtar Dhillon, president and executive chairman at Emerald, said Pure Sunfarms is one of the firm’s most valuable assets. “Combining this with the foundation we have built to synchronize and scale every aspect of our business from production to post-harvest processing and product development positions Emerald to see continued financial growth of the company,” he added.
Emerald has another facility in Quebec called Verdélite, but Pure Sunfarms is its most important operation. It has deals to supply provincial and territorial distributors in Alberta, Saskatchewan, Ontario, British Columbia, Manitoba, Quebec, PEI, Yukon, and Newfoundland & Labrador.
The firm overhauled its leadership team in Q2. Riaz Bandali took over as chief executive following 25 years in the life sciences industry, while former L’Oréal, Avon, and British American Tobacco executive Thierry Schmidt took over as chief operating officer.
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