Emerald Health Therapeutics expects Q1 2019 revenues at its Pure Sunfarms joint venture to exceed $14 million.\r\n\r\nThe firm teamed up with tomato producer Village Farms International to create Pure Sunfarns, a sprawling greenhouse in British Columbia. They each own 50% of the facility and Emerald reported that its share earned it $1.4 million in Q4 2018.\r\n\r\nHowever, its production capacity is rapidly expanding and it will be able to produce 75,000kg of cannabis flower per year by mid-2019. Last month it announced plans to\u00a0double production capacity, which will see its output increase to 150,000kg per year and make it a major player in the Canadian cultivation trade.\r\n\r\nIt is yielding more cannabis each quarter and Emerald said its revenue shot up in Q1 and will continue spiralling. \u201cPure Sunfarms\u2019 1.1 million square foot facility is now rapidly increasing production and sales,\u201d said Avtar Dhillon, who is managing director, president and executive chairman at Emerald. \u201cBy leveraging our own technical expertise and infrastructure with strong partners in 2018, we solidified key building blocks with respect to production\/supply, distribution, processing in the form of large-scale extraction, softgel encapsulation, and product innovation.\u201d\r\nVerd\u00e9lite Update\r\nEmerald reported a net loss of $13.9 million in Q4 2018 as a result of investment in expanding its capacity. That brought its annual loss for 2018 up to $31 million, with revenue of slightly more than $2 million, although the bulk of that came in Q4. It also brought in $6.4 million from its share of Pure Sunfarms.\r\n\r\nThe firm also owns 51% of Emerald Health Naturals, which will begin to sell non-cannabis natural health products for endocannabinoid systems across Canada by mid-2019. It has bought an additional production facility in Quebec called Verd\u00e9lite, and it has just announced that the vendor has elected to receive $7.5 million of the final $22.5 million payment it is due in the form of common shares in Emerald, at a discounted 10% price.\r\nThe Jewel in Emerald's Crown\r\n\r\n\r\nHowever, Pure Sunfarms is its most important operation and Emerald said it is approaching its target of achieving all-in production costs below $1 per gram. Bulk cannabis currently sells for more than $7 per gram in Canada, leaving Emerald and Village Farms with a significant margin.\r\n\r\nIn March Emerald tied up supply deals with Alberta Gaming, Liquor and Cannabis and the Saskatchewan Liquor and Gaming Authority, adding to existing sales arrangements in Ontario, British Columbia, and Newfoundland and Labrador.\r\n\r\nShares in Emerald opened $3.68 on Wednesday, May 1, after announcing its results. That is a significant decrease on the $3.92 it closed at on Tuesday, Apr. 30, although it is still well ahead of the $2.20 it dipped to on Dec. 27, 2018.\r\n\r\nVillage Farms came under fire from Citron Research a fortnight ago and that sent its stock tumbling from $17.25 to $13.99 in just an hour on Apr. 17. However, it has since recovered most of that decrease and it opened at $16.66 today.\r\n\r\nEmerald promised \u201ca year of extraordinary sales growth\u201d in 2019 and Village Farms should also see revenues increase sequentially as Pure Sunfarms continues to yield more low-cost marijuana.