Emblem Corp Stock (TSXV: EMC) (OTCQX: EMMBF) - Investor Dashboard


➔ Emblem Corp.
TSX Venture Exchange: EMC
OTC Ticker: EMMBF
Sector: Healthcare
Industry: Legal Cannabis
Country: Canada
Employees: 103 (10/16/18)
Established: 2013
CEO: Nick Dean

Summary

Fiscal Year-End: December
Facilities:  1
Dried Flower: Production and Sale
Extracts: Production and Sale
Number of Patients: 5,000+ as of 10/12/18
Headquarters: Toronto, Ontario

Financials 06/30/18

Cash on hand: $73.4mm
Fixed Investment: $34.7mm
Shareholders’ Equity: $89.6mm
Revenues – Last Quarter: $1.5mm
Adj. Gross Margin : -65.5%
EPS : -.04

Capital Structure (08/22/18)

Last Financing:  14mm units at $2.05
Basic Shares: 120.2mm
Warrants: 52.1mm
Options: 5.8mm
Diluted Shares: 189.0mm

Company Brief

Emblem Corp. is a fully integrated cannabis company focused on driving shareholder value through product innovation, brand relevance, and access to patient and consumer channels. Through its wholly-owned subsidiary Emblem Cannabis Corporation, Emblem is licensed to cultivate, process, and sell cannabis and cannabis derivatives in Canada under the Cannabis Act. Emblem’s state-of-the-art indoor cannabis cultivation facility and Product Innovation Centre is located in Paris, Ontario. Emblem is also the parent company of GrowWise Health Limited, one of Canada’s leading cannabis education services.

The Company has a clear strategy for delivering shareholder value: unlimited capacity through supply agreements, a focus high-margin derivative products, multi-channel distribution, and brand power.

In September 2018, Emblem made a groundbreaking strategic pivot when it signed what is believed to be the industry’s largest supply agreement with Aphria. Emblem will receive 175,000 kilograms of high-quality cannabis over a five-year period commencing on May 1, 2019. With zero cultivation risk, Emblem can focus its resources on developing and distributing high-margin, value-added cannabis derivatives.

In October 2018, the Company announced the launching of a joint venture with Acnos Pharma, a German pharmaceutical wholesaler with access to approximately 20,000 pharmacies in Germany. The JV – 60% owned by Emblem and 40% owned by Acnos – will allow Emblem to commence exporting its products to Germany, with first deliveries expected to be made in mid-2019.

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Highlights

  • Multi-pronged strategy focused on product innovation; building brands that resonate with patients, healthcare professionals, and consumers; and distribution; built on the foundation of unlimited capacity potential
  • Patient count has more than doubled in 2018
  • Strong management team with executives from a variety of backgrounds including healthcare, pharmaceutical, beverage, marketing and branding, and manufacturing
  • 30,000 square-foot Product Innovation Centre featuring a 5,000 square-foot formulation and analytical services laboratory, built to GMP standard for international export and expected to be online in Q1 2019
  • Launched its first adult-use brand Symbl, with more brands in the pipeline
  • One of only a few producers in Canada to deliver 100% of its commitments to provincial agencies for adult-use retail while still maintaining full inventory for registered patients

Growth Strategy

  • Focus on key growth drivers including medical, new products, recreational, and international
  • Unique pharmaceutical formulations including gel caps, oral sprays, and pills
  • Development of new products including beverages, edibles, vape pens, topicals, and concentrates
  • Four oils launched in December 2017
  • Patient acquisition through GrowWise Health clinics
  • Five-year supply agreement to distribute Emblem brands through Compass Cannabis Clinic’s Starbuds Canada
  • Launched Atmosphere, an oral dose-metered spray
  • Acnos Pharma joint venture to bring medical products to Germany in 2019
  • Four oils launched in December 2017 and “Atmosphere” oral sprays launched in September 2018

Differentiators

  • In-house patient education provider in 50%-owned GrowWise Health
  • Pharmaceutical division headed by John Stewart, former CEO of Purdue Pharma
  • Exclusive agreement with CannTab to develop cannabinoid-based oral sustained release formulation
  • Supply agreements with Shoppers Drug Mart, Fire & Flower, and Starbuds Canada
  • Supply agreements with Alberta, British Columbia, Ontario, and Saskatchewan
  • 5-year wholesale agreement to purchase up to 175,000 kilograms of cannabis products from Aphria
  • Partnership to develop CBD health and beauty products with GreenSpace Brands
  • Pharmaceutical division established by John Stewart, former CEO of Purdue Pharma, now led by Wayne Kreppner

Institutional Analyst Coverage

GRAEME KREINDLER
VIII Capital

MARTIN LANDRY
GMP Securities

JASON ZANDBERG
PI Financial
RESEARCH REPORT


Curated Stories & News


Visit Emblem Corp.,
at www.emblemcannabis.com.

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