Toronto-based Emblem Corp. (EMMBF) reported second-quarter revenues of $1.5 million for the quarter ending June 30, 2018, an increase of 180% over the same time period in 2017. The company also delivered a gross loss of $159,000 for the quarter versus last year’s zero amount and a let loss of $4.7 million versus last year’s net loss of $2.9 million.
The company said that higher revenues and unrealized gains on changes in fair value of biological assets were offset by rising production costs that had ramped up to meet those rising sales volumes.
“Demand for our medical cannabis products significantly increased period over period, further driven by our oil extracts released at the end of 2017,” said Nick Dean, President & CEO of Emblem Corp. “We have established Emblem as a trusted brand in the medical cannabis space. We are supporting our registered patients with additional cannabinoid oil profiles and new size formats including 30ml bottles, in addition to the original 60ml bottles. In addition, we anticipate launching our new metered-dose controlled oral sprays during the third quarter of 2018.”
According to the company statement, revenues of dried cannabis flower purchased by registered medical patients amounted to $499,000 and $956,000 during the three and six months ended June 30, 2018 (June 30, 2017 – $398,000 and $859,000), respectively. Total dried flower sold to medical patients during the three and six months ended June 30, 2018 amounted to 58.6 kilograms and 111.4 kilograms of dried flower (June 30, 2017 – 53.9 kilograms and 108.6 kilograms), at an average selling price of $8.58 per gram and $8.59 per gram (June 30, 2017 – $8.41 per gram and $7.90 per gram), respectively.
Revenues from cannabis oil products during the three months and six months of 2018 amounted to $320,000 and $507,000 or 39% and 35% of total sales to medical patients, respectively. Prior to December 2017, the Company did not sell cannabis oil products as it did not receive its sales license to sell cannabis products until late 2017.
Since the quarter ended, Emblem has made a $3 million investment into Natura Naturals and plans to acquire the company increasing Emblem’s production capacity to 70,000 kilograms by the end of 2019. The company also embarked on a strategic partnership with GreenSpace Brands Inc. to develop and commercialize cannabidiol infused health and beauty products for the soon to be legal adult-use cannabis market.
Emblem has increased its patient count to roughly 4,430 active registered patients and launch its first adult-use cannabis brand called “Symbl.”
This week, Emblem said that it signed a supply agreement with the Ontario Cannabis Store, and the Alberta Gaming, Liquor, and Cannabis Commission.
Separately, Emblem uplisted its stock to trade on the OTCQX market.
Dean added, “We remain steadfastly focused on executing against our plan and building a sustainable business that will drive long term value for our shareholders. long-term quarter results are a testament to this mission.”