Emblem Corp. (EMMBF) reported its fiscal 2017 results for the fiscal 2017 year with C$2.69 million in revenues versus C$277,000 in 2016 an increase of 873%. The company reported gross profits of C$490,000 versus a loss of C$260,000 in 2016. Emblem expects to generate a steady increase in gross profit during 2018 as it now has a total of five grow rooms completed and received a license in late 2017 for the sale of cannabis oil.
Still, the company delivered a loss per share of 14 cents, but this was an improvement over 2016’s loss per share of 44 cents. The net loss for 2017 was C$12.1 million, but this was lower than 2016’s net loss of C$17.3 million.
The company said in a statement that revenues of $1,740,000 were generated from dried flower sales to registered medical patients and $362,000 from sales to other licensed producers. The average selling price of total product sold to medical patients during 2017 was $8.24 per gram which was higher than 2016’s $7.01 per gram. Emblem received its license to sell cannabis oil during late 2017 and generated revenue from cannabis oil products of $18,000. During 2017, GrowWise Health Limited generated education fee revenue from other licensed producers of $514,000.
“2017 marked a transformational year for Emblem, as it achieved many milestones against product development (oils license received in Q4) and cultivation expansion. We are incredibly encouraged by the growth achieved through our patient acquisition efforts, the strategic partnerships formed with both Dosecann and Canntab, which position Emblem as a leader in product innovation, and the professional leadership team we began to assemble,” said Nick Dean, Chief Executive Officer and President of Emblem. “The revenue and gross profit achieved in 2017 is a testament that Emblem is building a company focused on achieving fundamental business objectives that will drive long-term value for our shareholders.”
Emblem said that in the first quarter of 2018 the company had already generated record revenues of C$1.2 million and increased the patient count by roughly 3,300 patients. The company signed an agreement to become a medical cannabis supplier to Shoppers Drug Mart Inc. and entered into a 3-year preferred supplier agreement with Fire & Flower Inc., a company it invested in as well. In addition to those items, Emblem raised C$53.8 million. in equity and debt financings. The company has a cash balance of approximately $80 million available to support its growth plans for 2018.
Three analysts cover Emblem according to Yahoo Finance with an average target price of C$2.19. There were two buy ratings and one hold rating. The stock trading on the Canadian Exchange was lately selling at C$1.50 and the stock trading on the OTC Markets was lately selling at $1.15, down from its 52-week high of $2.21.