Emerald Health Therapeutics, Inc. (EMHTF) reported its annual 2017 earnings and fourth quarter results. Revenue for the full year increased 270% from C$253,321 in 2016 to C$937,654 in 2017. Net losses for the year also increased from (C$2.9 million) in 2016 to (C$8.7 million) in 2017. The net loss per share went from five cents in 2016 to a net loss per share of ten cents in 2017.
“Following the Canadian federal government’s introduction in April 2017 of legislation to broadly legalize adult-use cannabis, Emerald put in motion multiple strategic steps focused on placing the company in the top tier of Canadian licensed producers and pursuing international opportunities,” said Chris Wagner, CEO of Emerald Health Therapeutics. “The company made important leadership hires; took steps to assure significant, secure supply of cannabis via large-capacity production facilities; struck multiple strategic collaborations and investments; leveraged its extensive life science industry expertise to initiate product innovation and intellectual property formation; and added substantially to its treasury.”
Revenue for the fourth quarter of 2017 was C$279,362 versus C$124,251 in 2016 for the same time period. The net loss for the fourth quarter was (C$4 million) versus a net loss of (C$880,424) for the same time period in 2016.
The company is in the throes of a building phase. According to a statement, Emerald said that conversion of the first 250,000 ft2 section of the Delta 3 greenhouse to cannabis production was substantially complete, with the conversion of the remainder of the 1.1 million ft2 greenhouses ongoing and on schedule. The company also said that senior growing, financial, human resources and operational personnel, including the established team transferred from Village Farms, were in place for production ramp-up.
In addition to the Delta 3 greenhouse conversion project, Emerald has completed a significant amount of construction at its Metro Vancouver site and in October 2017 applied to Health Canada to produce cannabis at this facility.
Emerald has also signed deals with DMG Blockchain to form a joint venture, to be named CannaChain Technologies, to develop a blockchain-based supply chain management system and e-commerce marketplace for the legal cannabis industry. Plus, it signed a Letter Of Intent with Namaste Technologies to collaborate on strategic business opportunities worldwide and develop a fully integrated e-commerce platform to serve as a retail channel for the Company’s patient
Wagner added, “We look forward to a transformational year in 2018 with the expected initiation of broad legalized adult-use and our vaulting into the top tier of production capacity, enhanced branding, sophisticated sales and marketing, and progression of our medical product development and patenting plans. We are executing well on the projects we have announced and are assessing an array of potentially impactful new business opportunities.”