Emblem Corp. Archives - Green Market Report

Debra BorchardtDebra BorchardtAugust 22, 2018


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.

Looking Ahead

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.”


Debra BorchardtDebra BorchardtMay 29, 2018


Emblem Corp. (EMMBF) reported that its revenues for the three months ended March 31, 2018, increased 41% to $1,277,000 in Q1 2018 from $903,000 in Q1 2017. Gross profits increased 304% to $182,000 compared to a gross loss of $89,000 for the same time period in the previous year. The profits were helped by a higher unrealized gain on changes in fair value of biological assets.

During the first quarter, revenues of dried cannabis flower purchased by registered medical patients and Licensed Producers amounted to $457,000 and $394,000, respectively. The average selling price of dried flower for medical patients was $8.59 per gram versus last year’s $8.41 per gram. Total dried flower sold to licensed producers sold at an average selling price of $5.55 per gram versus last year’s $4.02 per gram.

“Along with record sales and registered patient counts, our first quarter progressed rapidly in all areas as we focused on executing against our multi-year plan,” stated Nick Dean, President & CEO of Emblem Corp. He added, “We’ve been incredibly pleased with the quarter over quarter growth of our patient acquisition efforts as a result of our new seven-person sales team, working in parallel with GrowWise.”

Emblem now has 2,950 registered patients as of March 31 and purchased the remaining 50% of GrowWise Health during the first quarter. It also signed a key supplier agreement to become a medical cannabis supplier to Shoppers Drug Mart Inc. The company also increased its cash balance to $83.8 million after doing a $53.8 million financing.

Since Q1 Ended

Since the quarter ended, Emblem has invested in Fire & Flower Inc. and entered into 3-year preferred supplier agreement. It continues to increase the patient count by adding another 22% to roughly 3,600 patients. It has begun its research on oral sustained release formulations in collaboration with Canntab Therapeutics Limited and started to build its inventory as it prepares for the legalization of adult-use recreational cannabis in Canada.

Management Comments

“Our oils now represent close to one-third of our total patient sales.  As we continue to introduce new dose-controlled formats and sizes to the market, we expect this trend will continue upward,” said Dean. “We significantly strengthened our balance sheet and initiated plans to increase our annual capacity 10-fold to 17,000kg to serve the domestic and international medical markets, as well as the pending adult-use recreational markets. Reach and end-user access in these markets was enhanced through channel partners, provincial government applications, and key supplier agreements including Shoppers Drug Mart and Fire & Flower. Commencement of R&D activities for our oral sprays, gel capsules, and sustained release formulations position us to deliver leading dosage precision formats and consistent user-experiences.”

Stock Performance

The stock was lately trading at $1.17 on the OTC Markets down from its 52-week high of $2.21 and C$1.48 on the Toronto Venture Exchange, down from its year high of C$2.28.



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