Emblem Invests in Natura Naturals—Will This Help Emblem Thrive When Cannabis is Legalized?

Emblem invests in Natura Naturals

In three months, give or take, recreational cannabis use will be legal in Canada. Sure, that's still pretty far away, but that's not stopping cannabis companies from preparing. For example, Emblem invests in Natura Naturals.

Emblem Corp recognizes that entering into partnerships is necessary to be prosperous in the cannabis market, but so is increasing product volume so that it can be a lead producer when the drug becomes legal. Thus, the investment.

Emblem Invests in Natura Naturals

This investment is going to do wonders for both companies. At least, that's what is forecasted—who knows, though; the cannabis market is a volatile place.

Regardless, don't think of the what ifs, think only of what's known. And what's known, thanks to today's announcement, is that Emblem Corp. is making a strategic equity investment in Natura Naturals, an Ontario-based cannabis company.

We also know that Emblem will be investing $3M in Natura (in cash) for more than 3M common shares of the company (3,750,000, to be exact).

After the deal is over, Emblem will, on a non-diluted basis, own roughly 5% of Natura's outstanding shares. On a fully diluted basis, Emblem will own 7%.

Companies Speak on the Emblem Natura Naturals Investment

Both Emblem and Natura Naturals are looking forward to what this investment will bring.

For Natura Naturals, the Ontario-based company said they are "extremely excited" about what the Emblem Natura Naturals investment "holds for us."

Emblem shared similar thoughts, saying the partnership with Natura will not only "quickly accelerate [the company's] time to market," but will also increase product volume, which will help with supporting the company's "medical and adult-use demand."

Emblem Stock Price (TSXV:EMC)

How is the market reacting to the Emblem Natura Naturals investment? Well, let's see, shall we?

According to Yahoo Finance, as of 2:11 p.m. EDT, Emblem was trading at $1.21, which puts the stock up 2.54%.

The Takeaway

What do you think of the Emblem Natura Naturals investment? Does this give Emblem a competitive edge in the steadily increasing Canadian cannabis industry?

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