Emerald Health Signs MoU with BCLDB, Stock Moves Higher One Day Later

When the BC Liquor Distribution Branch chose 31 companies to supply BC with cannabis, Emerald Health Therapeutics was not one of them, which caused the stock to plunge for two consecutive days on the market. But this week, things have changed. Now, Emerald Health signs MoU with BC Liquor Distribution Branch (BCLDB), and the stock is back in the green!

Emerald Health Signs MoU with BC Liquor Distribution Branch

On Tuesday, July 24th, Emerald Health announced that it signed a Memorandum of Understanding with BCLDB. Under the terms of this MoU, Emerald Health will provide quality cannabis products to the Distribution Branch. The BCLDB will then serve these products to the BC adult-use cannabis market.

Important Numbers to Know:

The initial MoU references 1,086 kg of cannabis-based products
Now, Emerald is allowing for roughly 13,000 kg over the next year and a half

Speaking on the matter, Chris Wagner, CEO of the Victoria-based company, said that they have been talking with the BCLDB for a while. Wagner then added that the company opted to wait before agreeing to an MoU. Why? So Emerald could attain appropriate pricing.

Emerald Health Speaks

Emerald Health is striving to become a "key cannabis supplier in the province" of British Columbia, said Wagner. So working with the BC government is a "cornerstone" of the company's "nationwide distribution and sales strategy."

Instead of jumping into as many supply agreements as it can, Wagner explained, Emerald Health is focusing more on making sure that it achieves "terms that provide the best long-term return" for the company and EMH shareholders.