EMHTF stock is one of the strongest performing stocks on the marijuana index today. At the time of writing, shares are up over 16% and are selling for $2.96 USD on the OTCQX. What is going on at Emerald Health Therapeutics (TSXV:EMH) (OTCQX:EMHTF) to cause the bull run?
Emerald Health Therapeutics
Shares began to climb on February 19th in anticipation of the company’s February 20th press release, which we covered yesterday. On the news, EMHTF stock soared, packing on over 10% in a 24-hour period. Today that momentum continues as Emerald Health Therapeutics is up another 16% at the time of writing.
Emerald Health Therapeutics and Verdélite
The news that started the buzz was the launch of Emerald’s new 88,000 sq. ft. “state-of-the-art, fully-integrated indoor facility, and Verdélite brand in Québec.”
Not only will the expansion increase capacity but the new Verdélite brand to go with it also looks promising. Verdélite produces high-grade dried cannabis for the recreational and medical cannabis market in Canada. It brings to the table roughly 200 strains of high-quality cannabis.
Emerald Health Therapeutics Growth
According to Seeking Alpha: “Emerald is growing at a high pace not only organically, but also through acquisitions.” One of its largest acquisitions was the Agro-Biotech Inc takeover that occurred in May 2018. Emerald paid $90 million CAD for the company and subsequently turned it into its new Verdélite brand.
Growing from 25,000 sq. ft. at the time of acquisition, the new facility adds an additional 63,000 sq. ft., 50,000 sq. ft. of which is allocated to “cannabis flowering capacity in precision-controlled environments.”
Emerald Health Therapeutics reported a massive revenue growth of 48% for the nine months ended in September 2018. Further, “the company benefited from an increase in the value of biological assets in 2018. As a result, the gross profit margin reported was CAD 1.16 million.”
The new facility in Quebec and the new Verdélite brand have investors excited for the future potential here. 2019 will be very telling if Emerald can take these acquisitions and report even bigger revenue growth. It has spent a lot of money on expansion plans, and if investors hold tight, the rewards may well be ahead.
Featured Image: Canva