EMHTF Stock Soaring Over 22%: What’s Happening with Emerald?

EMHTF stock

EMHTF stock is an eye-catcher at present. It’s understandable, considering it’s climbing a whopping 23% at present and currently trading for $2.30 CAD on the TSXV. Emerald Health Therapeutics (TSXV:EMH) (OTCQX:EMHTF) is based in Victoria, Canada. The company’s 50% owned joint venture Pure Sunfarms is the reason for the skyrocketing shares.

Here’s what’s going on.

EMHTF Stock Skyrocketing

It is not an everyday occurrence on the marijuana index that a company experiences 22% gains in a 24-hour period. So you can bet that when it does happen, everyone is watching.

Yesterday, Emerald Health Therapeutics provided preliminary, unaudited financial results for Q2 2019 for its British Columbia-based Pure Sunfarms subsidiary. The highlights speak for themselves:

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  • Sales increased sequentially 125% to $32 million CAD
  • Net income exceeded $34 million
  • A third consecutive quarter of profitability
  • EBITDA was $25 million, resulting in an EBITDA margin of approximately 78%

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Interestingly the company showed how it is capable of producing cannabis at an industry-leading low price of only $0.65 per gram. Further, the venture sold “approximately 8,000 kg of cannabis in the second quarter and approximately 12,000 kg for the first half of the year.”

Now, EMHTF stock is soaring, and the upswing looks set to continue.

Pure Sunfarms

As stated, Pure Sunfarms is a 50/50 split joint venture. The other company is the partnership is Village Farms International (TSX:VFF) (NASDAQ:VFF)—which also experienced significant gains this week off the back of its total Q2 2019 financial report.

The venture aims to produce large-scale, low-cost, and high-quality cannabis. Thus far, it is delivering on its aim.

According to Dr. Avtar Dhillon, Executive Chairman and President of Emerald Health Therapeutics, the production quality, cost, and yield continues to “exceed our initial goals,” and the entire venture is proving to be a “tremendously valuable asset.”

Emerald Health Therapeutics has a market cap of only $323 million CAD. Village Farms is nearly double that size but remains a low-mid tiered player in the cannabis market comparative to its peers. For their combined size, the expected output of Pure Sunfarms is impressive, and something investors should consider when considering EMHTF stock.

>> Read More Emerald News

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