Emerald Health Therapeutics Reports Fourth Quarter and Fiscal 2018 Financial Results; Highlights Sales Growth in Q1 2019
- Emerald’s Q4 sales of
$1.1 millionwas more than triple the prior quarter and year-over year; Q1 2019 sales were $2.6 million. Quebec-based Verdélite subsidiary expected to be in full production in 88,000 square foot indoor facility by mid-2019.
- Supply agreements announced with seven provinces and territories representing over 90% of the Canadian population; delivery fulfillment rates are close to 100%.
- 51%-owned Emerald Health Naturals to sell non-cannabis natural health products for endocannabinoid system across
- BC-based Pure Sunfarms joint venture:
- 4Q18 Sales of
$4.9 million; 1Q19 sales expected to exceed $14 million
- Emerald records
$1.4 millionin 4Q18 as share of income from Pure Sunfarms
- Targeting and approaching all-in production costs below
- Fully planted in 1.1 million square foot greenhouse. On track to reach annualized production run-rate in first greenhouse of 75,000 kg by mid-year.
- Advancing plans to convert a second, nearly identical 1.1 million square foot greenhouse in the same complex. This greenhouse is targeted to complete its first harvest by 2020 and annualized full run rate production of 75,000 kg in Q4 2020.
“In the past year we have worked closely with our 50/50 venture partner to bring into full production one of the single largest cannabis growing assets in the world. Pure Sunfarms’ 1.1 million square foot facility is now rapidly increasing production and sales. By leveraging our own technical expertise and infrastructure with strong partners in 2018, we solidified key building blocks with respect to production/supply, distribution, processing in the form of large-scale extraction, softgel encapsulation, and product innovation,” said
“By further building upon our intellectual property and strategic partnerships, as well as our own internal expertise, we are working hard to increase market penetration through the development of new and differentiated ingestible and non-combustible products if, as expected, they become allowable before the end of 2019. This will coincide with the ongoing and substantial expansion of the adult-use retail system – creating significant opportunity for the Company in 2019 and what we anticipate to be a year of extraordinary sales growth for Emerald.”
Financials Results & Capital Resources
Selected Quarterly Financial Information
The following table summarizes selected financial information for the Company for the last eight quarters, which was derived from annual financial statements prepared in accordance with IFRS or interim financial statements prepared in accordance with IFRS applicable to the preparation of interim financial statements, IAS 34, Interim Financial Reporting:
|Share of income (loss) from JV||1,432,771||3,940,373||682,431||(301,793)|
|Net loss per share (basic and diluted)||(0.10)||(0.05)||(0.04)||(0.04)|
|Share of loss from JV||(44,562)||(278,016)||-||-|
|Net loss per share (basic and diluted)||(0.04)||(0.02)||(0.02)||(0.02)|
The Company’s audited consolidated financial statements can be found on SEDAR. The Company errantly filed an incomplete set of its consolidated financial statements on SEDAR at
During 2018 the Company completed equity financings that resulted in total proceeds from unit issuances and warrant exercises of
Emerald’s financial statements are provided below. The financial statements, management discussion and analysis, and additional information on Emerald are available on SEDAR at www.sedar.com or on the Company’s website.
Production & Sourcing
Pure Sunfarms (PSF), Emerald’s 50%-owned joint venture, completed conversion of its 1.1 million square foot
Subsequent to year end, PSF exercised its option to acquire the nearly identical 1.1 million square foot
Emerald entered into supply agreements with Pure Sunfarms to purchase 40% of production in 2018 and 2019 as well as 25% of total production in 2020 through 2022.
PSF also entered into a supply agreement with the
PSF entered into a credit agreement with Bank of Montréal and
Verdélite is an 88,000 s.f. indoor grow facility in
Cannabis Sales Agreements – Adult-use Markets
The Company completed its first shipments of adult-use cannabis during the fourth quarter of 2018, fulfilling its initial supply scheduling, product and volume commitments in
Phase 1 of the
Emerald entered into a cannabis concentrate program agreement with
Emerald is pursuing research and product development focused on improving the bioavailability of cannabinoids, developing new dosage formats, and targeting core disease states including sleep, anxiety, pain and mood. This product development is also focused on delivering new products with the anticipated expansion of allowable products to include edibles in the recreational market.
In the next months, Emerald is planning the launch through its joint venture, Emerald Health Naturals, the
Emerald is conducting animal studies in preparation for planned clinical trials that may be initiated by year end. These studies are intended to target specific disease indications using Emerald products and will be carried out to support the use of Emerald products for medical use.
Other Strategic Transactions
EHB’s product line consists of nutritional supplements which use non-cannabis, non-psychoactive plant-based ingredients to provide potentially beneficial support to the body’s endocannabinoid system. The Company agreed to invest
To access the audio broadcast, please dial (866) 652-5200, or via the Internet at: https://services.choruscall.com/links/emhtf190501.html. An archived version of the presentation will be available for 90 days on the "Investors" section of Emerald's website: https://ir.emeraldhealth.ca/events-and-presentations.
Emerald is part of the
Please visit www.emeraldhealth.ca for more information or contact:
(800) 757 3536 Ext. #5
Emerald Investor Relations
(800) 757 3536 Ext. #5
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements: Certain statements made in this press release that are not historical facts are forward-looking statements and are subject to important risks, uncertainties and assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking statements. Such statements include production and processing capacity of various facilities; expansion of facilities; legalization of broader spectrum cannabis products; sale of such products; construction and operation of a laboratory; receipt of hemp deliveries; and anticipated production costs.
We cannot guarantee that any forward-looking statement will materialize, and readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements involve risks and uncertainties related to, among other things, changes of law and regulations; changes of government; failure to obtain regulatory approvals; failure to obtain necessary financing; results of production and sale activities; results of scientific research; regulatory changes; changes in prices and costs of inputs; demand for labour; demand for products; failure of counter-parties to perform contractual obligations; as well as the risk factors described in the Company’s annual information form and other regulatory filings. The forward-looking statements contained in this press release represent our expectations as of the date hereof. Forward-looking statements are presented for the purpose of providing information about management's current expectations and plans and allowing investors and others to obtain a better understanding of our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. The Company undertakes no obligations to update or revise such statements to reflect new circumstances or unanticipated events as they occur, unless required by applicable law.
Source: Emerald Health Therapeutics Inc.