Where in all of that unformatted mess of text do you get the idea that Emerald could or would be able to buy CGC/Tweed?"
makingmoney1 wrote: So I decided to share it....possible acquisition of cgc? Emerald Health Therapeutics, Inc. (Formerly T-Bird Pharma Inc. and formerly Firebird Energy Inc.) Management Discussion and Analysis For the three and six months ended June 30, 2015 - 3 - Description of Business EH Therapeutics is a publically traded company with headquarters in Victoria, B.C. Canada. The Companys common shares are listed on the TSX Venture Exchange (TSXV), under the trading symbol EMH. EH Therapeutics is the parent of the wholly owned subsidiary EH Botanicals, also located in Victoria, B.C. EH Botanicals was founded in 2013 for the purpose of producing and selling Medical Marijuana under Federal Licence. During the year ended December 31, 2014, Health Canada granted EH Botanicals a production licence with a term ending February 6, 2015, which was extended to May 6, 2015 in the first quarter of 2015, and further extended to November 6, 2015 during the second quarter of 2015. As of May 6, 2015, Health Canada also expanded the licence to allow for sales of medical marijuana and EH Botanicals started selling to patients in July 2015. EH Botanicals goal is to be an exemplary Licenced Producer with rigorous quality standards for its products, processes and client services. EH Botanicals fully developed production and quality systems, including SOPs, are tested, scalable and transferable and comply with all Health Canada regulations as established under the MMPR. Recent Developments and Subsequent Events In April 2015, the Company, together with certain of its shareholders, completed a transaction with Emerald Health Sciences, Inc. (formerly Medna Biosciences Inc.) (EH Sciences) whereby EH Sciences acquired (the Escrow Transfer) a total of 20,156,790 common shares of the Company (44% of the Companys issued shares) from five of its founding shareholders, including its former CEO and CFO, at a price of $0.21 per share. The Company will benefit from the pharmaceutical expertise that EH Sciences brings and the collaborative efforts of the two companies will provide opportunities for expansion in cultivation capacity and technology advancement in the medical cannabis industry. In April 2015, concurrent with the completion of the Escrow Transfer, three new board members were appointed and three existing board members resigned. Dr. Avtar Dhillon was appointed as Executive Chairman of the Company and Mr. David Raffa, previous Executive Chairman, continues as a member of the board. In January 2015, the CEO stepped down and was replaced by Dr. Bin Huang, who had previously been appointed as President and COO. In February 2015, the CFO stepped down and was replaced as well. The changes in the management team represents the progression the Company is making from a development stage company towards a commercially viable operation. With the approval of the sales licence in May 2015, EH Botanicals continues to focus on client acquisition with the establishment of an expanded client service representative team. Marketing and promotional activities began in the second quarter with a priority on physician and client education. In addition, a new website has been launched which includes an on-line client service platform. While the client verification process as required by Health Canada is comprehensive, the Companys goal is to maximize client registration for the remainder of the fiscal year. The Company is evaluating pricing options, including compassion pricing. Internal production to date has been moderate as the Company has limited storage capacity in its vault and was not able to build up large quantities of inventory prior to sales commencing. The Company has Emerald Health Therapeutics, Inc. (Formerly T-Bird Pharma Inc. and formerly Firebird Energy Inc.) Management Discussion and Analysis For the three and six months ended June 30, 2015 - 4 - requested approval of additional production rooms in its current facility and an increase in the size of the vault. Health Canada approval on both of these requests was expected during the second quarter, however additional information was requested and the approval is expected in the third quarter. In July 2015, the Company purchased additional strains of dried medical marijuana from another Licenced Producer to supplement current inventory levels. The planned expansion at the current and future facilities will allow the Company to significantly increase production capacity within the next two years. The Company currently leases a second facility with a potential space of up to 43,500 square feet, for which a building permit has been received. The Company aims to actively and prudently grow its production capacity to gain economies of scale and assess growth strategies based on market demand. During the quarter, the Company commenced a research and development project related to the Companys strains of medical cannabis. The project will be used to characterize strains and utilize the data generated to assist in: identifying strains with specific compositions of cannabinoids, develop the new strains using the Companys range of genetic material and to ultimately match these strains with patients needs. The project will be partially funded through NRC-IRAP (National Research Council of Canada-IRAP). In July 2015, Health Canada announced new rules related to the production and sales of cannabis oils and related products. In response to this change, the Company applied to Health Canada for a supplemental licence to conduct activities with cannabis for the purposes of producing and selling cannabis oils and similar products. Subsequent to the reporting period, the Company entered into a loan agreement with EH Sciences pursuant to which EH Sciences has agreed to loan monies to the Company on a revolving basis, in amounts and at times agreed to by the parties. Amounts loaned to the Company will bear interest at 5% per annum and will be repayable on demand. Results of Operations The Companys net loss for the quarter ended June 30, 2015 was $1.47 million (loss of $0.03 per share), compared to a net loss of $450,237 (loss of $0.01 per share) for the same period ended June 30, 2014. The net loss for the six months ended June 30, 2015 was $2.24 million (loss of $0.05 per share) compared to a net loss of $432,357 (loss of $0.02 per share) for the same period in 2014. The net loss for the current three and six month periods is comprised of: Revenue The Company commenced sales of medical marijuana in July 2015, therefore there was no sales revenue for the three or six month periods ending June 30, 2015. Operating expenses Current year expenditures have increased significantly compared to the prior year as the Company did not begin operations until May 2014, and there were minimal costs incurred in the three and six month periods ended June 30, 2014. Since May 2014, the Company has hired employees and engaged advisors and consultants to implement the systems and procedures required to produce and sell under the MMPR regulations. Emerald Health Therapeutics, Inc. (Formerly T-Bird Pharma Inc. and formerly Firebird Energy Inc.) Management Discussion and Analysis For the three and six months ended June 30, 2015 - 5 - General and Administrative expenses were $228,883 for the three months and $523,775 for the six months ended June 30, 2015. General and administrative expenses includes wages and benefits, consulting and legal services, and investor relations. Legal services for the quarter ended June 30, 2015 were $52,094 and included transaction fees related to the Escrow Transfer and the annual general meeting. Operating and facilities expenses of $299,885 and $587,098 for the three and six month periods ended June 30, 2015 include pre-sales production costs, production facility costs and quality assurance expenditures that are not included in inventory as of June 30, 2015. Included in these amounts are lease costs and consulting fees related to the second facility which were approximately $105,000 and $20,000, respectively, in each quarter. Sales and marketing costs for the three and six month periods ended June 30, 2015 were $42,755 and $54,702, respectively. These costs include expenditures for medical outreach and educational programs, branding programs and the client services center, which interfaces directly with our clients. Several events were sponsored during the quarter that provided educational material to healthcare practitioners on medical marijuana. Net research and development costs were $6,294 and $8,598 for the three and six month periods ended June 30, 2015, respectively. Research and development projects include testing a variety of growing methodologies and the NRC-IRAP project to characterize medical cannabis strains. The expenses are net of $22,940 in government contribution toward the NRC-IRAP project for the quarter ended June 30, 2015. Share-based compensation of $876,420 and $1,048,244 for the three months and six months ended June 30, 2015, respectively, are primarily compensation expenses related to employee, director and consultant incentive stock options which are measured at fair value at the date of grant and expensed over the options vesting period. Additional share-based compensation in the amount of $273,900 was recorded in the three month period ended June 30, 2015 on the assignment of founders shares as compensation for a finders fee on the Escrow Transfer.