Great post from EMH yesterday;
Great post from EMH yesterday; August 23, 2018 3:05 PM What's Up With Emerald Health? The Share Price Emerald Health Therapeutics Inc (TSX: V.EMH, OTCQB: EMHTF, Forum) is on fire. As of August 22, 2018; a 5-day chart shows a Company that is up roughly 50%, at a time when the charts for most cannabis stocks are looking pretty flat. EmeraldHealthFA3_5day-(1).png (click to enlarge) For investors doing some sleuthing on this recent surge, the question becomes why? One explanation for the surge is internal. On August 21, 2018; the Company announced the appointment of Mandesh Dosanjh as President and CEO of Pure Sunfarms Corp. Readers familiar with Emerald Health will know that name. Pure Sunfarms is a 50/50 joint venture between EMH and Village Farms International Inc. (TSX: VFF), one of the most experienced agricultural growers in the region. Located in prime agricultural land in Delta, B.C., Pure Sunfarms begins with 1.1 million square feet of greenhouse space allocated for cannabis cultivation. This greenhouse has been retrofitted for cannabis cultivation and is now in commercial production. As much as 3.7 million square feet of additional (existing) greenhouse space is potentially available for cannabis cultivation under the terms of the JV. Thats a lot of cannabis cultivation capacity. So what does Mandesh Dosanjh bring to the table? Distribution expertise. Dosanjh is leaving his position as Senior Vice President, Supply Chain and Wholesale, at the Liquor Control Board of Ontario (LCBO). His responsibilities included leading the LCBOs supply chain division, as well as managing and developing its supply chain and wholesale strategy, specifically with reference to preparing for the distribution of recreational cannabis. Chris Wagner, CEO of Emerald Health, offered these thoughts. Mr. Dosanjh comes to Pure Sunfarms from a unique vantage point in the Canadian cannabis industry, and we expect his insights and relationships to be invaluable in growing the business. His broad experience will also be instrumental in driving efficiencies that will benefit bottom-line profit. [emphasis mine] A unique vantage point? Its an inside vantage point into recreational cannabis distribution in Canada, on the eve of the legalization of recreational cannabis and just as provincial jurisdictions are negotiating their initial supply agreements with Canadian LPs. Given this advantage, its not hard to see this appointment immediately translating into better bottom-line performance through maximizing sales and increased productivity. However, for investors looking back a little further, there is a more general explanation for the jump in the Companys share price. On August 15, 2018; Constellation Brands (NYSE: STZ) announced its second investment in Canopy Growth Corp. (TSX: WEED). Stockhouse covered this important news in a feature article. A one-month chart of EMH shows that this move fully tracks the stocks big, recent jump.