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Emerald health exiting cannabis business

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BUSINESSEmerald Health posts 32% sales drop, exits cannabis sector After too-bleak an outlook in legal weed, the firm says it can better secure shareholder value via pharmaceutical development ByNick LabaPublished1 hour ago Emerald Health posts 32% sales drop, exits cannabis sectorThe company had just said it was launching a new line of cannabis drinks on Nov. 3. Image via Emerald Once producer-of-promise Emerald Health Therapeutics, Inc. (CSE: EMH) (OTCQX: EMHTF) is making a sudden exit from the cannabis industry, citing bleak prospects for increasing shareholder value. The news comes on the heels of the company announcing new weed sector deals as recently as early November, and publishing disappointing third-quarter earnings results. In a statement Monday, Emerald said its leaving the recreational and medical cannabis business, to pivot to a pharmaceutical development focus, where its board has significant expertise. Read more: Emerald Health partners with HYTN to launch THC drinks in Canada The firm said it intends to find buyers for its cannabis assets, and to make large cost cuts. Our management team and staff have shown exemplary commitment and effort in advancing Emeralds cannabis business, but in a market with a very large number of cannabis operating licences, increasing competition and declining retail prices, the path to achieving profitability and increasing shareholder value has been very challenging, chairman Jim Heppell said in the statement. Instead of committing additional capital and effort to focus on this very challenging and saturated market, the Board has decided that Emerald shareholders would be better served by the company exiting the recreational and medical cannabis business and pivoting into pharmaceutical development.