Welcome to Technical420! Today, we are fortunate to have Ian Parker, CEO of Emerald Organic Products Inc. (EMOR), join us to discuss what he is seeing in the cannabis industry. Ian is the CEO of an emerging CBD company that has been focused on making accretive acquisitions and this is an opportunity that we are excited about.
- Thank you for joining us Ian. To start us off, can you tell our readers about the business and where it is going?
Our goal since inception has always been to have a robust health and wellness offering. This includes Hemp and CBD products but is not limited to those products. Our strategy address three main areas: 1. Highest quality wholistic health and wellness products (including hemp and medical marijuana); 2. Creation and acquisition of cutting edge FDA regulated therapeutics; 3. Improving access to both wholistic and FDA regulated health and wellness products.
Let me explain this in a bit more detail. Our wholistic supplements and food products that lend themselves to a naturopathic approach to health and wellness. In addition, we are seeing an increasing trend of wholistic products (including hemp and medical marijuana) intersecting with Pharma or FDA regulated therapies. We have addressed this shift by fortifying our wholistic products with patented cutting edge regenerative medicine. We feel this gives us a significant competitive advantage over other companies. Finally, we have acquired and expand on the proprietary facial recognition health and wellness vending machines by filing patents that enable these machines to be virtual medical kiosks. Because the database is HIPAA compliant and can dispense age and identity restricted products, we have enabled a confidential booth on the machine to take your vitals while your have a telemedicine consultation with a doctor. Because we can dispense identity restricted products, the doctor can diagnose, prescribe and in the most common case a patient can receive the prescription right from the virtual wellness center.
- During the last year, the company has taken significant strides as it relates to the burgeoning cannabidiol (CBD) industry. Can you tell our readers about your accomplishments as it relates to the CBD industry and where the business is going?
We observed from the beginning that the Hemp and CBD supply chains were immature, limited and fragmented. Sourced product was unreliable and poor quality. So we spent part of last year making sure we had seed to table vertical integration. During that time we also expanded into other cannabinoids. This enables us to bring other cutting edge consumer products and FDA therapies to this booming CBD Industry.
- Through a series of strategic growth initiatives, the company has positioned itself to be a beneficiary of the legal cannabis movements. Can you discuss the strategy in place for growth and the potential catalysts for the business?
We see legal hemp and marijuana as both a key consumer package good (CPG) category and as an increasingly important part of pharmaceutical drugs. We have put in place initiatives to create therapeutic using of entire cannabis plant. We have also created complimentary non-cannabis products that work synergistically with our cannabis products. In addition, we have implemented initiatives that will allow us to create a robust database of various strains and cannabinoids that will be invaluable to our efforts in the FDA regulated drug arena. Combine all of this with easier access to these health and wellness products and you have a magical combination.
- On the international side of the cannabis industry, we have seen a lot of movement in Europe and South America. Is the company focused on expanding into international markets and can you explain your strategy to do so?
The reach of our experienced management team and our extensive international relationships and have given rise to a number of very interesting international opportunities. These conversations are still early stage, however, I would expect that in some time in late 2020 we should have material news on the international front.
- Demand for CBD products continues to increase and we have seen a substantial increase in the number of brands that are focused on the CBD opportunity. How is Pura Vida / Zenavita differentiated from the competition?
Yes, this an excellent question so let me highlight some of our key competitive advantages. First, it’s important to note that what we have seen the CBD and Hemp market is a rush of opportunistic marketeers efficacy and quality and are here only to take advantage of consumers. The truth is that we really don’t see these opportunistic marketeers as our competitors. Most will not last the test of time. Our focus for our Pura Vida and Zenavita brands has always been on quality and efficacy. This will give our brands trust and staying power.
- The economics and the potential for price compression when it comes to CBD has become a major topic of discussion with investors. How is the company positioning itself when it comes to protecting the business from increasing competition and price compression.
We have never focused on the commodity of hemp or its derivative components. We have always focused on branded products. The prices will definitely compress on the commodity as the market matures. This will actually helps us. It will eliminate the players who are not serious and committed to quality, safety and compliance. Those players are hurting our market and confusing the consumer. Because of our vertical integration we have the ability to protect are margins. We also have developed a very successful grass roots marketing program to sell directly to consumers. We want to be the brand they trust. Trust is the best way to mitigate commodity sensitivity. Trust is what builds brand value that is not correlated to the underlying commodity. For example, Coca Cola does not fluctuate with the price of sugar. You are not buying sugar water your are buying Coca Cola.
- How much revenue does the management team expect to generate in 2020? Which products are expected to be the biggest value drivers?
Let’s take one division at a time:
- I would expect CPG to be on a run rate of 40 million a year by the end of 2020.
- I would expect our virtual medical kiosks to be on a run rate of 30 to 40 million by end of 2020. We are adding additional services to these machines that may increase those number significantly.
- FDA regulated therapies will likely not produce any revenue 2020, however, we would expect to be going to market in 2021 with a skin regeneration product that would be best in class addressing a multi billion dollar annual demand. This product has already past phase 2 and is preparing for phase 3.
- Is there anything your would like to add that you feel would be relevant to investors.
Yes, we have three initiatives that we are in the late stages of that I feel would be relevant to investors today. First, we are in the late stages of negotiations to add telemedicine services and same day Rx medication delivery. We are also in the late stages of negotiations with a diagnostic testing relationship that would not only address the current needs created by Covid-19 or corona virus, but would also provide solutions for superbugs that may arise in the future.
Pursuant to an agreement between StoneBridge Partners LLC and Emerald Organic Products Inc. (EMOR) we have been hired for a period of 180 days beginning January 13, 2020 and ending July 13, 2020 to publicly disseminate information about (EMOR) including on the Website and other media including Facebook and Twitter. We are being paid $6,500 per month (EMOR) for or were paid “0” shares of restricted common shares. We own zero shares of (EMOR), which we purchased in the open market. We plan to sell the “ZERO” shares of (EMOR) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (EMOR) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.