Emerald Health Has Been Making All Of The Right Moves So Far In The Back Half of 2021

Earlier this year, Emerald Health Therapeutics, Inc. (CSE: EMH) (OTCQX: EMHTF) delisted from the Toronto Stock Exchange and commenced trading on the Canadian Stock Exchange (CSE).

Although Emerald’s decision to change the stock exchange that it is listed on confused many people at first, the move makes more sense after the company announced a transaction that provides them with leverage to the United States (US) cannabis market.

Last week, Emerald reported a major milestone and announced that its partner, FlowerPod, completed the product development process for a new form of cannabis consumption. The first-of-its-kind cannabis vaporizer puck was developed by HUUETM and the companies are working with Grenco Science, a leader in advanced cannabis vaporization technology, to provide a go-to-market strategy.

This comes a few months after Emerald announced that FlowerPod exclusively licensed the use of its intellectual property (IP) that is related to the cannabis puck concept for the entire US. According to the agreement, FlowerPod has an option to expand globally (excluding select medical markets) upon reaching certain milestones.

Before the end of the year, FlowerPod plans to launch HUUETM in Massachusetts with select retailers and plans to expand into additional states in 2022. Through HUUETM plant-based vaporizer pucks, FlowerPod plans to launch an environmentally friendly flower consumption format that provides a consistent dosage with every vaporization experience.

One of the reasons for our bullish view on the product is related to how it simplifies the cannabis experience by offering five varieties of cannabis that cater to certain needs (i.e. productivity, socialization, anxiety, pain and sleep). We are favorable on how the product is differentiated from other consumption technologies that are available and consider this to be an important aspect of the story.

According to the license agreement, Emerald provided FlowerPod with a repayable loan of US$350,000 and received a 19% equity ownership of FlowerPod and will receive IP license payments. We are favorable on the structure of the agreement and expect the product to serve as a revenue generator for Emerald in 2022.

During the last few years, Emerald has gone through a major transformation and we will monitor how (if) the business is able to get back on track. The cannabis company is committed to creating new consumer experiences with distinct recreational, medical and wellness-oriented cannabis products and we will monitor how the management team is able to create value for shareholders.

If you are interested in learning more about Emerald Health Therapeutics, please send an email to support@technical420.com with the subject “Emerald Health Therapeutics” to be added to our distribution list.

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Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

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