Opinions
Chris Damas
Emerald Health Therapeutics Inc
EMH-X
WATCH
Aug 31, 2017
Stock price when the opinion was issued
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One of the 39 marijuana licensed producers. Has a small operation on Vancouver Island. Also, has property on the mainland and the goal is to build a new facility there and get it licensed. A new licensed facility, gets them into the Health Canada queue a lot faster. This company flies under the radar right now. Valuation is still fairly reasonable. There is probably a lot of opportunity for this longer-term.
They have been enormously volatile. It is back down to $1.17 and looks enticing. They have good science, but this deal has him concerned because the greenhouses were used for vegetables. They are often treated with substances that Health Canada may not approve of and they may not allow the conversion of the green houses. Texas is not a friendly jurisdiction. You might make money in this stock. He is warm on this deal.
They have a joint venture on a million square feet of greenhouse where they are cultivating plants. But he figures cannabis will become a commodity and it will be cheaper to grow it outdoors in the 4 summer months and then freeze it. A lot of it will go into oils. The company is set up well and they can grow. We need to figure out what they are doing with branding to see if they will be a winner. He figures there will end up being some better names coming out of it.
He has said there might be some pesticide residue risk in the greenhouse. But there is nothing stopping them from growing weed at the site. Stock volume has died out over the last while. It has been building a base for quite some time.