Emblem Corp (EMC.V) reached a key milestone in its corporate mandate when the company announced yesterday it had received approval from Health Canada for the production of cannabis oils.
Prior to the announcement, the company had already invested more than $1 million in its extraction and purification platform, including a supercritical CO2 extractor, purpose-built rooms, and analytical equipment. It also has a significant stockpile of cannabis for extraction.
In the run-up to its arrival as a public company last week, its oil production bet was largely not a talking point, compared to the company’s signing of former Purdue Pharma boss John Stewart as the head of it’s pharma division, and its growing license.
But, as of of now, that move looks incredibly prescient, adding a fourth strategy to the company’s drive for revenues.
Emblem intends to construct a 2,500 sq. ft. facility dedicated to extraction and formulation in Paris, Ontario. Additionally, the company has also hired three scientists to work exclusively in this new division to develop and manufacture advanced dosage forms of cannabinoids.
Company CEO, Gordon Fox, commented, “This is an incredibly important milestone for us as a company [..] With our ability to extract cannabinoids, we can now actively execute the business plan we’ve built for our pharmaceutical division.”
Starting to see how it all fits together?
We grow the weed, we extract the weed, we turn the weed into pharmaceuticals with our pharma giant at the helm, and we create products that will get out there and replace Oxycontin which, oh yeah, our pharma giant helped establish as a $30 billion seller.
John H. Stewart, the CEO of Emblem’s pharmaceutical division and aforementioned pharma giant, emphasized the importance of CBDs to the medical community, saying, “Cannabinoids have real therapeutic value, as evidenced by the products Cesamet, Marinol and Sativex all having been approved as prescription drugs by Health Canada. In addition, there have been numerous reports published in the scientific literature pertaining to the medical use of cannabinoids – with evidence of efficacy in patients with chronic pain, multiple sclerosis, nausea, neuropathic pain, PTSD and wasting syndrome.”
MMJ patient lists in Canada continue to grow, but many physicians are still reluctant when prescribing MMJ as treatment. This is due to the inability to be clinically accurate in terms of dosage and desired effect when dealing with flower-based therapies. Extracting and purifying cannabis oils so they can be administered in advanced clinically accurate dosage forms will finally bring big pharma legitimacy to the Canadian MMJ space.
Which leads us to the fourth column of the company, its medical clinics. Circle completed.
Emblem already made waves with its IPO December 12, 2016, but if the company manages to stay the course and continue to execute on its unique three-now-four pronged approach, it could very well become the Purdue Pharma of pot.
FULL DISCLOSURE: Emblem Corp is an Equity.Guru marketing client. As always do your due diligence before making any investment decision.