Emblem Corp. (EMC.V) bolstered its ranks when the company announced on Friday that it had retained the consulting services of industry veteran, Nate Nienhuis, for its Canadian operations.
According to the news release, Nienhuis serves as the Vice President of Horticulture at Canadian Cannabis Corp and is has the distinction of having the first granted federal license in the United States for the cultivation of cannabis.
Neinhuis also designed the HID-based horticultural lighting systems commonly used in indoor cannabis production across North America today. He has acted as design consultant to cannabis operators in the United States and Canada, and has served as lead horticulturalist in medical cannabis regimes in California, Arizona, Colorado, Washington, Oregon, Nevada and Washington DC.
Emblem President, Maxim Zavet, commented, “The industry challenge for the Canadian market is to produce high quality cannabis to the exacting standards of the Canadian regime, at scale. Mr. Nienhuis brings the leadership and experience that will allow us to produce premium quality cannabis that only indoor growing provides, and in the considerable volumes that the Canadian market is anticipated to require.”
This enlistment is intended to assist the company in executing its mandate of producing high-quality cannabis in a closed box, clean room environment on a massive commercial scale.
Neinhuis’ expertise with extraction will also facilitate Emblem in its pursuit of extracting top quality cannabis oil and producing cannabinoid-based medication in standard pharmaceutical dosage formats.
Emblem will draw on Neinhuis’ extensive experience and knowledge as it builds additional capacity at its facilities in Paris, Ontario
Company CEO, Gordon Fox, summed up, “We are delighted to have Nate as a member of our team and delighted that he has made a long-term commitment to Emblem.”
Emblem currently trades at $2.59 per share, a drop of 62% from February 17, 2017 when the investors were willing to pay $4.20 a share.
Coincidentally, that was the day that the BC Supreme Court announced its ruling that municipalities had the right to regulate dispensaries in their civic jurisdictions.
Then Sean Spicer opened his lying beak to say that the Trump administration wasn’t on side with legalization of recreational marijuana and had vowed to fight the trend.
Shortly after that, Canada’s drug czar stated that the legalization of recreational marijuana wasn’t going to happen as quickly as everyone was predicting.
The cannabis market fizzled in the aftermath.
This is the natural course of events for the sector as extreme valuations based on blue sky potential finally normalize in the face of legislative and cultural realities.
This is still a relatively nascent space and much has yet to be ironed out, like who has jurisdictional authority over dispensaries in Canada, is it municipal, is it provincial or is it federal?
Despite all this, the industry continues to move and recreational marijuana is coming, but the legal framework necessary to make that happen may take more time than many industry players have predicted.
However, as everyone ramps up production to capitalize on the this anticipated legalized recreational marijuana market, we could end of with a glut of product if the government drags its feet. This could seriously impact both the Canadian MMJ market and those that have invested in it.
One thing to consider, however, a delay will only serve to further normalize the sector, providing an easier entry for first time investors. Also, those that bought in early and continue to stay long with the right company will still profit from their patience.
FULL DISCLOSURE: Emblem Corp is an EQUITY.GURU client.