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MMJ Group investment Embark Health secures first B2B sale of Bulk Bubble Hash

2 minutes reading time (357 words)

Embark Health produces Bubble Hash, Dry Sift Kief and Rosin for commercial sale in addition to providing tolling services to a wide range of customers.

Embark Health is MMJ’s largest investee

() Canadian investment Embark Health has secured its first B2B sale of Bulk Bubble Hash, a cannabis extraction product.

The B2B sale followed the start of cannabis extract production by Embark Delta at the facility in Delta, British Columbia, after receiving all occupancy and business licences required from the city of Delta in April 2020.

Embark Health is seeking to create the largest cannabis (THC and CBD) extraction business in Canada with facilities in British Columbia and Ontario.

“Comprehensive portfolio”

“We are thrilled to have signed our first sale agreement as we ramp-up production in Delta," Embark's CEO Dr Luc Duchesne said.

“There is market demand for 2.0 products and Embark Health offers a comprehensive portfolio of solventless extraction modalities and products to our clients”.

First of several B2B sale agreements

The company advises that this is the first of several forthcoming B2B sale agreements for solventless bulk tolling.

Embark Health’s production lines include Bubble Hash, Dry Sift or Kief and Rosin for commercial sale.

Foundation investor

MMJ was a foundation investor in Embark Health in July 2018.

MMJ’s investment in Embark Health has a current book value of C$13 million which represents 1.9 times MMJ’s investment in the company and comprises:

3.425 million ordinary shares (approximately 12.7% shareholding) in Embark Health with a book value of C$8.22 million (carried at book value of C$2.40 per share);  Warrants (book value of C$1.6 million) that provide the option for MMJ to acquire a further 1 million shares at C$1.75 each up with maturity date of two years after a Liquidity Event; Warrants (book value of C$2.1 million) that provide the option for MMJ to acquire a further 1.2 million shares at C$1.204 each up with maturity date of two years after a Liquidity Event; and  Warrants (book value of C$1 million) that provide the option for MMJ to acquire a further 1.125 million shares at C$4.80 each up with maturity date of two years after a Liquidity Event.

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