The production of bubble hash, rosin and dry sift has commenced at Embark Health’s newly commissioned Delta, BC, cannabis production facility.
() (OTCMKTS:MMJJF) (FRA:2P9) investment Embark Health Inc has started revenue-generating operations at its newly commissioned cannabis production facility in British Columbia, Canada.
Production of bubble hash, rosin and dry sift is underway following the recent start of producing cannabis extracts at the facility in Delta, BC.
All occupancy and business licences required from the city of Delta were received by Embark Health in April 2020.
More extraction technologies planned
The private company is initially producing the bubble hash, rosin and dry sift for commercial sale as well as providing tolling services to a wide range of customers.
It will add more extraction technologies as more rooms in the facility are licensed.
The following milestones have been passed:
Benchmarking and optimisation of cannabis biomass processing time to ensure the most effective length of treatment to ensure outputs with high purity while maintaining cost-effectiveness; Optimisation of equipment configuration through test runs to ensure equipment is effectively configured for the optimal balance of consistent throughput and purity; Correlation between biomass quality and extraction output determines the most appropriate modality to unveil the purity and unique properties of our partner's biomass; and Developing a revenue pipeline consisting of tolling, contract manufacturing and brokering orders.Growth program
Embark Health aims to create the largest THC and CBD cannabis extraction business in Canada with facilities in British Columbia and Ontario.
It is moving forward with plans to launch two brands in the recreational market – a Value brand and an Approachable Premium brand.
Each will comprise a selection of solventless products within their respective portfolios.
Embark is pleased with Health Canada’s policy announcement May 12, 2020, regarding Operational Changes to Cannabis Program Requirements, which permits licensed producers to expand existing facilities without requesting lengthy amendments to their licence.
MMJ a foundation investor
MMJ was a foundation investor in Embark Health in July 2018 which now comprises:
3.425 million ordinary shares (approximately 12.7% shareholding) in Embark Health with a book value of C$2.40 per share; Warrants 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 that provide the option for MMJ to acquire a further 1.2 million shares at C$1.20 each up with maturity date of two years after a Liquidity Event; Warrants 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; and MMJ had generated a total return of two times on its investment with a current book value of $13.2 million.MMJ’s investment in Embark Health demonstrates its capacity to originate early-stage unlisted investments in the cannabis sector with the prospect of realising potential gains on listing on the public markets.
