Dear Fellow Investors,
It has been an incredible and productive time for the team since the inception of Embark Health, Inc in 2018. We are thrilled to provide you with an exciting update on the key milestones and deliverables that have been achieved to date. The foundational elements of the business have been established and implemented to propel and operationalize production. The brand has been designed and established from the ground up and is gaining momentum in the marketplace. The team is activating the plan to support growth as Embark moves toward production readiness. A Strategic Timeline chart has been included in our update below to highlight key milestones and targets through Q4 2019.
Key investments and partnerships have been established. A chart with the corporate entities has been included in our update to illustrate the corporate structure and key investments established under Embark Ventures which ladders up to Embark Health. Updates on our Production Facility and Financials are also listed below for your reference.
Thank you for Embarking with us! Stay tuned for upcoming investor communications as we continue to deliver on key milestones within our strategic plan.
Stephanie and the Team at Embark!
The chart below highlights the Embark team’s accomplishments to date and what we are moving towards through the remainder of 2019!
Below are key updates on the team’s progress with the Delta facility and our Processing Licence to date:
Operationalization of the Delta, BC extraction facility is progressing well. The building rezoning application was submitted mid-October 2018 and it is in the final stage of the rezoning process. The process is currently ahead of schedule.
Simultaneous to the rezoning process is the building permit process. The building permit was submitted early December 2018 and we are in the finalization stage of the Building Blueprint.
Embark’s Processing License application was submitted early February 2019. Our application status has moved forward and is now under Active Review. We do not foresee any hurdles to it being issued and we are anticipating a 2-3 month turnaround by Health Canada.
A second production facility is being secured in Southwestern Ontario as per our strategic timeline. It is approximately double the production capacity of our Delta, BC facility. More details will be provided in our next Investor Update
Health Canada Security Clearance has been awarded to Bruce Dawson-Scully.
The Revenue projections were conservatively prepared at C$5,000 at a time when market was US$6,000 to US$7,500. Current market price is more in line with US$10,000.
THERE HAS BEEN CONSERVATIVE SPEND THROUGH THE PRE-OPERATIONS STAGE
Yet, Embark has begun to assemble a formidable team of key leaders possessing cross-industry experience and expertise which has enabled them to move the business forward rapidly.
Embark has also secured a lease on an extraction facility in Delta, BC while not spending on office space in Toronto – where most of the management team is based. The team is leveraging mobile workforce capabilities to connect and collaborate.
Embark is registered with a C.R.A. business number and has income tax, GST/HST and payroll accounts – all remittances are current.
|NEW INVESTMENT: A key equity investment in Good Buds. Good Buds is located on Salt Spring Island, British Columbia. This is a strategic partnership securing biomass supply for processing.|
|NEW INVESTMENT: An equity investment in J. Supply Co. as part of Embark Health’s broader retail strategy. To comply with Ontario legislation, the J. Supply Co. retail arm has been spun out in advance of operation – Embark shareholders now own a pro-rata portion of the resultant entity, Republik Brands Inc. Embark will own 9.9%, ensuring compliance.
J. Supply Co. has entered into a Consulting Services and Brand Licensing Agreement with one of the 25 Cannabis Retail Operators License winners in Ontario. The J. Supply Co. team is providing consulting services to the licensee to assist and advise on the design, build and branding of the retail location. The store will be branded J. London and is located on Richmond Row; prime retail space within the city.