In the attached release, Embark Health has announced that its Delta, BC facility has now received all occupancy and business licences required from the city of Delta, BC and will commence extraction of cannabis in April 2020. This step was foreshadowed in an MMJ announcement on 13 February 2020 following the receipt of the company’s Health Canada licence necessary to operate the facility. Embark Health is seeking to create the largest cannabis (THC and CBD) extraction business in Canada with facilities in British Columbia (BC) and Ontario (ON).
Embark Health will begin production of cannabis extracts at their Delta, BC facility immediately and has entered into several letters of intent to secure 300,000kgs of biomass from well known suppliers as feedstock for the next 2 years. Initially, they intend to produce Bubble Hash, Dry Sift Kief and Rosin for commercial sale in addition to providing tolling services to a wide range of customers. Other extraction techniques will be added as more rooms in the facility are licensed.
MMJ was a foundation investor in Embark Health in July 2018. MMJ’s investment in Embark Health has a current book value of CAD13m1 which represents 1.9 times MMJ’s investment in the Company and comprises:
MMJ’s investment in Embark Health demonstrates MMJ’s capacity to originate early stage unlisted investments in the cannabis sector with the prospect of realising potential gains on listing the public markets.
Further detail on the operations of Embark Health may be found on the portfolio page on the MMJ website.
1 As at 31 March 2020
2 MMJ values its warrants using the Black Scholes model using assumptions including term of warrant
3 A Liquidity event is an initial public offering or a material sale event
4 Exercise price has based on MMJ book value of CAD2.40 per shareBack to News