In the attached release Embark Health Inc. (“Embark”) provided an update on the progress achieved during calendar 2020. Embark started the year as a pre-revenue applicant to Health Canada and ended the year with a processing licence (Issued February 7, 2020) and a sales licence to sell edibles, extracts and topicals (Issued December 4, 2020) from Health Canada.
MMJ holds approximately 12% of Embark with a current book value of $13m (refer below).
In the attached release Embark provides commentary on:
Embark also re-stated its commitment to becoming public in 2021 and continues to pursue the completion of the business combination between Mesa and Embark (the “Transaction”). As previously announced on 11 December 2020, the Transaction will result in a reverse take-over of Mesa by the shareholders of Embark. The outside date for the Transaction is 31 March 2021 which would result in MMJ’s investment in Embark being valued using the listed TSXV price of the listed entity.
Embark Health Inc. is an emerging leader in cannabis extraction, with a focus on the formulation and production of advanced 2.0 products for the Contract Manufacturing and Adult-use markets. Embark continues to be at the forefront of production of solventless concentrate products including Bubble Hash, Traditional Pressed Hash, Rosin and Dry Sift. With the acquisition of Embark Nano (formerly, Axiomm Technologies Ltd.) Embark is preparing to launch a suite of next generation Cannabis 2.0 products. The acquired portfolio of products and formulations support the mass production and distribution of advanced 2.0 products including cannabis-infused beverages, topicals, edibles and water-soluble powders.
Further detail on the operations of Embark Health may be found on the MMJ website www.mmjgh.com.au/portfolio/.
MMJ was a foundation investor in Embark Health in July 2018 – the investment has a book value of $13m and now comprises:
1 MMJ has retained the valuation of the Embark shares at CAD2.44 per share pending outcome of the capital raising associated with the pending listing of Embark which is targeted to conclude before 31 March 2021.
2 A Liquidity event is an initial public offering or a material sale event.
3 Exercise price has based on MMJ book value of CAD2.44 per share
4 The return comprises all cash income, sale proceeds, accrued income and fair value of investment at date of calculation.