Emerald Health and Pure Sunfarms report third-quarter results

British Columbia-based medical cannabis producer Emerald Health Therapeutics, Inc. (TSXV: EMH; OTCQX: EMHTF) and Pure Sunfarms (PSF) revealed their third-quarter 2019 financial results. During this time, Emerald net sales doubled to $9.3 million from the prior quarter while Pure Sunfarms net sales were $24 million. Pure Sunfarms also reached its annualized full production run rate of 75,000 kg.

Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF) and Pure Sunfarms (PSF) reported their financial results ending on Sept. 30, 2019.

Cannabis is one of the world’s most talked-about topics and the Hemp.im cannabis news application focuses on the latest news, social change, economic trends, and medical information in the industry.

The app also covers the entire spectrum of companies involved in the hemp industry, including hemp stocks listed in the U.S., Canada and other markets such as Canopy Growth, Tilray, and Aurora Cannabis.

Emerald Health highlights

Net sales doubled to $9.3 million from the prior quarter
Net loss of $17.5 million impacted by a $2.8 million inventory write-down and a decrease of $9.1 million in fair value adjustments of biological assets
Total SG&A expenses of $10.1 million which is lower than the Q2 expenses of $12.4 million
A second consecutive quarter of positive adjusted EBITDA at $2.4 million in Q3 2019
$5.5 million positive working capital shows an improvement from the working capital in the previous quarter ($4.2 million

Pure Sunfarms highlights

Net sales were $24 million. The sales volume was almost 50% higher than the previous quarter
Gross margin before non-cash adjustments to the fair value of inventory and biological assets was 69%
EBITDA was $18.2 million, an EBITDA margin of 73%
Net cash and cash equivalents as of Sept. 30 were $16.1 million, up from $2.4 million as of Dec. 31, 2018.
Net loss of $2.4 million reflects a non-cash adjustment to the fair value of inventory and biological assets
The total production cost of $0.63 per gram, compared to $0.65 per gram in Q2
Emerald Health recognized a loss of $1.2 million from its 50% share of the Pure Sunfarms joint venture, compared to $14.5 million in Q2

Financing and capital resources

Emerald’s net sales doubled to $9.3 million from the prior quarter. (Source)

During 1Q19, Emerald filed a short-form prospectus in each of the provinces of Canada that qualifies for the issuing and secondary sale of $150 million of common shares or other specified securities.

It also initiated an at-the-market (ATM) equity program, under which it has raised gross proceeds of $18.8 million as of Nov. 29, 2019.

On Sept. 10, 2019, the company closed a secured convertible debenture offering of 2,500 units at a price of $10,000 per convertible debenture unit for gross proceeds of $25 million to a single Canadian institutional accredited investor.

Pure Sunfarms and Emerald’s 50% joint venture

PSF closed a secured convertible debenture offering of 2,500 units. (Source)

Pure Sunfarms (PSF) reached its annualized full production run rate of 75,000 kg in its 1.1 million square foot Delta 3 facility and is now converting its nearly identical 1.1 million square foot Delta 2 facility to cannabis production.

PSF aims to complete its first harvest at Delta 2 in Q2 2020 and achieve full run-rate production in the fourth quarter of 2020, subject to completion of construction and the receipt of Health Canada licenses.

Pure Sunfarms continues to work toward additional provincial supply agreements for its high-quality dried flower cannabis product across Canada and plans to roll out other products such as pre-rolls, oils, and vapes in the coming months.

(Featured image by mohamed hassan via Pixabay)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Hemp.im, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in Le Lezard, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Hemp.im assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Hemp.im is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

Philip Gregg

Philip Gregg is a tech biz writer, with a keen understanding of blockchain technology, Internet of Things, and cloud services. He also serves as chief consultant for an IT business in Washington and a cryptowallet startup in Tokyo. Philip holds an MBA in finance and has previously worked at a Silicon Valley company before striking out on his own. He is a dad to three German Shepherds and owns a sweet vintage Mustang he fondly calls Sadie.