TORONTO, Oct. 12, 2018 (GLOBE NEWSWIRE) -- Emblem Corp. (TSXV:EMC, OTCQX:EMMBF) ("Emblem" or the "Company") delivers strategic vision to shareholders:
With adult-use legalization only days away, I am incredibly excited to provide an update on Emblem’s progress and plans for the future.
2018 has been a year of enormous change and evolution for the Emblem group of companies. We have made incredible strides and I couldn’t be prouder of the team we’ve assembled. Emblem continues to bring innovative products to market, most recently with the launch of Atmosphere oral sprays, and we’re firmly executing on our three-year strategy.
Most notably, in the third quarter we executed a strategic pivot in our approach to cannabis production, cancelling our capital-intensive production plans, and instead electing to take advantage of the significant wholesale supply capacity coming online industry-wide. This decision positions Emblem to benefit from what we expect to be falling prices in the production segment as commoditization increases. In practical terms this gives Emblem access to ample capacity, while freeing up our capital resources to focus on our passion for innovative value-added products where we already realize higher margin profiles.
Some of my proudest highlights from the past 10 months:
We took the bold step in signing a significant wholesale supply agreement with Aphria Inc., bringing our anticipated aggregate supply to almost 200,000 kg over five years (the “Aphria Supply Agreement”)
We were one of only six LPs to enter into a supply agreement with Shoppers Drug Mart, to help bring our medical products to patients across Canada
We have received provincial approvals to supply the Ontario, Alberta, British Columbia and Saskatchewan adult-use retail markets, with plans to keep growing Canada-wide in 2019
We made investments geared towards return on investment and established supply agreements with Fire & Flower and Starbuds Canada
We announced an agreement to form a joint venture with Acnos Pharma to bring our medical products to Germany, with an anticipated launch in 2019
We made advances in the product development of our extended release tablet in partnership with Canntab Therapeutics Inc.
We announced a partnership with GreenSpace Brands, a highly regarded consumer packaged goods company, to jointly produce CBD-infused health and beauty products as regulations allow
We launched our first adult-use brand, Symbl, which reinforces the core values of the Emblem brand and philosophy
We strengthened our management team with experienced talent from the beverage alcohol and pharmaceutical industries, including recently announcing the appointment of accomplished pharma executive Wayne Kreppner as President of Emblem’s Medical Division
We established a unique partnership with Durham College, through our patient education division GrowWise Health Limited, to educate future business leaders in the cannabis sector
We invested in DriveABLE to help support alternative methods to test cognitive impairment and support responsible use of cannabis products
We successfully delivered our first adult-use cannabis shipments to Ontario and Alberta at full committed quantities
We nearly doubled our active patient count, resulting in more than 5,000 patients now having access to Emblem’s medical cannabis products.
Finally, we have made significant progress on the completion of our new 30,000 sq. ft. Product Innovation Centre with a 5,000 sq. ft. GMP certified laboratory, scheduled to come online in early 2019
Needless to say, it’s been a busy year!
Emblem has continued to zig while the rest of the industry zagged – we’ve firmly repositioned the company to be a market leader in product innovation and branding. As we’ve seen in U.S. states that have legalized cannabis including Colorado, Washington and California, consumer demand has dramatically shifted away from raw cannabis in favour of innovative, convenient and smoke-free cannabis products that meet more consumer preferences.
Despite this, the industry predominantly continues to follow a cultivation-centered business model that requires cultivators to invest tens of millions of dollars into building and operating complex cannabis farming operations. As a result, massive amounts of capital are diverted away from what we believe could be the real drivers of future revenue growth and shareholder value – specifically research, development and commercialization of the next-generation of cannabis products and brands that consumers want. This is where we think that Emblem can differentiate.
Recognizing this new reality, Emblem is boldly charting its own path. Rather than following the pack, we made the bold decision to move away from cultivation and farming by signing the Aphria Supply Agreement and allowing Emblem to invest its energy and resources into developing revolutionary consumer products, building relevant brands and growing effective distribution channels.
Emblem intends to become a leading health and wellness focused consumer packaged goods company, providing the high quality cannabis products to patients and consumers domestically and internationally. To compete in this rapidly evolving industry, focus is critical to success. Emblem intends to leverage core competencies in innovation, marketing and brand development to launch innovative products and brands before our competitors, giving us a strong first-mover advantage in this nascent industry.
We are driven by three goals, focused on delivering the greatest shareholder returns:
To become a best-in-class producer of health and wellness focused products in the cannabis industry, driven by quality, consistency, and innovation.
To define our target market(s), execute within those markets, and become recognized as a ‘best brand’ in each market segment.
To build a business that is financially sustainable and profitable.
It is my belief that in the future, the notion of “production capacity” will be long forgotten in this sector. What will matter is how brands resonate with end users, and ultimately, their market share both domestically and globally. I believe that this brand recognition is likely the greatest opportunity for the sector and where the greatest shareholder value will be achieved.
Our recent supply commitments significantly amplify the value of our established products, brands and distribution. With our award-winning customer care and network of GrowWise cannabis education centres, we are a trusted source of cannabis products and information, and a collaborative industry leader that is committed to promoting responsible use. I believe that Emblem is well-positioned to realize our pioneering vision and meet the changing needs of consumers, patients and healthcare professionals now and into the future.
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