In his research report, Pearlstein mentioned that Emerald Health Therapeutics Inc (CVE:EMH) differentiates itself from rival licensed producers with major focus on high-margin prospects in the space. Rather than just manufacturing marijuana, the company uses diverse and extensive library of strains to advance medicinal products that are supported by clinical studies. For these reasons Pearlstein mentioned that Emerald Health is on the cutting-edge of CBD science.
On a technical note, the firm has a total of almost 78.2 million shares due. This comprises the latest Dundee Capital financing, which is planned to finance the construction of a new growing facility spreading across 100,000-square-foot in the Greater Vancouver region. It will assist in financing current R&D activities.
What makes the Emerald’s share structure especially interesting is that an insiders group led by Dr. Dhillion control more than 58% of the shares, all of which are withheld from trading. Such a comparatively tight share arrangement, matched with encouraging news flow, usually acts as a catalyst to appreciation in share prices. Irrespective of how quickly company can expand its cultivation capacity, there will be many industry-related news in the imminent months to keep its stock price buoyant.
That mentioned, any headway that the firm can make this year in its attempt to turn cannabis into conventional drug will likely add a considerable premium to Emerald’s share price. Ultimately, if company can earn any amount of the success being relished by GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH), then patient shareholders will be well rewarded with a home run win.
Despite the scope shown by cannabis drugs, only 5% of Canadian physicians are keen to prescribe it to patients. This unwillingness is due to their inability to be clinically precise in terms of dosages when advising it. Also, health insurance firms are still unwilling to cover the cost of cannabis-based treatments.