Growing Revenue in a Competitive Cannabis Market
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Emblem (TSXV:EMC,OTCQX:EMMBF) is a Canadian cannabis company and a licensed producer (LP) of cannabis, growing through innovation, distribution and brands that resonate with consumers. The company is divided into three units with each targeting different facets of the market; cultivation, medical, and adult use.
The company’s cultivation unit focuses on developing intellectual property and cultivating cannabis using a climate controlled closed-box facility in Ontario. Its medical unit develops innovative products and targets patient acquisition through relationships with healthcare providers and using educational campaigns to broaden Emblem’s reach. Emblem’s adult-use division is dedicated to the company’s expansion into brand-centric products and brands and partnerships with pioneering retailers like Fire & Flower, a corporately-owned retail cannabis-lifestyle brand and store concept poised to serve customers across the country in provinces where private retail is permitted. This retail environment will be valuable for end-user access, generating brand awareness, educating the consumer and driving market share for Emblem’s adult-use brands.
Emblem offers a wide range of products. In addition to dried flower, the company launched four cannabis oils in 2017, while oral sprays and oil-filled cannabis capsules are slated for launch in 2018, pending Health Canada approval.
In April 2018, Emblem was profiled by Toronto-Dominion Bank (TSX:TD, NYSE:TD). The bank announced that Emblem was one of only three cannabis companies its financial advisors would direct clients toward. Experts believe Emblem was chosen because the company is not currently planning on entering the US, a market under increasing political scrutiny.
Emblem Medical is headed by John Stewart, the former president and CEO of Purdue Pharma US and Purdue Canada. Stewart’s decades of pharmaceutical experience have given him notable insight in dealing with drug regulatory agencies and the inter-country differences in healthcare systems, in addition to an appreciation for cannabis’ therapeutic applications.
- Innovative proprietary technology acquired through partnerships
- Revenue generation underway
- Established patient base of 3,300
- GrowWise™ Health educational unit informs healthcare providers and widens customer base
- Diverse management team with a pharmaceutical, beverage alcohol and marketing background
Medicinal and Adult Use Cannabis
The company’s primary focus is targeting the medical and adult use cannabis sectors in Canada and abroad, through expanding distribution networks, establishing partnerships, and in-house research and development. In March 2018, the company announced that it was selected by Shoppers Drug Mart to supply the company with medical cannabis products.
Emblem is one of only five companies to sign cannabis distribution deals with Shoppers Drug Mart. The company’s products are expected to be sold online in accordance with the restriction of medical cannabis in retail pharmacies. Furthermore, the company announced it had entered into another supplier agreement with cannabis retailer Fire & Flower in April 2018. Under the agreement, Emblem will become a preferred Fire & Flower cannabis supplier for three years.
Emblem’s closed-box facility in Paris, Ontario offers 8,500 square feet of cannabis cultivating space and is ramping up to meet the company’s annual capacity goal of 17,000 kilograms of cannabis flower in 2019.
In addition to the increase in flower production, the company currently has a 30,000 square foot expansion underway at its existing facility that is expected to be complete in Q3 2018. The major components of this expansion will be a GMP extraction facility, laboratory, and pharmaceutical production facility. The expansion will enable Emblem to produce oils and other advanced formulations to exact standards and at considerable scale. The facility’s GMP certification allows access to international markets.
GrowWise Health, a subsidiary of Emblem and a leading cannabis healthcare service, is the company’s educational arm. Its mandate is to inform patients and healthcare providers on different types of cannabis treatments. GrowWise Health operates in medical clinics where cannabis is prescribed, building relationships with physicians and contributing to Emblem’s 3,300-strong patient count.
Emblem’s investment in education goes beyond healthcare: in April 2018, Emblem and Durham College announced the development of a first-of-its-kind Cannabis Industry Specialization certificate, available in Ontario through GrowWise Health. The program is designed to prepare business graduates for work in the cannabis sector.
Precision Dosage Delivery
John Stewart, President of Emblem Medical, leads the Company’s focus on advanced formulations and precision dosage delivery. Emblem has signed a licensing agreement with Canntab Therapeutics (CSE:PILL), an Ontario-based company specializing in producing time-released cannabis tablets for oral consumption. Per the agreement, Emblem has the exclusive right to Canntab Therapeutics’ patents in Canada, while both companies will collaborate on the manufacturing, regulatory approval and distribution of the Canntab Therapeutics’ Extended Release (XR) Tablet. Extended or sustained release dosage forms are designed to release the active pharmaceutical ingredient at a predetermined rate to maintain a constant drug concentration over a specific period of time, resulting in a longer duration of action from a single dose and often with reduced side effects.
Emblem is also working with Dosecann to develop a range of cannabinoid dosage formulations designed to ensure patients are able to titrate and administer each dose the exact same way. The objective is to bring dosage-metered oral spray formulations to the market in 2018, followed by dose-controlled vaporizers.
Nick Dean—President, CEO
Nick Dean is the former CEO of KBS Canada, a fully integrated and award-winning creative advertising agency with offices in Toronto and Montreal. From 2010 to 2017, he led the company through two mergers and a number of substantial client wins, resulting in significant bottom and top-line growth. He earned his MBA from the Richard Ivey School of Business and holds his Bachelor of Commerce Degree from McMaster University. He is a member of the Young Presidents’ Organization (YPO) Toronto chapter and is a mentor for Futurpreneur Canada.
John Stewart—President, Emblem Medical
John Stewart is former president and CEO of Purdue Pharma Canada (1991-2006) and Purdue Pharma USA (2007-2013), one of the largest privately-held pharmaceutical companies in the world. He launched 11 new products, including Ms Contin, OxyContin and Biphentin. He has extensive experience in formulation development, clinical trials and medical communications.
Alex Stojanovic joined Emblem as director of finance in August, 2017. Previously, he held several senior finance positions in Barrick Gold Corporation and Teranga Gold Corporation, including an assignment in Chile overseeing the finance team on a multi-billion-dollar construction project. He has extensive experience in external reporting and compliance, business planning, capital markets activities, internal controls, corporate governance and team development.
Adam Saperia—COO, Emblem Medical
Adam Saperia joined the Emblem team in 2014, stepping into the role of president of the GrowWise Health education vertical. Under his leadership, the division has become one of Canada’s leading providers of medical cannabis education services. As a trusted voice in the emerging cannabis industry, he is a regular commentator on television and radio. He is a passionate philanthropist and serves as the vice chair for the board of directors of National Service Dogs. He holds an MBA from the Schulich School of Business.
Daniel Saperia—COO, Emblem Corp
An experienced operational and financial leader, Daniel Saperia has served as Emblem’s COO since the company’s founding. He also held the role of president and COO for a leading Ontario specialty pharmacy. Prior to joining Emblem, he served for 15 years as President and Chief Financial Officer for two leading international manufacturing firms. He is an ardent supporter of his community and is actively engaged in several philanthropic initiatives, including DANI, a Toronto-based not-for-profit that creates opportunities for adults with special needs.
Prior to joining Emblem, Maria guest spent 20 years at Labatt Brewing Co. / Anheuser-Busch Inbev building and driving brand strategy across an extensive portfolio of high-profile brands in a highly regulated market. Her diverse marketing background includes leadership roles in product development and innovation, where she spearheaded the launch of numerous successful brand introductions assessing customer needs across their respective niches.
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