Emerald Health Therapeutics (TSXV:EMH,OTCQX:EMHTF) announced an increment to its purchase agreement for harvested hemp flower and leaf, or hemp chaff, from Emerald Health Hemp.
As quoted in the press release:
Emerald Health Therapeutics reports that is has expanded its agreement to purchase harvested hemp flower and leaf, or hemp chaff, from Emerald Health Hemp Inc. (EHH) from 1,000 to 1,200 acres for 2019. EHH is a wholly owned subsidiary of Emerald Health Sciences Inc. and a related party of Emerald. Based on last year’s harvest, Emerald expects production from the 1,200 acres to be at least 270,000 kilograms of hemp chaff in 2019 with, conservatively, approximately 2 percent cannabidiol (CBD) content. Emerald estimates that this hemp may yield 3,500 kilograms of extracted CBD, which it plans to use to manufacture premium oils, softgels and associated value-added products for Canadian adult-use and medical consumers.
“Emerald, through its partnership with the Factors Group and their scalable processing capacity, is uniquely situated to become one of Canada’s leading producers of premium CBD products from hemp,” said Dr. Avtar Dhillon, President and Executive Chairman. “We established our first-mover advantage in 2018 by securing hemp on a large scale and gaining production insights that will benefit us in 2019. With even more supply contracted for this year, we expect significant near-term growth in this market segment.”
Emerald has also formed Emerald Health Therapeutics Hemp USA Inc., a wholly owned subsidiary of Emerald Health Therapeutics, which will seek to establish strategic supply agreements with US-based hemp farmers as well as explore opportunities to export its Canadian hemp-derived CBD products to the US.