Emerald Health Therapeutics (TSXV:EMH) obtained conditional regulatory approval for a joint venture with Emerald Health Bioceuticals set to be called Emerald Health Naturals.
As quoted in the press release:
The Company will invest $5,000,000 for 51 [percent] equity ownership of EHN. EHB will grant EHN the exclusive Canadian distribution rights to EHB’s award-winning product line in exchange for 49 [percent] equity ownership of EHN. EHB’s product line consists of nutritional supplements, which use non-cannabis, non-psychoactive plant-based bioactive compounds to support the body’s endocannabinoid system.
Market research commissioned by the Company identified that approximately 60 [percent] of legal cannabis users also use natural health products. This strong consumer overlap between the two markets creates a unique opportunity for the Company to establish its health brand through EHN and begin sales of endocannabinoid-supporting products in natural health product channels. These channels are not authorized to sell cannabis under the Canadian federal cannabis regulations for recreational use which came into force on October 17, 2018. However, if these channels are approved in the future, the Company expects to be well positioned to introduce its cannabis-based products into these channels.