With legal recreational cannabis seemingly around the corner now for Canadians, the industry is back on fire, as are most so-called "pot stocks." Shares of Emerald Health Therapeutics (TSX-V:EMH)(OTCQX:EMHTF) are extending a recent rally on news that its licensed producer application for the Pure Sunfarms Delta 3 greenhouse facility has met the requirements of the paper-based review of Health Canada’s Office of Medical Cannabis.
The OMC didn't have any concerns with all the vital aspects of the facility, including quality assurance reports, tracking systems, security, etc.
The positive review was also good news for Emerald and Village Farms International, Inc. (TSX-V:VFF), Emerald Health's partner in Pure Sunfarms.
The review is part of the process to receive a cultivator's license under Access to Cannabis for Medical Purpose Regulations. The companies are in the midst of a physical conversion of the 1.1 million-square-foot Delta 3 greenhouse from growing tomatoes to growing cannabis, with the expectations that the first quarter-million square feet will be ready in February 2018, at which time documentation can be sent for Health Canada to review.
At capacity, the converted facility is expected to yield 75,000 kilograms of cannabis annually in 2020. Pure Sunfarms also has an option to acquire two other facilities from Village Farms that would bring another 3.7 million square feet of grow space into their portfolio.
Shares of EMH are ahead 20.9% at $2.26 with about two hours left in the trading day after hitting a record high at $2.35. Shares of VFF are up a more modest 2.7% at $3.84.
