After fulfilling the company’s provincial cannabis supply commitments for the first time this month in both B.C. and Newfoundland and Labrador, Emerald Health Therapeutics (TSXV:EMH; OTCQX:EMHTF) is about to expand its portfolio with a joint venture.
The TSX Venture Exchange granted conditional approval to the Victoria, British Columbia-based Emerald Health for a 51:49 joint venture with a US natural health product supplier.
An official announcement from the company revealed Emerald will invest $5 million to acquire majority control of San Diego company Emerald Health Bioceuticals (EHB).
Under the terms of the deal, exclusive rights will be granted to Emerald for selling EHB products in Canada under the new brand name Emerald Health Naturals (EHN).
The current EHB product lineup revolves around non-psychoactive nutritional supplements focused on endocannabinoid system health.
According to Emerald’s announcement, the move comes after research revealed that natural health products are purchased by 60% of consumers who buy legal marijuana.
That connection hasn’t been lost on the industry at large, with Global Health Clinics (CSE: MJRX) recently signing a letter of intent to team up with holistic care company Integrated Alternative Health Services.
Emerald Health Therapeutics commented on the joint venture deal with EHB:
“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.”
The statement further clarified, “These channels are not authorized to sell cannabis under the Canadian federal cannabis regulations for recreational use which came into force on October 17. 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.”
In related news, Emerald further filed 17 patents last month for inhaled dosage and capsule-based cannabis products aimed at medical usage.
Emerald’s joint venture with EHB is just the latest in a string of cross-border US partnerships since recreational marijuana was legalized in Canada last month by the Cannabis Act.
Headquartered out of Ontario, High Hampton Holdings just acquired Nevada company Mojave Jane LLC last week, while Denver company Dixie Brands recently announced plans to expand into the Canadian market.