Shares of Emerald Health Therapeutics (Emerald Health Therapeutics Stock Quote, Chart, News: TSXV:EMH) are up today after the company announced its wholly owned subsidiary, Emerald Health Botanicals, had received a supplemental license from Health Canada authorizing it to produce cannabis oils and capsules. The company also received approval for two additional production rooms, something management says will “significantly” increase its growing capacity.
“We are excited by what the supplemental licence means to patients who would like to access their medicine in a variety of forms. We are uniquely positioned to provide medical cannabis to patients in oils and capsules, that can be properly dosed and assessed through clinical studies, given our teams extensive experience in drug development,” said Dr. chairman Avtar Dhillon. “We are committed to providing a consistent, quality product and have acquired the equipment to begin production of cannabis oils immediately.”
On April 1st of last year, new rules were introduced that changed the Canadian government’s approach to marijuana and laid the groundwork for what many think is the inevitable legalization of the substance. In the meantime, a half-step was taken. Under the Marijuana for Medical Purposes Regulations (MMPR), Health Canada no longer supplies marijuana to those with a proven medical need but instead has tasked licensed commercial producers (LPs) to do so.
In June, in a 7-0 ruling, the Supreme Court acquitted Owen Smith of trafficking charges. Smith, the head baker for Victoria-based Cannabis Buyers Club of Canada, was arrested when police found items such as dried marijuana and cannabis cookies on site. Subsequently, Health Canada has now licensed some LPs to produce and sell cannabis oil, fresh marijuana buds and leaves and dried marijuana. The agency has created a new category on its website: “Licensed Producers of fresh marijuana and cannabis oil”.
At press time, shares of Emerald Health were up 11.1% to $0.40.