Emblem Cannabis Corp will soon be one of Canada’s leading producers, says PI

Newly listed Emblem Corp. (Emblem Corp. Stock Quote, Chart, News: TSXV:EMC) has all the factors to make it one of the leaders in Canada’s fledgling marijuana space, says PI analyst Jason Zandberg.

Yesterday, Zandberg initiated coverage of Emblem Corp. with a “Buy” rating and a one-year price target of $3.25.

Emblem Cannabis Corp., which intended to go public this morning, but subsequently had its trading deferred until Monday, is a wholly-owned subsidiary of Canadian licensed producer Emblem Corp.

“Tomorrow’s listing on the TSX-V represents the culmination of years of incredibly hard work by a very dedicated team who believe very strongly in the medical benefits of cannabis,” said CEO Gord Fox yesterday. “Our listing on the exchange is just the beginning of a new chapter for our company, and for the future of cannabis in this country.”

Zandberg says Emblem has a number of things in its favour, including a strong management team, a state-of-the-art facility in Ontario, a solid patient onboarding strategy, and a pharmacy background, which he thinks will prove to be important because he expects pharmacies will ultimately act as distribution points for marijuana.

“We believe Emblem will rank among the leading cannabis producers over the next few years,” says the analyst. “The Company has a strong medical MJ strategy and intends to be a niche player in the recreational market selling premium cannabis.”

Zandberg believes Emblem will generate negative EBITDA of $3.01-million on revenue of $7.56-million in fiscal 2017. He expects these numbers will improve to positive EBITDA of $5.28-million on a topline of $29.67-million in fiscal 2018.

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