Thierry Schmidt, President of Verdélite Sciences, Inc. and Chief Commercial Officer of Emerald Health Therapeutics EMH EMHTF, spoke with Benzinga regarding Verdélite’s prospects as a now fully-licensed, vertically-integrated cannabis production and processing facility.
About Emerald Health Therapeutics and Verdélite Sciences, Inc.
Emerald Health Therapeutics is a licensed Canadian-based producer of cannabis products for medical and adult-use customers.
The company specializes in using proprietary technologies and methodologies for large-scale cultivation and product manufacturing. Emerald’s Québec-based Verdélite is a wholly-owned subsidiary with an indoor grow and processing facility focused on the production of premium, craft cannabis strains.
About Thierry Schmidt
Schmidt served in leadership roles at large organizations such as Avon, British American Tobacco, L'Oréal, Eagle Energy, and Botanical Technologies.
His presence ensures that Verdélite’s operations and Québec expansion are aligned with Emerald’s long-term vision to commercialize craft cannabis.
Background
Emerald’s fully-licensed Verdélite cultivation and processing operation solves common industry production challenges via a vertically-integrated 88,000 square foot facility.
The subsidiary’s operations are focused on the commercialization of higher-margin, premium craft cannabis products through scientifically controlled methods: “We have a total of 21 grow rooms, 16 processing rooms, and dedicated storage vaults,” said Schmidt.
“The facility is divided into small rooms, allowing us to increase operating efficiency throughout the building, from the flow of goods to the flow of people.”
Expansion
Verdélite recently received final licensing from Health Canada making it now fully-licensed for cultivation and packaging, which will allow Emerald to scale its recreational sales across Canada and build a dedicated relationship with Québec customers.
“This confirmation puts us in a great position to be able to bring our branded products to market early next year,” noted Schmidt.
In conjunction with facility additions, new licensing will allow Verdélite to capture untapped demand from the Québecois community.
In a release on the matter, Riaz Bandali, CEO at Emerald, said, “This new license amendment allows Verdélite to transition into its full commercial phase and positions Verdélite as a key growth contributor to Emerald’s financial results in 2020.”
“With this extended, controlled indoor growing space and Verdélite’s unique cannabis strains, we aim to bring distinct and unique consumer-driven products to the Québec market.”
Following this interview, Verdélite made the announcement it had also received its sales license amendment allowing for direct sales of branded products to provincial/territorial wholesalers and authorized private retailers.
Pricing
According to Schmidt, existing volumes -- from other market participants -- are mostly sourced from large-yield greenhouses whose outflows are expected to place downward pressure on the price per gram.
What will assist Emerald in terms of sustaining its competitive advantage and long-term operations is an adherence to differentiation and quality through its Verdélite operation -- as well as its organic facility in British Columbia.
“First, I think, from a competitive advantage point of view, our infrastructure will help us in getting high-quality premium craft flower into the market,” Schmidt noted.
“Second, very few other operations have been prioritizing the Québec market, even when this market represents a fourth of the Canadian population,” he added.
According to Schmidt, Verdélite aims to prioritize consumers across Canada, with particular emphasis on the Québec region: “We believe that we can establish a leadership position in Québec and prioritize our brands based on consumer needs.”
Why It Matters
Verdélite is an arm of Emerald Health Therapeutics; the wholly-owned subsidiary maintains a competitive advantage via economies of scale and a premium product pipeline.
“At Verdélite, it’s the value equation -- delivering a high-quality product -- in a premium, high-profit segment,” said Schmidt.
Planning near-term penetration into the Québec market is a testament to Emerald’s ability to execute on its unique positioning in an emerging space.
Emerald Health is a content partner of Benzinga
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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