On a day when markets started to recover some of their collective sanity, a Canadian health-care firm showed some muscle, if powered by its subsidiary.
Victoria, B.C.-based Emerald Health Therapeutics, Inc. (TSX-Venture:EMH) provided preliminary, unaudited financial results for the second quarter of 2019 for its BC-based 50%-owned joint venture, Pure Sunfarms (PSF). While full-blown results for the quarter will have to wait a couple of weeks, small-cap investors feasted on the early figures.
Tuesday’s news release showed Pure Sunfarms’ sales vaulting 125% to $32 million. Net income, which includes a $20-million net gain attributable to changes in the valuation of biological assets, exceeded $34 million, representing a third consecutive quarter of profitability.
PSF sold approximately 8,000 kilograms of cannabis in the second quarter, and approximately 12,000 kg for the first half of the year.
As for the parent company, Emerald is a licensed producer of cannabis products, with strategic initiatives focused on differentiated, value-added product development for medical and adult-use customers.
Emerald shares triumphed 27 cents, or 14.4%, midday Tuesday to $2.14, on volume surpassing 953,000 shares.