MMJPhytotech
Embark Health Inc. General Business Update to Shareholders
Embark Health Inc. (“Embark” or “the Company”) is pleased to report on its progress for first 11 weeks of 2021 as Embark continues to deliver its strategic business development priorities on several fronts.
Sales of Branded Products
We are pleased to report that we have entered into supply agreements with the provincial boards of British Columbia, Alberta, Ontario and Manitoba in addition to the authorization from the Province of Saskatchewan for the distribution and sales of our brands for the provincial adult-use markets. We have also entered into a supply agreement with Shelter Market for supply into the national medical market through the Shelter Medical platform operated by Agro-Greens Natural Products Ltd. The table below provides an overview of our distribution channel for each of our brands.
Embark has shipped The Hank Co. Bubble Hash to the province of B.C. and Alberta in addition to Shelter Market. Furthermore, the first order to Ontario has been shipped and the initial product rollouts will include The Hank Co. high THC Bubble Hash and Hazel Hash Sticks. We are targeting shipments to Saskatchewan and Manitoba through the month of April as we anticipate the receipt of a purchase order. In support of sales execution, Embark’s retail sales team continues to conduct retail store tours and product knowledge sessions within the provinces. The team has conducted three regional tours throughout the province of B.C. and is currently touring Alberta. The next store tours will be in Ontario in support of the Hank Bubble Hash and Hazel Hash Stick launches in Ontario the beginning of April. Store tours will follow in Saskatchewan and Manitoba to support April delivery dates to these provinces.
The Embark sales team is also conducting in-store pop-ups with the BC Cannabis Stores over the next two weeks with a focus on The Hank Co. Bubble Hash.
B2B Sales
We continue to enter into new B2B supply agreements and extraction service agreements for tolling with licensed producers for the purposes of supplying bulk 2.0 products such as bubble hash, dry sift, traditional pressed hash, and rosin.
Fundraising
In March 2021, Embark entered into an Engagement Agreement with Mackie Research Capital Corporation to act as the lead agent and sole bookrunner, on a best-efforts basis, for a private placement offering of subscription receipts for minimum aggregate gross proceeds of $3,000,000. A syndicate led by Mackie Research Capital Corporation will spearhead this effort.
Go-Public Strategy
Embark continues to work toward a public listing in 2021. On March 11, 2021 Embark management decided to pursue a direct listing rather than the Reverse Take Over (RTO) of Mesa Exploration. Therefore, Embark and Mesa Exploration mutually agreed to terminate without any break fees owed. Embark aims to complete the public listing process by the end of June 2021.
Health & Safety (H&S)
Dedication to our employees’ health and safety is part of our commitment to quality as a core value of Embark. We embed safety excellence in all our activities through employee collaboration and participation in the H&S program review and development. Compliance with regulations is fundamental, and the program continues to evolve beyond this objective as Embark grows into an industry leader. As part of the continued evolution of our H&S program, we have recently implemented a tool to provide employees with feedback mechanisms to provide management with real-time data on ongoing employee satisfaction.
Additionally, we have implemented tools and platforms as a means to provide employees with feedback mechanisms and to provide management with real-time data and metrics regarding ongoing employee satisfaction.
About COVID-19
COVID-19 has not slowed us down or impeded our progress. To date, none of our staff has had a confirmed case of COVID-19 to our knowledge. However, we remain diligent and continue to be concerned about the potential impact of COVID-19 on our operations. As COVID-19 emerged and became classified as a pandemic by the WHO, Embark reacted swiftly and followed the guidance issued by the Government of Canada. As soon as March 13, 2020, we adopted the recommendations of health professionals and instituted mask wearing and social distancing. Detailed COVID-19 screening of individuals entering the facility was also initiated as part of Embark’s protocols.
About Embark Health Inc.
Embark Health Inc. is a leader in solventless cannabis extraction, with a focus on the formulation and production of advanced 2.0 products for the B2B, medical and adult-use markets. Embark continues to be at the forefront of production of concentrate products including bubble hash, traditional pressed hash, rosin, and dry sift. With the acquisition of Embark Nano Inc. (“Nano”, formerly, Axiomm Technologies Ltd.) in Q3 of 2020, Embark is preparing to launch the next generation of Cannabis 2.0 products. The acquired portfolio of products and formulations support the mass production and distribution of advanced 2.0 products including cannabis-infused beverages, topicals, edibles and water-soluble powders. For more information, please visit www.embarknano.com.
It is Embark’s mandate to pursue best in class production processes resulting in premium quality commercial and consumer extraction products. Embark Health Inc. is dedicated to unleashing the full potential of the cannabis plant through scientific approaches to extraction and the production of quality products to enhance everyday life. For more information, please visit www.embarkhealthinc.com