Emblem Corp. (EMMBF) Announces $3 Million Strategic Equity Investment in Natura Naturals

Emblem Corp. (EMC.V) (EMC-WT.V) (EMMBF) (“Emblem” or the “Company”), announced today that it is making a strategic equity investment (the “Equity Investment”) into Natura Naturals Inc. (“Natura”), a 662,000 square foot licensed greenhouse cultivator of medical cannabis pursuant to Health Canada’s Access to Cannabis for Medical Purposes Regulations (“ACMPR”). The companies have also signed a three-year cannabis supply agreement (the “Agreement”) to provide Emblem up to 3,000kg of high-quality cannabis flower per year from Natura’s Phase 1 cultivation facility.

Based in Leamington, Ontario, Natura employs proprietary processes to produce high-quality cannabis in its state-of-the-art greenhouse facility. The first 155,000 square feet of the facility is currently being converted as part of its Phase 1 retrofit and is expected to be complete in August 2018 and capable of producing 15,000kg of cannabis per year. The Phase 2 conversion will retrofit the remaining 507,000 square feet for cannabis cultivation and is expected to bring total production capacity to approximately 70,000kg per year by mid-2019. Natura holds a genetic library of 32 cannabis strains, which will be made available to Emblem.

Equity Investment

Under the terms of the Equity Investment, Emblem will invest $3,000,000 in cash in Natura for 3,750,000 common shares of Natura and 3,750,000 common share purchase warrants exercisable at $1.05 for 24 months (subject to acceleration provisions). Post-closing, Emblem will own approximately 5% of Natura’s outstanding shares on a non-diluted basis, and 7% on a fully diluted basis.  Closing of the Equity Investment is subject to customary conditions and is expected to close later this week.

“We are extremely excited about the opportunities that our new-found Emblem partnership holds for us. With our first commercial LP sale, the future growth, venture possibilities, and business transactions that lie ahead for Natura seem very promising,” said Ben Nikolaevsky, President and CEO of Natura Naturals.

Supply Agreement

Emblem has signed a three-year supply agreement with Natura pursuant to which Natura will supply Emblem with up to 3,000 kg of high quality dried cannabis flower per year at preferred wholesale pricing. Initial product deliveries to Emblem are expected to commence in October, 2018 with a total of 750kg deliverable for the balance of 2018.  The Agreement increases Emblem’s total available cannabis by approximately 37.5% in 2018, and significantly accelerates Emblem’s product availability to coincide with the launch of the adult-use market in October 2018.

“Our partnership with Natura quickly accelerates our time to market, with an immediate increase in product volume, supporting both our medical and adult-use demand,” said Nick Dean, President and CEO of Emblem. “We have been very impressed with the Natura leadership team, their cultivation capabilities, and the quality of production they are achieving within their Phase 1 retrofit. Emblem has found a valuable partner in Natura and we are confident our relationship will continue to strengthen and grow as Natura completes Phase 2 of their retrofit, bringing online an additional 55,000 kgs of production in 2019.”

About Natura Naturals
Based in Leamington, Ontario, Natura Naturals is a licensed cultivator of medical cannabis pursuant to Health Canada’s Access to Cannabis for Medical Purposes Regulations (“ACMPR”). The company’s cultivation facility is capable of producing plants in a 662,000+ square feet greenhouse facility under optimal growing conditions. Natura grows high-quality hydroponic cannabis which can be used for various medical and recreational applications. Natura has an extensive genetics library and continues to develop innovative products for the Canadian and International marketplace.

About Emblem
Emblem, through its wholly-owned subsidiary Emblem Cannabis Corporation, is a fully integrated licensed producer and distributor of medical cannabis and cannabis derivatives in Canada under the Access to Cannabis for Medical Purposes Regulations (ACMPR). Emblem’s state-of-the-art indoor cannabinoid factory and research and development facility is located in Paris, Ontario. Led by an experienced management team of healthcare executives, accomplished marketing professionals, and cannabis experts, Emblem is focused on driving shareholder value through product innovation, brand relevance, and access to patient and consumer channels. Emblem is also the parent company of GrowWise Health Limited, one of Canada’s leading cannabis education services. Emblem trades under the ticker symbol EMC on the TSX Venture Exchange.