Dr. Avtar Dhillon reports
EMERALD HEALTH THERAPEUTICS APPLAUDS GOVERNMENT OF CANADA FOR PROPOSING AMENDMENT TO CANNABIS EXCISE TAX IN FEDERAL BUDGET
Emerald Health Therapeutics Inc. is applauding the government of Canada for proposing to amend the excise tax calculation for cannabis in the federal budget announced yesterday.
The implementation of the proposed revision announced in the federal budget would result in the calculation of the excise duty of ingestible cannabis and hemp products being based on the quantity of THC (tetrahydrocannabinol) in the products, as opposed to the current tax set in relation to the product volume. Certain low-THC products would also be subject to lower excise duties, which would provide additional tax relief for cannabis products typically used by individuals for medical purposes. If implemented, the proposed changes are expected to come into effect on May 1, 2019. Emerald believes that these revisions are likely to improve its profit margins on the products it intends to produce from its contracts to acquire harvested hemp. As previously announced, Emerald has entered into contracts to purchase 500 acres of harvested hemp (which contains very low levels of THC) in 2018 and up to 1,000 acres of harvested hemp per annum from 2019 to 2022.
"We believe that the federal government's recommendation to revise the cannabis excise tax will reduce taxes on the low-THC products Emerald intends to produce from its contracted hemp harvest for medical use," stated Dr. Avtar Dhillon, president and executive chairman of Emerald. "We expect that this proposed revision to the excise tax calculation will enhance our opportunity to utilize our purchased hemp in an economically viable way as feedstock for new cannabinoid-containing ingestible products."
Emerald previously announced partnerships with industry leaders in extraction and technology to enhance biological activity, its filing of patent applications, and its goal to produce value-added cannabinoid-based products that provide consumers with consistent product characteristics. Emerald has already produced various high-CBD products and management believes it is well positioned to produce additional high-CBD, low-THC value-added products from both cannabis and hemp.
About Emerald Health Therapeutics Inc.
Emerald Health Therapeutics is a Canadian licensed producer of cannabis. Its 50-per-cent-owned Pure Sunfarms joint venture in British Columbia is completing the conversion of its 1.1-million-square-foot (25-acre) greenhouse for cannabis cultivation in the Lower Mainland and its verdelite operation in Quebec is completing the buildout of its 88,000-square-foot indoor cultivation facility.
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