Emblem Corp (EMC.V) to begin trading Monday, December 12.

 

Emblem Corp. logo

Emblem updated investors Friday with the statement:

Further to its press release dated December 7, 2016, the Company announces that it expects to close today its previously announced non-brokered private placement of units for gross proceeds of $787,500 (the “Private Placement”). Each unit will be comprised of one common share of the Company (a “Common Share”) and one-half of one Common Share purchase warrant, with each whole warrant entitling the holder thereof to acquire one Common Share for a period of thirty-six months from the date of issuance at an exercise price of $1.75 per Common Share. Closing of the Private Placement remains subject to final approval of the TSX Venture Exchange (the “Exchange”) and other standard closing conditions.

From a press release last week I think the Company sums up the opportunity for investors very clearly, stating:

Emblem’s unique pharmaceutical-like cannabinoid formulation approach is focused on optimizing strain selection and greatly expanding acceptance of medical marijuana therapy by both patients and healthcare professionals. It’s always been known that Cannabinoids have real therapeutic value, as evidenced by Cesamet, Marinol and Sativex all having been approved as prescription drugs. The active components in cannabis are extracted, purified, and incorporated into advanced dosage formulations.


And in case you missed it in our earlier article on Emblem (which you can read here),there’s a great Q&A by the BBC with the President of Emblem’s Pharmaceutical division, John H. Stewart you should read: Ex-big pharma executive behind OxyContin sells medical marijuana.


I’ll say again that I’m a buyer of Emblem on Monday. For those who don’t know me yet, I recognized the opportunity of 3D printing stocks and bought them heavily in 2012.  I then launched 3DPrintingStocks.com in the spring of 2013…well in advance of the enormous parabolic moves they made in 2014-early 2015. I believe we are in the first inning of a 12-24 month move in the cannabis space, and I think Emblem has the right management, the right business model, tight share structure, (6 million float), and support from founders/early investors to make the company a top tier cannabis stock going forward.


dariohealth-logo

DarioHealth (DRIO), a pioneer in the mobile health space with a focus on diabetes management, announced the company had over 4,000 new sign ups from the U.S. alone during November’s Diabetes awareness month. I checked with the company for clarification and learned that “sign ups” means people with the Dario Smart Glucose Meter in the hands of end users. The device comes with 50 strips and data history has shown “that approx. 75% of those turn into strip buyers in 30-45 days after.”

Doing the math, average strip sales/customer is $300/year. 75% of 4,000 = 3,000 x $300 = estimate for $900,000 in new annual sales originating from the U.S. market alone from the month of November. To put this in perspective, for the entire Q3, DarioHealth sold about 5,500 Smart Glucose Meters in the U.S (see Q3 press release), and the company turned a (modest) gross profit.

In September DarioHealth also launched an online store in Canada in collaboration with A&D Medical, a global leader in connected health and biometric measurement devices and services, and Bayshore Specialty Rx Ltd.’s online pharmacy, Diabetes Express, and the Company’s Smart Glucose System is for sale in major pharmacies in Canada such as London Drugs (see Dario™ diabetes management tool turns your mobile device into a glucose monitor and more— now available in Canada).

As a result of fast growth in the U.S. market, the Company’s September launch in Canada, (plus an Australian launch in July), it’s clear that Q4 should be another record for the company. There are an estimated 415 million people worldwide living with diabetes according to the International Diabetes Federation, and DRIO is well-positioned to realize significant growth in helping people better manage their diabetes. In fact, they’re doing just that already.

Read more about DarioHealth in my initial article. Shares have gained 13% since then, and have a long way to go as more launches of  Dario’s Smart Glucose System take place around the globe, and what I think will be a very, very strong Q4 is reported.


Lastly, congratulations again to our subscribers in New Age Beverage Cop. (NBEV)!

Shares closed at a new high Friday of $4.17, a gain of 940% from our recommendation at .40 in April.

As I wrote back in April, the company had the following ingredients to drive shareholder value:

  • a laser-like focus dedicated to an unconsolidated, yet booming market
  • the right product that has strong competitive advantages in the market
  • a balance sheet that allows the company to focus on the new, or previously underutilized direction
  • the right management with the right connections and experience in the space to make the decisions that will drive success

And NBEV “remains one to watch” for the same reasons.

I’m pointing out NBEV here because both Emblem Corp. (EMC.V) and DarioHealth (DRIO) have within their respective management teams, business models, and market opportunities, the same ingredients for success going forward into 2017.


 

Best wishes for profitable investing,

Blue Line Protection - gary

 

 

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