Emblem Corp (CVE:EMC)(OTCMKTS:EMMBF) Looking To Rebound

Emblem Corp (CVE:EMC)(OTCMKTS:EMMBF) had been one of last year’s most highly anticipated offerings. This is due to the fact that we see Canada as the hottest country right now for cannabis investors. It has the most favorable regulatory environment for cannabis in the world and we expect recreational marijuana legalization some time this Spring.The Canadian Federal Task Force has already issued its recommendations on how to legalize recreational marijuana use. The proposals include a minimum purchase age of 18, federal oversight on production, provincial governments charged with retail distribution and maintaining criminal offenses for illicit production and trafficking. The Task Force was lead by Canada’s former attorney general and offered more than 80 recommendations on how Canada could become the largest developed-world country to legalize marijuana.The IPO of Emblem Corp really came at a short term top in the market. Investors that bought in on the IPO are currently sitting on losses as investors across the cannabis space have been booking profits. Emblem Corp was a little late to the party as investor that got in early on Canopy Growth Corp and Aphria Inc have seen huge gains in their portfolios.The good news is that the pullback in Emblem Corp is a good opportunity for investors that didn't get in on the IPO. As we take a closer look, Emblem Corp has rebound written all over it and we still believe we're in the early stages of the Canadian cannabis bull run.First up, a little background on the company. Emblem is licensed under the Access to Cannabis for Medical Purposes Regulations to cultivate and sell medical marijuana. Emblem carries out its principal activities producing marijuana from its facilities in Paris, Ontario pursuant to the provisions of the ACMPR and the Controlled Drugs and Substances Act (Canada) and its regulations. Emblem was incorporated under the CBCA on October 8, 2014 under the name KindCann Holdings Limited, then changed its name to Emblem Corp on September 1, 2016. Emblem came public via a merger with Saber Capital Corp, a capital pool company.Last December, Health Canada amended Emblem's license under the ACMPR to permit the production of cannabis oils. In anticipation of this, Emblem invested over C$1 million in its extraction and purification platform including a supercritical CO2 extractor, purpose built rooms, and analytical equipment. The company also stockpiled a significant amount of both bud and trim for extraction.Emblem is constructing a 2,500 sq. ft. dedicated extraction and formulation development laboratory on its property in Paris, ON. Additionally, Emblem has hired three scientists to work exclusively in this division to pursue the development and manufacture of advanced dosage forms of cannabinoids. Emblem's John Stewart said:

"Cannabinoids have real therapeutic value, as evidenced by the products Cesamet, Marinol and Sativex all having been approved as prescription drugs by Health Canada. In addition, there have been numerous reports published in the scientific literature pertaining to the medical use of cannabinoids - with evidence of efficacy in patients with chronic pain, multiple sclerosis, nausea, neuropathic pain, PTSD and wasting syndrome. The active components in cannabis will be extracted, purified and incorporated into advanced formulations, in order to enhance their therapeutic utility."

Last week, Emblem announced that it retained the consulting services of Nate Nienhuis for its Canadian cannabis operations. Nienhuis is known as a "cannabis guru" and one of the industry's foremost experts on indoor cannabis cultivation and cannabis extraction. CEO Gordon Fox pretty much summed up the value Nienhuis brings to the table when he said:

"This is a major development for our Company. Mr. Nienhuis is recognized throughout North America as one of the pre-eminent experts in cannabis horticulture and cannabis extraction. He is also an engineer and has consulted extensively on environmental systems, lighting systems and building envelope design for closed-box cannabis production facilities. He has the exact skills that Emblem needs to design and operate the facilities that will fulfill our mandate of producing the highest quality cannabis products for the Canadian market."

Currently trading with a market cap of C$117 million, Emblem Corp is valued at a fraction to industry giant Canopy Growth Corp's C$1.77 billion market cap. This, in our opinion, makes Emblem Corp a great opportunity for small cap investors to get in on a cannabis name with plenty of run room left. With Canopy's acquisition of Mettrum, we also see Emblem as a prime takeover target for Canopy, Aphria or Aurora Cannabis Inc. This makes Emblem a good risk/reward opportunity for investors looking to play the Canadian Green Rush.We will be updating our subscribers as soon as we know more. For the latest updates on EMC/EMMBF, sign up below!Disclosure: We have no position in EMC/EMMBF and have not been compensated for this article.