Source: Emerald Health Therapeutics, Inc.
Joint venture Cannachain Technologies would leverage blockchain technology designed to achieve unprecedented seed-to-sale provenance, safety and efficiency for the legal cannabis industry
Emerald Health
Therapeutics, Inc. (TSXV:EMH) (OTCQX:EMHTF) and Emerald Health Sciences,
Inc. (together, “Emerald”) and DMG Blockchain Solutions Inc. (“DMG”)
have completed a letter of intent to form a joint venture, to be named
CannaChain Technologies (“Cannachain”), to develop a foundational
blockchain-based supply chain management system and e-commerce
marketplace for the legal cannabis industry.
From
Licensed Producers, through testing, distribution and other steps, to
the consumer, the cannabis supply chain includes many touchpoints.
CannaChain’s supply chain management system platform will aim to provide
total transparency and assurances for end consumers about where a
cannabis product came from and regarding an array of related attributes.
The platform will also assist in ensuring adherence to Health Canada
reporting requirements. By logging each step along the supply chain on
the blockchain - a decentralized, timestamped, and unhackable digital
ledger - this ground-breaking platform is expected to provide an
irrefutable record outlining the journey the product has made, from
beginning to end.
“There are notable new
applications of blockchain technology to validate and assure the source,
quality and integrity of products such as diamonds, wine, and art,
along with coffee and other food products,” said Avtar Dhillon, MD,
Executive Chairman of Emerald Health Therapeutics. “Cannabis is also a
prime industry in which to apply blockchain supply management based on
the broad spectrum of plant and growing attributes, as well as product
innovation potential; the growing trend of medical and in some cases
recreational legalization, with the need for licensing as well as high
security and confidence; and the possibility to start off such an
initiative with relatively small groups of pertinent stakeholders.
Canada’s established experience with medical cannabis regulations also
lends it to new innovation in areas such as supply chain operations.”
In
this joint venture, Emerald would provide its expertise and
relationships as one of the earliest Canadian Licensed Producers under
Access to Cannabis for Medical Purposes Regulations. DMG Blockchain
Solutions, a blockchain supply chain management solution developer and
leading crypto mining hosting provider, would build and deploy a
blockchain supply chain management solution designed to meet the
challenges and opportunities of the cannabis industry. The Cannachain
solution is intended to provide extensive plant, growing, third-party
testing, and handling data, and offer enhanced trust of origin, quality,
and safety based on blockchain’s ability to maintain immutable records
as cannabis products flow from seed-to-sale through the supply chain.
The solution would serve relevant stakeholders including producers,
distributors, shippers, government agencies, and consumers.
Adrian
Glover, DMG’s Director of Software Engineering, commented, “Supply
chain management for cannabis is an ideal use case for blockchain’s
tamper-proof ledger technology. We are excited to partner with Emerald
and, through the formation of CannaChain Technologies, to provide such
an integral solution for the Canadian medicinal market.”
The
parties also intend that Cannachain would develop an e-commerce
marketplace based on the blockchain-based supply chain management system
to facilitate the sale of a broad product selection backed by
unprecedented supporting data and trust.
These
solutions would be designed to also provide significant advantages with
respect to administration of transactions, payments and reporting.
CannaChain’s
supply chain management platform will leverage an existing open source
blockchain platform, enabling cross-industry collaboration capable of
supporting global business transactions with major technology,
financial, and supply chain companies. These tools will enable smart
contract functionality, imperative to the automation of trust.
Regulatory reporting requirements would be automated by the platform,
making for a seamless, supply chain management solution for Licensed
Producers.
The parties intend to commence
negotiation of definitive documentation relating to CannaChain and the
development of the supply chain management solution. Key terms such as
ownership of the joint venture, fees and commissions have not been
finalized at this stage. Development of the supply chain management
solution will not commence until after final terms have been settled and
definitive documentation has been executed.
About DMG Blockchain Solutions
DMG Blockchain Solutions Inc.
is a full service blockchain and cryptocurrency company that manages,
operates and develops end-to-end solutions to monetize the blockchain
ecosystem. DMG intends to be the global leader in crypto mining hosting,
Mining as a Service (MaaS), crypto mining, forensics and diversified
blockchain platform development.
About Emerald Health Therapeutics
Emerald
Health Therapeutics, Inc. (TSXV:EMH) (OTCQX:EMHTF) operates through
Emerald Health Botanicals Inc. ("Botanicals"), a wholly owned subsidiary
and Licensed Producer under Canada’s Access to Cannabis for Medical
Purposes Regulations. Through Botanicals, Emerald is authorized to
produce and sell dried medical cannabis flower and medical cannabis oil.
It currently operates an indoor facility in Victoria, BC, and is
building a 500,000 s.f. greenhouse on 32 acres in Metro Vancouver, with
expansion potential to 1 million s.f. to serve the anticipated legal
Canadian adult-use cannabis market starting in 2018. Emerald also owns
50% of Pure Sunfarms Inc., a partnership with Village Farms
International Inc. that is converting an existing 1.1 million s.f.
greenhouse in Delta, BC from growing tomatoes to growing cannabis.
Emerald’s team is highly experienced in life sciences, product
development and large-scale agribusiness. Emerald is part of the Emerald Health group,
which is broadly focused on developing pharmaceutical, botanical and
nutraceutical products designed to provide wellness and medical benefits
by interacting with the human body’s endocannabinoid system.
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