William Sumner
Emerald Health Therapeutics, Inc. (EMHTF), along with its subsidiary company Emerald Health Sciences, Inc., announced today the completion of a letter of intent to form a joint venture with DMG Blockchain Solutions Inc., a blockchain supply chain management solution developer and leading crypto mining hosting provider.
Named CannaChain Technologies, the joint venture will develop a cannabis industry focused, blockchain-based, supply chain management system and e-commerce marketplace.
“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, in a statement. “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
As one of the earliest licensed producers under Canada’s under Access to Cannabis for Medical Purposes Regulations, Emerald brings to the joint venture provide industry expertise and know-how while DMG Blockchain Solutions will use its knowledge of blockchain to build a supply management system design for the unique requirements of the cannabis industry.
Serving cannabis producers, distributors, shippers, government agencies, and consumers; the parties aim to leverage blockchain’s ability to create an immutable record to instill an enhanced trust of origin, quality, and safety.
The platform will aid cannabis business owners to adhere to Health Canada’s reporting requirements by logging each step in the supply chain on blockchain; creating an irrefutable record of a cannabis product’s journey from seed to sale. Regulatory reporting requirements would be automated.
The system will be built off of an existing open source blockchain platform, which should allow for cross-industry collaboration and integration that can support global business transactions. Likewise, the e-commerce marketplace would be based on the platform and facilitate the sale of a broad product selection.
As no definitive terms have been agreed to, the parties intend to commence negotiation of definitive documentation relating to CannaChain; with key terms such as ownership of the joint venture, fees and commissions still needing to be finalized. Development of the platform will not begin until the final terms have been settled and definitive documentation has been executed.
Cannabis Blockchain Craze
Emerald is the latest cannabis company to jump into blockchain technology. mCig, MassRoots and India Globalization Corp. have all decided to expand into blockchain technology.
