VICTORIA, BC, Nov. 16, 2016 /CNW/ - Emerald Health
Therapeutics Inc. (TSXV: EMH) ("Therapeutics") announced
today that it has completed its previously announced private
placement (the "Offering") of 4,411,764 units (a "Unit") of the
Company with Emerald Health Sciences Inc. ("Sciences"), a creditor
and major shareholder of Therapeutics at a price of $0.68 per Unit. Each Unit will consist of one
common share (each, a "Share") and one common share purchase
warrant with each warrant entitling the holder thereof to acquire
an additional Share of Therapeutics at a price of $0.85 per share for a period of five years from
the closing date.
In accordance with applicable securities laws, the Shares issued
to Sciences are subject to a 4-month hold period from the date of
issuance. As a result of the closing of the Offering, Sciences now
holds an aggregate of 45,646,555 Shares, representing 67.5% of the
issued and outstanding common shares of Therapeutics and 8,489,451
common share purchase warrants (each, a "Warrant"). Assuming the
exercise of the Warrants, Sciences would hold an aggregate of
54,136,006 Shares representing approximately 71.2% of the issued
and outstanding common shares of Therapeutics (on a
partially-diluted basis giving effect only to the exercise of the
Warrants).
As Sciences is an insider of the Company, the participation in
the Offering is considered to be a "related party transaction", as
defined under Multilateral Instrument 61-101 ("MI 61-101").
The Company has relied on the exemptions from the valuation and
minority shareholder approval requirements of MI 61-101 contained
in sections 5.5(b) and 5.7(a).
ON BEHALF OF THE BOARD
"Avtar Dhillon"
Executive Chairman
Emerald Health Therapeutics Inc.
Emerald Health Therapeutics wholly owns Emerald Health
Botanicals. Emerald Health Botanicals holds a License under the
Access to Cannabis for Medical Purposes Regulations
(Canada) to cultivate and sell
medical cannabis out of its facility located in Victoria, British Columbia.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Emerald Health Therapeutics, Inc.