/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
VICTORIA, April 20, 2017 /CNW/ -Emerald Health
Therapeutics Inc. (TSXV: EMH) ("Emerald" or the
"Company") is pleased to announce the closing today of its
public offering (the "Offering") announced on April 10 and 11, 2017. Pursuant to the
Offering, the Company has issued 13,170,000 units (the "Units") at
a price per Unit of $1.85 (the
"Offering Price"), for gross proceeds of $24,364,500. Eight Capital (the
"Underwriter") acted as underwriter for the Offering.
The Company also granted the Underwriter an over-allotment
option to purchase up to an additional 1,975,500 Units at the
Offering Price, exercisable in whole or in part, at any time on or
prior to the date that is 30 days following the closing of the
Offering. If this option is exercised in full, an additional
$3,654,675 will be raised pursuant to
the Offering and the aggregate proceeds of the Offering will be
$28,019,175. Such over-allotment
option remains outstanding and has not been exercised as of the
date of this news release.
Each Unit consists of one common share of the Company (a
"Share") and one-half of one common share purchase warrant (each
full warrant, a "Warrant"). Each Warrant entitles the holder
thereof to acquire one Share at a price of $2.60 per Share for a period of 24 months
following the closing of the Offering. In the event that the
closing price of the Company's Shares on the TSX Venture Exchange,
or such other principal Canadian stock exchange on which the Shares
are then listed, is greater than $3.50 per Share for a period of 20 consecutive
trading days, the Company may accelerate the expiry date of the
Warrants by giving notice to the holders thereof and in such case
the Warrants will expire on the 30th day after such notice is
given.
Emerald issued to the Underwriter a total of 395,100
compensation options in connection with the Offering. Each
such compensation option entitles the holder to acquire a Unit at a
price of $1.85 per Unit for a period
of 24 months following the closing of the Offering.
The Company intends to use the net proceeds of the Offering to
accelerate facility expansion, to carry out research and
development and for working capital and general corporate
purposes.
The Units were offered by way of a base shelf prospectus and a
shelf prospectus supplement (together, the "Prospectus") filed in
all of the provinces of Canada,
except Quebec.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful. The securities being offered have not been,
nor will they be, registered under the
United States Securities Act of 1933, as amended, and
may not be offered or sold in the United
States absent registration or an applicable exemption from
the registration requirements of the
United States Securities Act of 1933, as amended, and
applicable state securities laws.
Emerald Health Therapeutics Inc.
Emerald Health Therapeutics, Inc. operates primarily through
Emerald Health Botanicals Inc. ("Botanicals"), a wholly owned
subsidiary of the Company and a Licensed Producer under the Access
to Cannabis for Medical Purposes Regulations (the "ACMPR").
Botanicals is authorized to cultivate and sell both dried medical
cannabis flowers and medical cannabis oils in Canada. Botanicals currently operates an
indoor cultivation facility in Victoria,
British Columbia, and plans to construct a much larger
purpose built hybrid greenhouse facility on 32 acres in metro
Vancouver. Botanicals prides
itself on being one of Canada's
most medically focused licensed producers and on having one of the
industry's most qualified management teams with respect to
pharmaceutical drug discovery, development and distribution.
Botanicals intends to capture unique niches in both the medical and
future adult use cannabis markets through its proprietary strains,
defensible intellectual property, and superb client experience.
Please visit http://www.emeraldhealth.ca/ for more
information.
Cautionary Statements Regarding Forward Looking
Information
Certain statements in this press release constitute
forward-looking statements, within the meaning of applicable
securities laws. All statements that are not historical
facts, including without limitation, statements regarding future
estimates, plans, programs, forecasts, projections, objectives,
assumptions, expectations or beliefs of future performance, are
"forward-looking statements".
We caution you that such "forward-looking statements" involve
known and unknown risks and uncertainties that could cause actual
and future events to differ materially from those anticipated in
such statements. Forward-looking statements include, but are not
limited to, the exercise of the over-allotment option and the
receipt of the proceeds thereof, the use of proceeds from the
Offering and construction of facilities.
Emerald Health Therapeutics Inc. does not intend, and does not
assume any obligation, to update these forward-looking statements
except as required by law. These forward-looking statements involve
risks and uncertainties relating to, among other things, variations
in market conditions; the Underwriter's discretion as to whether to
exercise the over-allotment option and other risk factors described
in the Prospectus and the Company's other filings with the
applicable Canadian securities regulators, which may be viewed at
www.sedar.com. Actual results may differ materially from those
expressed or implied by such forward-looking statements.
"Neither 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.