Emerald Completes Issuance of Shares in Lieu of Cash Due for Verdélite Acquisition
May 27 2019 - 8:00AM
Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX:
EMHTF) today announced that the vendors (the "Vendors") of
Verdélite Sciences, Inc. and Verdélite Property Holdings, Inc.
(collectively, "Verdélite") have received 2,129,707 shares of
Emerald (the "Shares") in lieu of $7.5 million of the $22.5 million
they were to receive as the final payment for their shares of
Verdélite. Each Share was valued at $3.5216, the five-day
volume-weighted average price of the common shares of Emerald on
the TSX Venture Exchange (the "TSXV"), discounted 10%, calculated
as of April 30, 2019. The agreement to receive shares in lieu of
cash was previously announced by the Company on May 1, 2019.
Issuance of the Shares was subject to approval
from the TSXV, which was received on May 13, 2019. The Shares are
subject to a hold period of four months and one day.
Separately, Punit Dhillon has temporarily
stepped down as a director of the Company in order to potentially
expedite Emerald license applications to Health Canada while Health
Canada processes Mr. Dhillon’s previously submitted normal course
application for security clearance to meet the requirements for
company directors under the Cannabis Act. Mr. Dhillon will continue
to serve as an observer to Emerald’s Board of Directors and will be
reappointed as a director upon his security clearance being
finalized.
About Emerald Health
Therapeutics
Emerald Health Therapeutics, Inc. is a Canadian
licensed producer of cannabis. Its 50%-owned Pure Sunfarms joint
venture in BC is licensed and fully planted in the first of its two
1.1 million square foot greenhouses. The capacity of each
greenhouse is estimated to exceed 75,000 kg of cannabis annually.
Emerald’s Verdélite operation in Saint Eustache, Québec is
completing the build-out of its 88,000 square foot indoor
cultivation facility and is scaling up production. Emerald has
contracted for approximately 1000 acres of hemp in 2019 to 2022
with the objective of extracting low-cost cannabidiol. Emerald has
secured exclusive strategic partnerships for large scale extraction
and softgel encapsulation, as well as for proprietary technology to
enhance cannabinoid bioavailability. Its team is highly experienced
in life sciences, product development, large-scale agri-business,
and marketing, and is focused on developing proprietary,
value-added cannabis products for medical and adult-use
customers.
Emerald is part of the Emerald Health group,
which represents a broad array of companies focused on developing
pharmaceutical, botanical, and nutraceutical products aimed at
providing wellness and medical benefits by interacting with the
human body’s endocannabinoid system.
Please visit www.emeraldhealth.ca for more information or
contact: Rob Hill, Chief Financial Officer (800) 757 3536 Ext. #
5
Emerald Investor Relations (800) 757 3536 Ext.
#5invest@emeraldhealth.ca
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.
Cautionary Note Regarding Forward-Looking
Statements: Certain statements made in this press release that are
not historical facts are forward-looking statements and are subject
to important risks, uncertainties and assumptions, both general and
specific, which give rise to the possibility that actual results or
events could differ materially from our expectations expressed in
or implied by such forward-looking statements. Such statements
include receipt of licenses and security clearance; expansion of
facilities; and receipt of hemp deliveries.
We cannot guarantee that any forward-looking
statement will materialize, and readers are cautioned not to place
undue reliance on these forward-looking statements. These
forward-looking statements involve risks and uncertainties related
to, among other things, failure to obtain regulatory approvals;
failure to obtain necessary financing; results of production and
sale activities; results of scientific research; regulatory
changes; changes in prices and costs of inputs; demand for labour;
demand for products; as well as the risk factors described in the
Company’s annual information form and other regulatory filings. The
forward-looking statements contained in this press release
represent our expectations as of the date hereof. Forward-looking
statements are presented for the purpose of providing information
about management's current expectations and plans and allowing
investors and others to obtain a better understanding of our
anticipated operating environment. Readers are cautioned that such
information may not be appropriate for other purposes. The Company
undertakes no obligations to update or revise such statements to
reflect new circumstances or unanticipated events as they occur,
unless required by applicable law.
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