Emerald Health Therapeutics Closes $18 Million Prospectus Sale
February 14 2018 - 09:52AM
Emerald Health Therapeutics, Inc. (TSXV:EMH) (OTCQX:EMHTF)
("Emerald" or the “Company”) has closed its prospectus sale (the
“Offering”) to a single Canadian institutional accredited investor
(the “Investor”) announced on February 8, 2018. Pursuant to the
Offering, the Company has issued 3,000,000 units (the “Units”) at a
price per Unit of $6.00 for gross proceeds of $18,000,000.
Each Unit consists of one common share of the
Company and one common share purchase warrant (a “Warrant”). Each
Warrant will entitle the Investor to acquire one common share of
the Company (a “Warrant Share”) at a price of $7.00 per Warrant
Share for a period of six months following the closing of the
Offering. In the event that the closing sale price of the Company’s
common shares (the “Common Shares”) on the TSX Venture Exchange or
other recognized exchange is greater than $8.50 per Common Share
for a period of five consecutive trading days at any time after the
closing of the Offering, the Company may accelerate the expiry date
of the Warrants by giving notice to the Investor and in such case
the Warrants will expire on the 15th day after the date on which
such notice is given by the Company.
The Units were offered by way of a shelf
prospectus supplement filed in all of the provinces of Canada,
except Quebec, pursuant to National Instrument 44-101 - Short Form
Prospectus Distributions.
The Company intends to use the net proceeds of
the Offering for its production and R&D-related growth plans,
working capital and general corporate purposes.
The Investor has also agreed to exercise
3,000,000 warrants of the Company within three days of closing of
the Offering. These warrants, issued by the Company to the Investor
on January 9, 2018, are exercisable at a price of $6.00 per Common
Share at any time prior to January 9, 2021.
The previously announced purchase by the
Investor of 2,000,000 Common Shares from Emerald Health Sciences
Inc. (“Sciences”), a control person of the Company, at a price of
$6.00 per share, has also closed.
Emerald Health Therapeutics, Inc.
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 that may provide wellness and
medical benefits by interacting with the human body’s
endocannabinoid system.
Please visit www.emeraldhealth.ca for more information or
contact:
Robert Hill, CFO(800) 757 3536 Ext.
#722invest@emeraldhealth.ca
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 exercise of the Investor’s existing warrants; the
development, expansion and conversion of greenhouse facilities; and
the starting of adult-use cannabis market in 2018.
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, the
ability of the Company to negotiate and complete future funding
transactions; variations in market conditions; 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.
For investor and media contacts:
invest@emerald.care
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.
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