Emerald Health Therapeutics Secures Long-term Supply of Hemp for CBD Extraction
September 26 2018 - 7:00AM
Emerald Health Therapeutics, Inc. (TSXV:EMH; OTCQX:EMHTF)
(“Emerald”) has agreed to purchase from Emerald Health Hemp Inc.
(EHH) CBD-containing hemp biomass for extraction into CBD oil. EHH
has established agreements to purchase approximately 500 acres of
harvested hemp chaff, plant material consisting mainly of flower
and leaf, in Manitoba and Prince Edward Island in 2018,
with a plan to expand field operations in 2019. Emerald has signed
an agreement with EHH to purchase approximately 500 acres of chaff
in 2018 and approximately 1,000 acres in 2019 to 2022, with an
option to renew for an additional two-year period. The hemp chaff
will be processed via Emerald’s exclusive alliance with Factors
R&D Technologies Ltd., a division of Factors Group of
Nutritional Companies Inc., which has extensive extraction
experience and large capacity.
In conjunction with Bill C-45, Health Canada
recently issued an exemption to holders of Industrial Hemp licenses
to begin collecting, drying, storing and transporting the chaff of
hemp. After October 17, farmers will be able to sell hemp chaff to
licensed processors under Bill C-45.
“We see non-smoked, non-psychoactive CBD
consumption as a major growth opportunity in both the medical and
adult-use market in Canada, and our Factors Group alliance uniquely
positions us with the largest biomass extraction and softgel
encapsulation facility in Canada to produce value-added products to
serve this market,” said Chris Wagner, CEO of Emerald. “Our intent
is to secure significant low-cost cannabinoid supply to serve all
our manufacturing and marketing goals and hemp is expected to be
our lowest cost source of CBD. We are very pleased with the rapid
advancement of our Pure Sunfarms production joint venture with
Village Farms and our St. Eustache facility in Quebec. Our
collaboration with Emerald Health Hemp now expands our ability to
produce CBD products.”
“Canada is one of the largest producers of
hemp in the world and with Bill C-45 the value of hemp will
continue to grow,” said the Honourable Robert L. Henderson,
Minister of Agriculture and Fisheries for the Province of Prince
Edward Island. “I am pleased that farmers in Prince Edward Island
are embracing the commercial opportunities that this plant brings
to the region with the investment and assistance of businesses like
Emerald. We will encourage and support our farmers as this industry
matures, while continuing to implement appropriate policies in
our Province to protect the public health and safety of
our citizens.”
Emerald is finalizing the terms of an exclusive
arrangement with Factors R&D Technologies Ltd. (FTI) to
initially provide Emerald with access to a facility with operating
extraction infrastructure capable of up to 1 million kg of biomass
processing and 600 million softgel capsule production capacity
annually. Apart from providing pharmaceutical-grade,
industrial-scale manufacturing and expertise, the plan for this
collaboration is to also leverage the Factors Group’s decades of
experience in product development, formulation and innovation.
FTI is a division of Factors Group of
Nutritional Companies Inc., Canada’s largest nutritional supplement
marketer and manufacturer, and has over 1 million square feet of
production facilities, R&D, and quality control laboratories
and distribution centres. Factors Group has established deep roots
and relationships in Canada and worldwide in the nutrition industry
and sells its products under multiple brands.
EHH is a wholly owned subsidiary of Emerald
Health Sciences, which also owns approximately 32% of the issued
and outstanding shares of Emerald Health Therapeutics, Inc.
About Emerald Health Therapeutics,
Inc.
Emerald Health Therapeutics, Inc. (TSXV: EMH;
OTCQX: EMHTF; Frankfurt: TBD) is a Licensed Producer under Canada’s
Access to Cannabis for Medical Purposes Regulations and produces
and sells dried cannabis and cannabis oil for medical purposes.
Emerald owns 50% of Pure Sunfarms, which is converting a licensed
existing 1.1 million square foot greenhouse in Delta, BC, and is in
commercial production. It owns Agro-Biotech, a Québec-based
licensed cannabis grower with a 75,000 square foot indoor facility
and is planning to add a 500,000 square foot greenhouse in Metro
Vancouver. Emerald’s team is highly experienced in life sciences,
product development, large-scale agri-business, and marketing, and
is focused on developing value-added cannabis-based products with
potential wellness and medical benefits. 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:Rob Hill, Chief Financial Officer(800) 757
3536 Ext. #5
Ray Lagace, Investor Relations Manager(800) 757
3536 Ext. #5invest@emeraldhealth.ca
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Regulation Services Provider (as that term is definedin 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 legalization of nonmedicinal cannabis; production capacity
of various facilities; expansion of facilities; and anticipated
production costs.
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
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