Emerald to Issue Shares in lieu of Cash due under for Verdélite Acquisition
May 01 2019 - 7:00AM
Emerald Health Therapeutics, Inc. (TSXV:EMH) (“Emerald” or the
“Company”) today announced that the vendors (the
"
Vendors") of Verdélite Sciences,
Inc. and Verdélite Property Holdings, Inc. (collectively,
"
Verdélite") have elected to
receive $7.5 million of the $22.5 million they were to receive as
the final payment for their shares of Verdélite in shares of
Emerald valued on the five-day volume-weighted average price of the
common shares of Emerald on the TSX Venture Exchange, discounted
10%, calculated as of April 30, 2019. See the Company's news
release dated May 2, 2018 for more details on the Verdélite
acquisition. Emerald is to pay the remaining $15 million of
the purchase price to the Vendors on or before May 30, 2019.
Issuance of the Shares is subject to approval
from the TSX Venture Exchange. The Shares will be subject to a hold
period of four months and one day.
This press release will not constitute an offer
to sell or the solicitation of an offer to buy nor will 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.
About Emerald Health
Therapeutics, Inc.
Emerald Health Therapeutics, Inc. is a Canadian
licensed producer of cannabis. Its 50%-owned Pure Sunfarms joint
venture in BC is licensed to cultivate in 1.03 million square feet
of the first of it’s 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 Québec is
completing the build out of its 88,000 square foot indoor
cultivation facility and is scaling up production. Emerald secured
over 500 acres of hemp harvest in 2018 and has contracted for
approximately 1000 acres 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 developed to
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
Investor Relations Manager(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 statements relating to the anticipated issuance date of the
Shares; future payments to the Vendors; production capacity of
various facilities; expansion of facilities; increased commercial
production; anticipated production costs; implementation of future
business plans; and receipt of hemp deliveries.
Actual results may vary from forward-looking
statements. 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, 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; future
distribution agreements; failure of counterparties to perform
contractual obligations; 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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