Emerald Health Therapeutics’ Pure Sunfarms JV Expands Credit Facility with Existing Lender by up to $59M and Completes Addi...
April 03 2020 - 7:00AM
Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX:
EMHTF) announced that its Pure Sunfarms (“PSF”) joint venture has
finalized the expansion of its credit facility with its existing
lender to $59 million, including accordion provisions of $22.5
million. The expanded credit facility (the “Credit Facility”)
consists of a $7.5 million revolving operating loan (the
“Revolver”) and a $10 million term loan (the “New Term Loan”), in
addition to its existing $19 million term loan (the “Existing Term
Loan”). The New Term Loan is specifically designated for the 1.1
million square foot Delta 2 greenhouse while the Existing Term Loan
is specifically designated for the 1.1 million square foot Delta 3
greenhouse facility.
The $7.5 million Revolver and the $10 million
New Term Loan include an accordion provision that allows Pure
Sunfarms to request additional lender commitments of up to an
additional $7.5 million and $15 million, respectively, subject to
an additional lender entering the syndicate on or before May 30,
2020. Each of the components of the Credit Facility, including the
Existing Term Loan, mature on February 7, 2022.
As part of this transaction, Village Farms
International, Inc. has completed an additional investment in PSF
of $8 million, which reduces Emerald’s equity position in Pure
Sunfarms by 1.3% to 41.3%. Emerald continues to hold three of six
seats on Pure Sunfarms’ Board of Directors.
About Emerald Health
Therapeutics
Emerald Health Therapeutics, Inc. is committed
to cutting-edge cannabis science to create new consumer experiences
with distinct recreational, medical and wellness-oriented cannabis
and non-cannabis products. With an emphasis on innovation and
production excellence, Emerald’s three distinct operating assets
are designed to uniquely serve the Canadian marketplace and
international opportunities. These assets, all in full production,
include: its Richmond, BC-based organic-certified greenhouse
operation (78,000 square feet); Verdélite, its premium craft
cannabis production indoor facility in St. Eustache, Québec (88,000
square foot); and Pure Sunfarms, its 41.3%-owned joint venture in
Delta, BC, producing high quality, affordably priced products (1.1
million square feet). Its Emerald Naturals joint venture has
launched a new natural wellness product category with its
non-cannabis endocannabinoid-supporting product line and is
expanding distribution across Canada.
Please visit www.emeraldhealth.ca for more information or
contact: Jenn Hepburn, 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.
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, changes of law and regulations; changes of
government; failure to obtain regulatory approvals or permits;
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; failure of counter-parties to perform
contractual obligations; as well as the risk factors described in
Emerald’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. Emerald
undertakes no obligations to update or revise such statements to
reflect new circumstances or unanticipated events as they occur,
unless required by applicable law.
Emerald Health Therapeut... (TSXV:EMH)
Historical Stock Chart
From Jun 2024 to Jul 2024
Emerald Health Therapeut... (TSXV:EMH)
Historical Stock Chart
From Jul 2023 to Jul 2024