Emerald Health Therapeutics Inc OTCMKTS: EMHTF Completes Issuance of Shares in Lieu of Cash Due for Verdélite Acquisition

365

Emerald Health Therapeutics Inc OTCMKTS: EMHTF 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.

Emerald Health Therapeutics Inc OTCMKTS: EMHTF On May 27, 2019 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.

Emerald Health Therapeutics Inc OTCMKTS: EMHTF On May 24, 2019 has been appointed by the American Trade Association for Cannabis and Hemp (ATACH) to lead its International Affairs Council on CBD and Hemp in ATACH’s engagement with the US Food & Drug Administration (FDA) regarding policy pertaining to CBD-containing products and associated cross-border trade. The FDA is slated to begin public consultation on May 31 to discuss potential pathways for CBD products to come to market in the US.

“Emerald Health Therapeutics is one of Canada’s original Licenced Producers and has expertise on CBD extraction and associated regulatory development,” said Michael Bronstein, President of ATACH. “We look forward to leveraging Emerald’s knowledge and experience as we participate in the FDA process on how to best navigate and implement a potentially-new regime for products containing cannabinoids in the United States.”

“We are pleased to be asked to lead ATACH’s International Affairs Council on CBD and Hemp,” said Dr. Avtar Dhillon, President and Executive Chairman of Emerald. “We believe there is significant therapeutic and economic potential for CBD-related products generally and in the US, and we are eager to play a positive role in this policy formation process.”

Allan Rewak, VP Communications and Stakeholder Relations of Emerald, has been appointed as the Company’s formal representative to ATACH and will utilize his experience in the Canadian cannabis legalisation process to support the development of a reasonable and effective regulatory regime for CBD in the United States.

LEAVE A REPLY