VICTORIA, British Columbia, Dec. 07, 2018 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics, Inc. (TSXV:EMH; OTCQX:EMHTF) ("Emerald" or the “Company”) closed today its prospectus sale (the “Offering”) to a single Canadian institutional accredited investor (the “Investor”) announced on December 3, 2018. Pursuant to the Offering, the Company has issued 4,000,000 common shares of the Company (the "Common Shares") at a price per Common Share of $2.70, for gross proceeds of $10.8 million.
The Investor has an option (the “Option”) to acquire up to a maximum of 1,555,555 additional Common Shares at a price per Common Share of $2.70 for a period of ten business days from the closing date. This Option was increased from the previously announced 600,000 Common Shares. Complete exercise of the Option would add gross proceeds of $4.2 million.
The Company intends to use the net proceeds of the Offering to fund the completion of capital projects, research and development, working capital, and general corporate purposes.
The Common Shares 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 and National Instrument 44-102 Shelf Distributions.
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 completing the conversion of its 1.1 million square feet (25 acres) greenhouse in the Lower Mainland to cultivate cannabis and its Agro-Biotech operation in Québec is currently operating out of its 75,000 square feet indoor cannabis cultivation facility. Commercial production is expanding in both facilities. In addition, Emerald has 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 out of its hemp harvest. Emerald’s 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 http://www.emeraldhealth.ca for more information or contact:
Rob Hill, Chief Financial Officer
(800) 757 3536 Ext. #5
Investor Relations
(800) 757 3536 Ext. #5
invest@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 filing and effectiveness of the prospectus supplement; the use of proceeds from the Offering; the anticipated closing date of the Offering; 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, exercise of the Option by the Investor and use of the proceeds of the Offering 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.