SAN DIEGO, CA, Oct. 03, 2022 (GLOBE NEWSWIRE) -- Further to its news release on July 11, 2022, Emerald Health Pharmaceuticals Inc. (“EHP” or the “Company”) has reached a settlement (the “Settlement”) with the United States Securities and Exchange Commission (the “SEC”) to resolve the SEC’s investigation of the alleged concealment of a paid promotion of the Company’s Regulation A offering in an investment newsletter.
“We believe this settlement with the SEC reflects the extent of our cooperation and remediation efforts and is an important step in enabling the Company to continue with the execution of its business strategy,” said Jim Heppell, Chairman of the Company.
The SEC has filed the proposed Settlement in the United States District Court for the Central District of California (the “Court”) today. The Settlement is subject to the Court’s approval.
Under the terms of the Settlement, the Company, without admitting or denying the allegations of the SEC, consented to the entry of an order (i) requiring the Company to pay a civil money penalty in the amount of US$517,955 to the SEC (payable over one year in four payments), and (ii) permanently enjoining the Company from violations of certain federal securities laws, including Section 10(b) of the Securities Exchange Act of 1934.
In settling this matter, the Company fully cooperated with the SEC throughout its investigation, and promptly undertook significant remedial efforts. These efforts included initiating an internal investigation, terminating certain personnel, terminating relationships with third parties involved in the alleged fraudulent conduct, reorganizing its finance department and adding internal accounting controls.
About Emerald Health Pharmaceuticals Inc.
Emerald Health Pharmaceuticals is developing novel product candidates for the treatment of CNS, autoimmune, and other diseases. The company has two families of patented new chemical entities that it has created through rational drug design to affect validated receptors and pathways in the body which are pertinent to targeted
diseases. Its first drug product candidate, EHP-101, is in a Phase 2 study for the treatment of systemic sclerosis, a severe form of scleroderma, and has met regulatory requirements to start a Phase II study for multiple sclerosis. Its second product candidate, EHP-102, is in preclinical development and is focused on treating Parkinson’s disease and Huntington’s disease. EHP-101 has received Orphan Drug Designation in the US and EU, as well as Fast-Track status by the US FDA for systemic sclerosis. EHP-102 has received Orphan Drug Designation in the US and EU for Huntington’s disease.
For more information, visit http://www.emeraldpharma.com or contact
info@emeraldpharma.com.
Forward Looking Statements
To the extent statements contained in this news release are not descriptions of historical facts regarding Emerald Health Pharmaceuticals Inc. they should be considered "forward-looking statements," as described in the private securities litigation reform act of 1995, that reflect management's current beliefs and expectations. You can identify forward-looking statements by words such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "goal," "hope," "hypothesis," "intend," "may," "plan," "potential," "predict," "project," "should," "strategy," "will," "would," or the negative of those terms, and similar expressions that convey uncertainty of future events or outcomes. Forward-looking statements contained in this news release include, but are not limited to, statements regarding: (i) the success and timing of our product development activities and clinical trials; (ii) our ability to develop our product candidates; (iii) our plans to research, discover, evaluate and develop additional potential product, technology and business candidates and opportunities; (iv) the anticipated timing of clinical data availability; (v) our ability to meet our milestones; (vi) our expectations regarding our ability to obtain and maintain intellectual property protection; and (vii) our ability to raise future financing. Forward-looking statements are subject to known and unknown factors, risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such forward-looking statements. Undue reliance should not be placed on forward-looking statements. We undertake no obligation to update any forward-looking statements. Emerald Health Pharmaceuticals' investigational drug products have not been approved or cleared by the FDA
