Emerald Health Therapeutics Completes Full Acquisition of Licensed Dealer Northern Vine to Advance Product Innovation
July 19 2018 - 5:56AM
Emerald Health Therapeutics, Inc. (TSXV:EMH) (OTCQX:EMHTF)
(Emerald) has signed a definitive agreement (“Agreement”) to
acquire the remaining shares of Northern Vine Canada Inc. (Northern
Vine), owned by Abattis Bioceuticals Corp. (Abattis) (CSE:ATT)
(OTC:ATTBF), for $2 million in cash and $4 million in shares of
Emerald stock. This transaction increases Emerald’s ownership of
Northern Vine from 65% to 100%. Northern Vine is a Licensed Dealer
(LD) under the provisions of the Canadian Controlled Drugs and
Substances Act.
“Product innovation is a primary pillar of
Emerald’s global business strategy. The acquisition of Northern
Vine allows us to leverage its dealer license and research and
development facility to advance our research plans to develop
cannabis formulations supporting new products for both recreational
purposes and to treat a broad spectrum of human conditions and
diseases,” said Chris Wagner, CEO of Emerald. “The dealer license
would also enable Emerald to cost effectively source
non-dried-flower cannabis products from suppliers in other
countries.”
“Northern Vine will operate independently of
Emerald and is committed to serving all clients, including Licensed
Producers and patient-growers. Legalization of cannabis for medical
and recreational purposes is expected to drive demand for
analytical testing services to assess potency and concentration of
toxic materials. The global market is expected to exceed $1 billion
in 20181. We expect significant growth potential for Northern Vine
in the Canadian analytical testing marketplace.”
An LD is permitted to conduct certain activities
that Licensed Producers (LP) are not permitted under Access to
Cannabis for Medical Purposes Regulations (ACMPR), such as
importing/exporting cannabis oils, as well as preparing the
manipulation, formulation, dosage form, strength or package size of
cannabis products, including mixtures with other additives,
controlled substances, and non-controlled substances. In addition,
it allows Emerald to participate in the growing market for cannabis
analytical testing, which is expected to grow in conjunction with
increasing cannabis production volumes in Canada.
In November 2017, Emerald acquired 53% of
Northern Vine from Abattis for $2 million. In May 2018, Emerald
increased its stake to 65% for an additional $2.75 million.
The Agreement also includes a milestone payment
in the form of common shares of Emerald valued at $4 million if
Northern Vine and/or Emerald receive gross revenue of $10 million
from the sale of products or services introduced by Abattis.
About Emerald Health Therapeutics,
Inc.
Emerald Health Therapeutics (TSXV:EMH)
(OTCQX:EMHTF) (Frankfurt:TBD) is a Licensed Producer under Canada’s
Access to Cannabis for Medical Purposes Regulations and produces
and sells dried cannabis and cannabis oil for medical purposes.
Emerald is preparing to serve the fully legalized Canadian
adult-use cannabis market starting October 17, 2018. Emerald owns
50% of Pure Sunfarms, which is converting a licensed existing 1.1
million square foot greenhouse in Delta, BC and is now in
commercial production. It owns Agro-Biotech, a Québec-based
licensed cannabis grower with a 75,000 square foot indoor facility
and is planning to add a 500,000 square foot greenhouse in Metro
Vancouver. Emerald’s team is highly experienced in life sciences,
product development, large-scale agri-business, and marketing, and
is focused on developing value-added cannabis-based products with
potential wellness and medical benefits. Emerald is part of the
Emerald Health group, which is broadly focused on developing
pharmaceutical, botanical, and nutraceutical products that may
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
Ray Lagace, 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 legalization of nonmedicinal cannabis; production capacity
of various facilities; expansion of facilities; and anticipated
production costs.
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, failure to obtain 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; 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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