Emerald Health Therapeutics Announces $10.8 Million Prospectus Sale
December 03 2018 - 6:00AM
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Emerald Health Therapeutics, Inc. (TSXV:EMH) ("Emerald" or the
“Company”) has entered into a binding term sheet with a single
Canadian institutional accredited investor (the “Lead Investor”)
under which the Lead Investor has agreed, subject to certain
customary conditions, to purchase 4,000,000 common shares of the
Company (the "Common Shares") at a price of $2.70 per Common Share
for gross proceeds of $10,800,000 (the "Offering"). The Offering
may be increased by an additional 600,000 Common Shares for total
aggregate gross proceeds of up to $12,420,000.
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 will be qualified under a
shelf prospectus supplement to be filed by Emerald in each of the
provinces of Canada, except Quebec, prior to closing in accordance
with National Instrument 44-101 Short Form Prospectus Distributions
and National Instrument 44-102 Shelf Distributions.
The closing date of the Offering is expected to
be on or about December 7, 2018, and is subject to certain
conditions including, but not limited to, the Lead Investor being
satisfied with the results of its due diligence, no material
adverse change in the affairs of the Company, and the receipt of
all necessary approvals, including the approval of the TSX Venture
Exchange and the applicable securities regulatory authorities.
This press release will not constitute an offer
to sell or the solicitation of an offer to buy nor will there be
any sale of the securities in any state in which such offer,
solicitation, or sale would be unlawful. The securities being
offered have not been, nor will they be, registered under the
United States Securities Act of 1933, as amended, and may not be
offered or sold in the United States absent registration or an
applicable exemption from the registration requirements of the
United States Securities Act of 1933, as amended, and applicable
state securities laws.
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 a sophisticated 1.1 million square feet
greenhouse and its Agro-Biotech operation in Québec is completing a
75,000 square feet indoor facility. Commercial production is
expanding in both facilities. Emerald has secured over 500 acres of
hemp harvest in 2018 and has contracted for approximately 1000
acres in 2019 to 2022 with the goal of extracting low-cost
cannabidiol. 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 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 http://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 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, failure to meet the conditions of closing of the Offering;
uncertainty with respect to the completion of the Offering; filing
of the shelf prospectus supplement; the ability to obtain
applicable regulatory approval for the Offering; failure to obtain
regulatory approvals; failure to settle final documentation;
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.
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