Emerald Health Therapeutics Announces Completion of Pure Sunfarms CAD$20 Million Credit Facility with Bank of Montreal and Fa...
February 13 2019 - 06:00AM
Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV:EMH;
OTCQX:EMHTF) today announced that its 50%-owned joint venture for
large-scale, low-cost, high-quality cannabis production, Pure
Sunfarms Corp. (“Pure Sunfarms”), has entered into a credit
agreement with Bank of Montreal (“BMO”) as agent and lead lender
and Farm Credit Canada (“FCC”) as lender (together with BMO, the
“Lenders”) in respect of a CAD$20 million secured non-revolving
term loan (the “Credit Facility”). Pure Sunfarms intends to use the
funds available under the Credit Facility to finance the final
costs of converting its 1.1 million square foot greenhouse for
cannabis production, the vast majority of which was completed in
January of this year. The funds available under the Credit Facility
may also be used for general corporate purposes.
“Pure Sunfarms is proud to enter into this
Credit Facility with these two highly respected institutional
lenders,” said Mandesh Dosanjh, President and Chief Executive
Officer, Pure Sunfarms. “This is truly an exciting time for our
organization and we are appreciative of the support of each as Pure
Sunfarms establishes itself as a vertically integrated supplier to
the Canadian cannabis market.”
“As Pure Sunfarms approaches operational
positive cash flow, completion of a non-dilutive financing with
these financial institutions is an excellent accomplishment,” said
Dr. Avtar Dhillon, President and Executive Chairman of Emerald. “We
look forward to Pure Sunfarms’ rapid quarterly growth through this
year as it comes fully onstream.”
The Credit Facility, which matures on February
7, 2022, is secured by Pure Sunfarms’ greenhouse facility, and
contains customary financial and restrictive covenants.
With conversion of all growing areas, totaling
more than one million square feet, of its greenhouse facility
completed, Pure Sunfarms expects to be in production in all
quadrants of the facility in the first quarter of this year. The
technologically-advanced Delta 3 greenhouse design is based on
decades of large-scale, low-cost agricultural production experience
and extensive cannabis expertise, resulting in a state-of-the-art
facility with 16 grow rooms optimized for year-round harvesting
(more than 80 harvests annually).
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 foot (25 acre) greenhouse for cannabis cultivation in the
Lower Mainland and its Verdélite operation in Québec is completing
the build-out of its 75,000 square feet indoor cultivation
facility. Commercial production is expanding in both facilities.
Emerald 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 (CBD). 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 www.emeraldhealth.ca for more
information or contact:Rob Hill, Chief Financial Officer(800) 757
3536 Ext. #5
Investor Relations (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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