Emerald Health Therapeutics Applauds Government of Canada for Proposing Amendment to Cannabis Excise Tax in Federal Budget
March 20 2019 - 06:00AM
Emerald Health Therapeutics, Inc. (“Emerald” or the “Company”)
(TSXV: EMH; OTCQX: EMHTF) applauds the Government of Canada for
proposing to amend the excise tax calculation for cannabis in the
federal budget announced yesterday.
The implementation of the proposed revision
announced in the federal budget would result in the calculation of
the excise duty of ingestible cannabis and hemp products being
based on the quantity of THC in the products, as opposed to the
current tax set in relation to the product volume. Certain low-THC
products would also be subject to lower excise duties, which would
provide additional tax relief for cannabis products typically used
by individuals for medical purposes. If implemented, the proposed
changes are expected to come into effect on May 1, 2019. Emerald
believes that these revisions are likely to improve its profit
margins on the products it intends to produce from its contracts to
acquire harvested hemp. As previously announced, Emerald has
entered into contracts to purchase 500 acres of harvested hemp
(which contains very low levels of THC) in 2018 and up to 1000
acres of harvested hemp per annum from 2019 to 2022.
“We believe that the federal government’s
recommendation to revise the cannabis excise tax will reduce taxes
on the low-THC products Emerald intends to produce from its
contracted hemp harvest for medical use,” stated Dr. Avtar Dhillon,
President and Executive Chairman of Emerald. “We expect that this
proposed revision to the excise tax calculation will enhance our
opportunity to utilize our purchased hemp in an economically viable
way as feedstock for new cannabinoid-containing ingestible
products.”
Emerald previously announced partnerships with
industry leaders in extraction and technology to enhance biological
activity, its filing of patent applications, and its goal to
produce value-added cannabinoid-based products that provide
consumers with consistent product characteristics. Emerald has
already produced various high-CBD products and management believes
it is well-positioned to produce additional high-CBD, low-THC
value-added products from both cannabis and hemp.
About Emerald Health Therapeutics,
Inc.
Emerald Health Therapeutics, Inc. (TSXV: EMH;
OTCQX: EMHTF) is a Canadian licensed producer of medical and adult
use cannabis. It’s Pure Sunfarms 50% joint venture owns and
operates a sophisticated 1.1 million square foot greenhouse
cultivating high quality, low cost cannabis in the Lower Mainland.
Its wholly owned subsidiary. Verdélite Sciences Inc. is in the
process of completing a 75,000 square feet indoor facility near
Montreal, Quebec. Both facilities are rapidly expanding their
commercial production. Emerald has also secured approximately 500
acres of hemp harvest in 2018 and has contracted for approximately
1000 acres per annum from 2019 to 2022 with the goal of extracting
low-cost cannabidiol. Emerald’s team is highly experienced in life
sciences, product development, and large-scale agri-business 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 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 augmentation of capabilities; build out of the Verdalite
facility; production capacity of various facilities; and receipt of
hemp deliveries.
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; 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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