Emerald Health Therapeutics Announces At-the-Market Equity Program
March 28 2019 - 12:21PM
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Emerald Health Therapeutics, Inc. (“Emerald” or the “Company”)
(TSXV:EMH; OTCQX:EMHTF) today announced that it has established an
at-the-market equity program (“ATM Program”) that allows the
Company to issue common shares from treasury (“Common Shares”)
having an aggregate gross sales price of up to $39 million to the
public from time to time, at the Company’s discretion, at the
prevailing market price when issued on the TSX Venture Exchange
(“TSXV”) or on any other marketplace for the Common Shares in
Canada. The ATM Program is effective until the earlier of April 13,
2021 or completion of the sale of the maximum amount of shares
thereunder and will be activated from time to time at the Company’s
discretion if and when required based on the Company’s working
capital requirements and capital expenditures and relative cost of
other funding options.
Sales of the Common Shares through the ATM
Program will be made pursuant to the terms of an equity
distribution agreement dated as of the date hereof (“Equity
Distribution Agreement”) with GMP Securities L.P. (the
“Agent”).
Sales of Common Shares will be made through
“at-the-market distributions” as defined in National Instrument
44-102 - Shelf Distributions on the TSXV or on any other existing
marketplace for the Common Shares in Canada. The Common Shares will
be distributed at the prevailing market prices at the time of the
sale and, as a result, prices may vary among purchasers and during
the period of distribution. The ATM Offering is being made pursuant
to a prospectus supplement dated March 27, 2019 (the “Prospectus
Supplement”) to the Company’s short form base shelf prospectus
dated March 13, 2019 (the “Base Shelf Prospectus”).
The Company expects to use the net proceeds of
the ATM Program, if any, to fund a portion of the costs for the
completion of its capital projects, for research and development,
working capital and general corporate purposes.
The Prospectus Supplement (together with the
related Base Shelf Prospectus) is available under the Company’s
profile on the SEDAR website maintained by the Canadian Securities
Administrators at www.sedar.com.
The Company has applied for conditional approval
from the TSXV for the listing of the Common Shares to be offered
under the ATM Program.
This news 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 jurisdiction in which such offer,
solicitation, or sale would be unlawful.
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 licensed to cultivate in 1.03M square feet of its
1.1 million square foot greenhouse. This facility has been scaling
up production over the last four quarters and will be fully planted
in April. Emerald’s Verdélite operation in Québec is completing the
build out of its 88,000 square feet indoor cultivation facility and
is scaling up production. 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 has secured exclusive strategic partnerships for
large scale extraction and softgel encapsulation, as well as for
proprietary technology to enhance cannabinoid bioavailability. Its
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 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 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 anticipated sale and
distribution of Common Shares; the volume and timing of the sale
and distribution of Common Shares; the intended use of the net
proceeds of any offering of Common Shares by the Company; the
anticipated benefits and impact of the ATM Program; the amount of
hemp to be supplied to the Company; the completion of Verdélite
facility; rapid expansion of production; amount of hemp purchased
per annum and the extraction of low-cost cannabidiol from
hemp.
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, risks associated with receipt of regulatory and stock
exchange approvals; the Company’s and the Agent’s ability to
successfully complete the offering and the sale of Common Shares
under the ATM Program; regulatory approvals; failure to obtain
necessary financing; regulatory changes; demand for products;
efficacy of products; results of scientific research; future
distribution agreements; failure of counterparties to perform
contractual obligations; as well as the risk factors described in
the Company’s annual information form, Prospectus Supplement and
Base Shelf Prospectus 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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