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Emerald Health Therapeutics Closes $16.8 Million Prospectus Sale

CBJ Newsmakers

VICTORIA, British Columbia, May 23, 2018 (GLOBE NEWSWIRE) — Emerald Health Therapeutics, Inc. (TSX-V:EMH) (“Emerald” or the “Company”) has closed its prospectus sale (the “Offering”) to a single Canadian institutional accredited investor (the “Investor”) announced on May 15, 2018. Pursuant to the Offering, the Company has issued 4,000,000 units (the “Units”) at a price per Unit of $4.20 for gross proceeds of $16,800,000.

Each Unit consists of one common share of the Company and one common share purchase warrant (a “Warrant”). Each Warrant will entitle the Investor to acquire one common share of the Company (a “Warrant Share”) at a price of $5.20 per Warrant Share for a period of eighteen months following the closing of the Offering. In the event that the closing sale price of the Company’s common shares (the “Common Shares”) on the TSX Venture Exchange or such other principal stock exchange on which the Common Shares are then listed is greater than $6.50 per Common Share for a period of twenty consecutive trading days at any time after the closing of the Offering, the Company may accelerate the expiry date of the Warrants by giving notice to the Investor and in such case the Warrants will expire on the 30th day after the date on which such notice is given by the Company.

The Units were offered by way of a shelf prospectus supplement filed in all of the provinces of Canada, except Quebec, pursuant to National Instrument 44-101 – Short Form Prospectus Distributions.

The Company intends to use the net proceeds of the Offering to fund the completion of its recently acquired Agro-Biotech facility in Quebec, for working capital, and for general corporate purposes.

The previously announced purchase by the Investor of 2,000,000 Common Shares from Emerald Health Sciences Inc. (“Sciences”), a control person of the Company, at a price of $4.20 per share, has also closed.

Emerald Health Therapeutics, Inc.

Emerald Health Therapeutics (TSX-V:EMH) 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 anticipated legal Canadian adult-use cannabis market starting in 2018. Emerald owns 50% of a joint venture with Village Farms International, Inc. that is converting an existing 1.1 million square foot greenhouse in Delta, BC to grow cannabis. It owns Agro-Biotech, a Quebec-based licensed cannabis grower with a 75,000 square foot indoor facility and is adding a 500,000 square foot greenhouse in Metro Vancouver. Emerald’s team is highly experienced in life sciences, product development and large-scale agribusiness, 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:

Robert Hill, CFO
(800) 757 3536 Ext. #722
invest@emeraldhealth.ca

Cautionary Statements Regarding Forward Looking Information

Certain statements in this press release constitute forward-looking statements, within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, are “forward-looking statements”.

We caution you that such “forward-looking statements” involve known and unknown risks and uncertainties that could cause actual and future events to differ materially from those anticipated in such statements. Forward-looking statements include but are not limited to the use of proceeds of the Offering; the development, expansion and conversion of greenhouse facilities; and the starting of adult-use cannabis market in 2018.

Emerald Health Therapeutics Inc. does not intend, and does not assume any obligation, to update these forward-looking statements except as required by law. These forward-looking statements involve risks and uncertainties relating to, among other things, the ability of the Company to negotiate and complete future funding transactions; variations in market conditions; and other risk factors described in the Company’s second amended and restated base shelf prospectus dated January 31, 2018, prospectus supplement dated May 16, 2018, and the Company’s other filings with the applicable Canadian securities regulators, which may be viewed at  www.sedar.com. Actual results may differ materially from those expressed or implied by such forward-looking statements.

For investor and media contacts:

invest@emerald.care

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.

 

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