New Emerald operation, one of only six licensed producers in Québec, adds indoor growing capacity of approximately 10,000 kg per annum
Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV:EMH) (OTCQX:EMHTF) (Frankfurt:TBD)
announced today that it has acquired (the “Acquisition”) all of the
issued and outstanding securities of 8611165 Canada Inc., an Access to
Cannabis for Medical Purposes Regulations (ACMPR) Licensed Producer
located in Saint-Eustache, Québec, and its affiliate 9353-8460 Québec
Inc. (together, “Agro-Biotech”). Agro-Biotech’s assets include a Health
Canada cultivation license, land, and 75,000 sq. ft. purpose-built
facility. The Acquisition enhances this local startup’s resources to
serve Québec consumers with high-quality cannabis products in the
anticipated legalized adult-use market, and further strengthens
Emerald’s ability to market throughout eastern Canada and nationwide.
This
indoor hydroponic growing facility, which has access to very low-cost
energy and water, will be capable of high-yielding production of
Emerald’s unique cannabis strains, several of which are currently being
grown in Agro-Biotech’s facility. Agro-Biotech’s extensive experience in
cannabis cultivation complements Emerald’s downstream product
development focus, which is backed by its depth of pharmaceutical
industry R&D and clinical development expertise, and extensive
consumer packaged goods and alcohol beverage marketing experience.
Agro-Biotech
has built out 20,000 sq. ft. of this facility and expects to have
50,000 sq. ft. equipped for indoor cannabis cultivation by year end.
Emerald intends to meet the requirements for an ACMPR sales license for
this facility before the end of August. This operation is estimated to
have production capacity of 3,000 kg of cannabis in 2018 and have full
production capacity exceeding 10,000 kg following completion of the
build-out by year end.
With the anticipated
introduction of legalized recreational cannabis in Canada, Emerald’s
acquisition of Agro-Biotech expands its capacity to meet increased
consumer demand in the second half of 2018. Emerald is currently also
retrofitting its 50-percent owned 1.1 million square foot greenhouse in
Delta, BC, which has its cultivation license and is expected to have
over 46,000 kg of production capacity by 2019 and more than 75,000
kilograms of growing capacity when the facility reaches full production.
Emerald is also constructing a 500,000-square foot hybrid indoor and
greenhouse cannabis growing facility in Metro Vancouver.
“On
behalf of the entire team, we are extremely grateful to the city of
Saint-Eustache, which has been a supportive and welcoming community, and
we look forward to increasing local employment and contributing to the
area’s economy,” said Avtar Dhillon, MD, Executive Chairman of Emerald.
“Québec’s and the city’s affordable electricity and water will enable us
to produce unique, high quality cannabis at very low cost. We are
excited to become part of an established presence in Québec that will
allow us to be highly responsive to customers in this province and
beyond.”
“Agro-Biotech is one of only six
Licensed Producers in Québec, Canada’s second largest province with a
population of over 8.4 million. Our experienced and talented team
collectively has over 60 years of cannabis growing and broad
horticulture experience,” said Yan Dignard, President, RPIC/QPIC, of
Agro-Biotech. “We did this deal as we respect Emerald’s capabilities and
look forward to working with their team to build a strong and
differentiated cannabis product line in Québec and across Canada.”
Under
the terms of the Acquisition, Emerald will pay an aggregate purchase
price of $90 million to the shareholders of Agro-Biotech, half in cash
and half in shares. One-half of the cash consideration was paid on
closing and the remainder will be payable on May 1,
2019. All of the shares were issued upon closing, however, half of the
shares will be held in escrow until May 1, 2019, pursuant to an escrow
agreement.
About Emerald Health Therapeutics, Inc.
Emerald Health Therapeutics (TSXV:EMH) (OTCQX:EMHTF) (Frankfurt:TBD)
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. It is adding a 500,000 square foot greenhouse
in Metro Vancouver 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.
Emerald’s team is highly experienced in life sciences, product
development and large-scale agribusiness. Emerald Health Therapeutics is
part of the Emerald Health group,
which includes multiple companies focused on developing cannabis and
cannabinoid products with potential wellness and medical benefits.
Legalization to use medicinal cannabis in the ACMPR is gaining in popularity and all types of clinics are opening to help in the process. Now learn how many plants can you grow with a medical card in canada through licencetogrow.ca
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