Investor agrees to also exercise $18 million in additional warrants
Emerald
Health Therapeutics, Inc. (TSXV:EMH) (OTCQX:EMHTF) ("Emerald" or the
“Company”) has closed its prospectus sale (the “Offering”) to a single
Canadian institutional accredited investor (the “Investor”) announced on
February 8, 2018. Pursuant to the Offering, the Company has issued
3,000,000 units (the “Units”) at a price per Unit of $6.00 for gross
proceeds of $18,000,000.
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 $7.00 per
Warrant Share for a period of six 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 other
recognized exchange is greater than $8.50 per Common Share for a period
of five 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 15th 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 for its
production and R&D-related growth plans, working capital and general
corporate purposes.
The Investor has also
agreed to exercise 3,000,000 warrants of the Company within three days
of closing of the Offering. These warrants, issued by the Company to the
Investor on January 9, 2018, are exercisable at a price of $6.00 per
Common Share at any time prior to January 9, 2021.
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 $6.00 per share, has also closed.
Emerald Health Therapeutics, Inc. (TSXV:EMH) (OTCQX:EMHTF) operates through Emerald Health Botanicals Inc. ("Botanicals"), a wholly owned subsidiary and Licensed Producer under Canada’s Access to Cannabis for Medical Purposes Regulations. Through Botanicals, Emerald is authorized to produce and sell dried medical cannabis flower and medical cannabis oil. It currently operates an indoor facility in Victoria, BC, and is building a 500,000 s.f. greenhouse on 32 acres in Metro Vancouver, with expansion potential to 1 million s.f. to serve the anticipated legal Canadian adult-use cannabis market starting in 2018. Emerald also owns 50% of Pure Sunfarms Inc., a partnership with Village Farms International Inc. that is converting an existing 1.1 million s.f. greenhouse in Delta, BC from growing tomatoes to growing cannabis. Emerald’s team is highly experienced in life sciences, product development and large-scale agribusiness. 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.
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