Emerald Health Therapeutics Inc.

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Emerald Health Therapeutics is a Health Canada Licensed Producer of medical cannabis. A vertically integrated, seed-to-sale enterprise, Emerald has combined core competencies from decades of experience in pharmaceutical innovation with large-scale agriculture expertise.

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Emerald Health Therapeutics Inc.

lockPrivateGroup

Emerald Health Therapeutics is a Health Canada Licensed Producer of medical cannabis. A vertically integrated, seed-t......

people7 Members       (0)

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8020 Admin

3 hours ago

8020 Admin posted a press release Emerald Health Therapeutics' Joint Venture Partner Withdraws Purported $5.94 Million Investment in Pure Sunfarms in EMERALD HEALTH THERAPEUTICS INC.

Emerald continues to hold 50% of Pure Sunfarms


VANCOUVER, British Columbia, Jan. 17, 2020 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF) today announced that Village Farms International, Inc. ("Village Farms") has withdrawn its attempt to make an unsupported  additional equity contribution in their joint venture, Pure Sun Farms Corp. (“PSF”). Village Farms has rescinded the attempt and has requested and received a refund of the $5.94 million it advanced to PSF in November 2019.


The previously announced arbitration proceedings between the parties remain in process with respect to Emerald’s right to set-off a $5.94 million payment owed by Emerald to PSF against a portion of the more than $13 million currently owed by PSF to Emerald under its shareholder loan. A final decision on the arbitration is expected in summer 2020. Emerald continues to own 50% of the outstanding shares of PSF.


“We are pleased that this issue has been resolved in Emerald’s favour and we will rely on the ongoing arbitration process to resolve the remaining issues,’’ said Riaz Bandali, President and CEO of Emerald.


Payments to Pure Sunfarms


On December 13, 2019, Emerald advanced $940,000 to PSF as part of its agreement to pay an aggregate of $25.0 million in connection with the exercise of the joint venture's acquisition of the Delta 2 greenhouse. It also advanced its required final payment of $710,000 on January 15, 2020. No further amounts are payable by Emerald under the D2 option agreement.


About Emerald Health Therapeutics


Emerald Health Therapeutics, Inc. is committed to creating new consumer experiences with recreational and wellness-oriented cannabis products. With an emphasis on innovation and production excellence, Emerald has built a platform of distinct operating assets designed to uniquely serve the Canadian marketplace and international opportunities. Its 50%-owned PSF operation in British Columbia, with high quality, affordably priced products, is in full production at its first 1.1 million square foot greenhouse operation, Delta 3. PSF’s second 1.1 million square foot greenhouse, Delta 2, is currently being retrofitted for the cultivation of cannabis. Emerald’s Verdélite premium craft operation is fully licensed and in full production in its 88,000 square foot indoor facility in Québec. Its Metro Vancouver health and wellness-oriented organic greenhouse and outdoor operation has completed planting in the first of two 78,000 square foot buildings. Its Emerald Naturals joint venture is creating a completely new wellness product category with its non-cannabis endocannabinoid-supporting product line and is expanding distribution across Canada.


Please visit www.emeraldhealth.ca for more information or contact:

Jenn Hepburn, Chief Financial Officer
(800) 757 3536 Ext. #5


Emerald Investor Relations
(800) 757 3536 Ext. #5
invest@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: the resolution of any disputes involving Emerald, Village Farms and/or PSF; payment of amounts owed to Emerald; growth and performance of PSF; obtaining required regulatory approvals; expansion of distribution of endocannabinoid-supporting products; production and processing capacity of various facilities; expansion of facilities; and anticipated production costs.


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, changes of law and regulations; changes of government; failure to obtain regulatory approvals or permits; 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 counter-parties to perform contractual obligations; as well as the risk factors described in Emerald’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. Emerald 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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8020 Admin

11 days ago

8020 Admin posted a press release Emerald Health Therapeutics Announces Second Tranche of $4.5 Million Financing in EMERALD HEALTH THERAPEUTICS INC.

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES


VANCOUVER, British Columbia, Jan. 06, 2020 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF), has entered into a binding term sheet with certain institutional accredited investors (the “Investors”) under which the Investors have agreed, subject to certain customary conditions, to purchase 10,344,827 units of Emerald (each, a "Unit") at a price of $0.29 per Unit for total gross proceeds of $3,000,000 (the "Offering"). These Units will represent the remainder of the financing previously announced on December 16, 2019, however the securities to be issued under the Offering will be offered by way of a shelf prospectus supplement (the “Prospectus Supplement”) to be filed in all of the provinces of Canada pursuant to National Instrument 44-102 – Shelf Distributions and will not be subject to a hold period.


Each Unit will consist of one common share of Emerald (each, a "Common Share") and one common share purchase warrant (each, a "Warrant"). Each Warrant will entitle the Investor to acquire one common share of Emerald (each, a "Warrant Share") at a price of $0.385 per Warrant Share for a period of five years following the closing of the Offering.


The Company intends to use the net proceeds of the Offering for general working capital purposes.


The closing date of the Offering is scheduled to be on or about January 13, 2020 and is subject to certain customary conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and applicable securities regulatory authorities.


Emerald has also reached an agreement with the holder of the Convertible Debentures issued on September 10, 2019 to settle accrued interest on the Convertible Debentures to December 31, 2019 in the amount of $383,562 by issuing an additional 1,322,627 Common Shares (the “Debt Shares”) at a deemed value of $0.29 per share. The Debt Shares will also be qualified under the Prospectus Supplement. Issuance of the Debt Shares is subject to approval of the TSX Venture Exchange.


This press 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 state in which such offer, solicitation, or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws.


About Emerald Health Therapeutics


Emerald Health Therapeutics, Inc. is committed to creating new consumer experiences with recreational and wellness-oriented cannabis products. With an emphasis on innovation and production excellence, Emerald has built a platform of distinct operating assets designed to uniquely serve the Canadian marketplace and international opportunities. Its 50%-owned Pure Sunfarms (PSF) operation in British Columbia, with high quality, affordably priced products, is in full production at its first 1.1 million square foot greenhouse operation, Delta 3. PSF’s second 1.1 million square foot greenhouse, Delta 2, is planned to be in full production by the end of 2020. Emerald’s Verdélite premium craft operation is fully licensed and in full production in its 88,000 square foot indoor facility in Québec. Its Metro Vancouver health and wellness-oriented organic greenhouse and outdoor operation has completed planting in the first of two 78,000 square foot buildings. Its Emerald Naturals joint venture is creating a completely new wellness product category with its non-cannabis endocannabinoid-supporting product line and is expanding distribution across Canada.


Please visit www.emeraldhealth.ca for more information or contact:

Jenn Hepburn, Chief Financial Officer
(800) 757 3536 Ext. #5


Emerald Investor Relations
(800) 757 3536 Ext. #5
invest@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: closing of the Offering and issuance of the Debt Shares; the use of proceeds raised from the Offering; obtaining required regulatory approvals; production and processing capacity of various facilities; expansion of facilities; anticipated production costs; and creation of a new product line.


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, changes of law and regulations; changes of government; failure to obtain regulatory approvals or permits; 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 counter-parties to perform contractual obligations; as well as the risk factors described in Emerald’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. Emerald 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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8020 Admin

25 days ago

8020 Admin posted a press release Emerald Health Therapeutics Enters into Multi-Year Extraction and White Label Service Agreement with Valens in EMERALD HEALTH THERAPEUTICS INC.

Emerald also completes payments under its joint venture agreement with Pure Sunfarms


VANCOUVER, British Columbia, Dec. 23, 2019 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF) has entered into a multi-year agreement (the "Agreement") with Valens GroWorks Corp. (“Valens” or “The Valens Company”) (TSXV: VLNS; OTCQX: VLNCF) to contract cannabis extraction and white-label product development services.


Under the Agreement, which has a 4-year term, Emerald will supply Valens with a minimum of 10,000 kg of cannabis and hemp biomass annually for processing on a fee for service basis into premium quality resins and distillates using Valens’ leading proprietary extraction and processing methods. Valens will also provide white label services including formulation, mixing and filling for product formats such as vaporizers, softgels and tinctures. Emerald expects to make its first shipment to Valens in Q1 of 2020. Valens currently holds all required licensing from Health Canada to carry out its obligations under the Agreement.


“We are excited to partner with Emerald to provide our extraction and white label expertise to bolster their supply chain,” said Tyler Robson, CEO of Valens GroWorks. “Emerald is focused on an incredibly important medical cannabis patient program for individuals in need across Canada. We look forward to working closely with the team at Emerald as they scale their operations and expand their product portfolio for years to come.”


“We are pleased to have Valens as one of our strategic manufacturing partners, and look forward to bringing the variety of products we will generate with them to market,” said Riaz Bandali, CEO of Emerald. “Beyond being an industry leader in extraction, formulation, and other services, Valens’ cost-effective end-to-end fulfillment solution can help transition our novel product ideas into tangible products in a faster and more cost-effective manner.”


Other developments


On December 13, 2019, Emerald advanced $940,000 to its Pure Sunfarms joint venture as part of its agreement to pay an aggregate of $25.0 million in connection with the exercise of the Joint Venture's acquisition of the Delta 2 greenhouse. The Company also intends to advance the final payment of $710,000 due in January 2020.


About Valens GroWorks


Valens GroWorks Corp. is a multi-licensed, vertically-integrated cannabis company focused on being the partner of choice for leading Canadian and international cannabis brands by providing best-in-class, proprietary services including CO2, ethanol, hydrocarbon, solvent-less and terpene extraction, analytical testing, formulation and white label product development. Valens is the largest third-party extraction Company in Canada with an annual capacity of 425,000 kg of dried cannabis and hemp biomass at our purpose-built facility in Kelowna, British Columbia, which is in the process of becoming European Union (EU) Good Manufacturing Practices (GMP) compliant.  Additionally, our subsidiary Valens Labs is a Health Canada licensed ISO 17025 accredited cannabis testing lab providing sector-leading analytical services and has partnered with Thermo Fisher Scientific to develop a Centre of Excellence in Plant-Based Science.  For more information, please visit http://valensgroworks.com. 


About Emerald Health Therapeutics, Inc.

Emerald Health Therapeutics, Inc. is committed to creating new consumer experiences with recreational and wellness-oriented cannabis products. With an emphasis on innovation and production excellence, Emerald has built a platform of distinct operating assets designed to uniquely serve the Canadian marketplace and international opportunities.


Emerald’s 50%-owned Pure Sunfarms (PSF) in Delta, BC, focused on high quality, affordably priced products, is in full production in its first 1.1M s.f. greenhouse, with a second 1.1M s.f. greenhouse planned to be in full production by the end of 2020. Emerald’s Verdélite premium craft operation is fully licensed and in full production in its 88,000 s.f. indoor facility in Québec. Its Metro Vancouver health & wellness-oriented organic greenhouse and outdoor operation has completed planting in the first of two 78,000 s.f. buildings. Its Emerald Naturals joint venture is creating a completely new wellness product category with its non-cannabis endocannabinoid-supporting product line and is expanding distribution across Canada.


Please visit www.emeraldhealth.ca for more information or contact:

Jenn Hepburn, Chief Financial Officer
1(800) 757 3536 Ext. #5


Emerald Investor Relations
(800) 757 3536 Ext. #5
invest@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.


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, changes of law and regulations; changes of government; 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 counter-parties 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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8020 Admin

1 month ago

8020 Admin posted a press release Emerald Health Therapeutics Announces Financing Transactions in EMERALD HEALTH THERAPEUTICS INC.


NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, British Columbia, Dec. 16, 2019 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF) announced today that it is carrying out a financing and entering into a shares for debt transaction.


Private Placement


Emerald intends to complete a non-brokered private placement (the "Private Placement"), in one or more tranches, of a minimum of 5,172,414 units of Emerald (each, a "Unit") and a maximum of 15,517,241 Units at a price of $0.29 per Unit, for gross proceeds of a minimum of $1,500,000 and a maximum of $4,500,000. Each Unit will consist of one common share of Emerald (each, a "Unit Share") and one common share purchase warrant (each, a "Warrant").


Each Warrant will entitle the holder thereof to acquire one common share of Emerald (each, a "Warrant Share") at a price of $0.385 per Warrant Share for a period of five years following the closing of the Private Placement. In the event that the closing sale price of Emerald’s common shares (“Shares”) on the TSX Venture Exchange, or such other principal exchange on which the Shares are then trading, is greater than $0.75 per Share for a period of ten consecutive trading days at any time after the closing of the Private Placement, Emerald may accelerate the expiry date of the Warrants by giving written notice to the holder thereof and in such case the Warrants will expire on the 15th day after the date on which such notice is given by Emerald.


Emerald Health Sciences Inc. ("Sciences"), a control person of Emerald, and certain directors and officers of Emerald have agreed, subject to certain customary conditions, to purchase an aggregate of 5,172,414 Units of the Private Placement for $1,500,000. It is anticipated that Sciences will purchase 4,687,941 Units, while directors and officers of Emerald will purchase an aggregate of 484,473 Units.


Emerald intends to use the net proceeds of the Private Placement for general working capital purposes. The Private Placement has been approved by the independent members of the board of directors of Emerald.


Shares for Debt


Emerald has also reached an agreement with Sciences (the "Debt Settlement”) to settle $3,000,000 (the "Debt") of the aggregate debt owed by Emerald to Sciences pursuant to a previously disclosed loan agreement between the parties as well as other related party transactions. Pursuant to the Debt Settlement, Emerald will satisfy the Debt by issuing 10,389,611 common shares of Emerald (each, a "Debt Share") at a deemed value of $0.29 per Debt Share. The Debt Settlement has been approved by the independent members of the board of directors of Emerald, who have determined that the fair market value of the securities being issued under the Debt Settlement and the consideration therefor are reasonable.


Secondary Offering


Sciences has advised the Company that Sciences has entered into a binding term sheet (the "Term Sheet") with a single Canadian institutional investor (the “Investor”) in connection with a secondary offering (the “Secondary Offering”) of Shares. Pursuant to the Term Sheet, the Investor will purchase 5,785,119 Shares (the “Secondary Shares”) from Sciences at a price of $0.235 per Secondary Share. Sciences will receive all of the net proceeds from the Secondary Offering.


In connection with the Secondary Offering, Emerald has agreed to file a shelf prospectus supplement qualifying the Secondary Shares for distribution in each of the provinces of Canada, in accordance with National Instrument 44-101 Short Form Prospectus Distributions and National Instrument 44-102 Shelf Distributions.


The closing date of the Debt Settlement, the initial tranche of the Private Placement and the Secondary Offering is scheduled to be on or about December 23, 2019, and is subject to certain customary conditions including, but not limited to, the receipt of all necessary approvals.


Sciences currently holds approximately 30,785,119 of the issued shares of Emerald and, upon completion of the initial tranche of the Private Placement, the Debt Settlement and the Secondary Offering, Sciences will hold approximately 23.4% of the issued and outstanding shares of Emerald, on an undiluted basis.


As Sciences is a control person of Emerald, the Debt Settlement and Sciences' participation in the Private Placement is considered to be a “related party transaction,” as defined under Multilateral Instrument 61-101 (“MI 61-101”). Emerald intends to rely on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(a) thereof.


This press 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 state in which such offer, solicitation, or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws.


About Emerald Health Therapeutics


Emerald Health Therapeutics, Inc. is committed to creating new consumer experiences with recreational and wellness-oriented cannabis products. With an emphasis on innovation and production excellence, Emerald has built a platform of distinct operating assets designed to uniquely serve the Canadian marketplace and international opportunities. Its 50%-owned Pure Sunfarms (PSF) operation in British Columbia, with high quality, affordably priced products, is in full production at its first 1.1 million square foot greenhouse operation, Delta 3. PSF’s second 1.1 million square foot greenhouse, Delta 2, is planned to be in full production by the end of 2020. Emerald’s Verdélite premium craft operation is fully licensed and in full production in its 88,000 square foot indoor facility in Québec. Its Metro Vancouver health and wellness-oriented organic greenhouse and outdoor operation has completed planting in the first of two 78,000 square foot buildings. Its Emerald Naturals joint venture is creating a completely new wellness product category with its non-cannabis endocannabinoid-supporting product line and is expanding distribution across Canada.


Please visit www.emeraldhealth.ca for more information or contact:

Jenn Hepburn, Chief Financial Officer
(800) 757 3536 Ext. #5


Emerald Investor Relations
(800) 757 3536 Ext. #5
invest@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: closing of the Debt Settlement, the Private Placement and the Secondary Offering; the use of proceeds raised from the Private Placement; obtaining required regulatory approvals; production and processing capacity of various facilities; expansion of facilities; receipt of hemp deliveries; and anticipated production costs.


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, changes of law and regulations; changes of government; failure to obtain regulatory approvals or permits; 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 counter-parties to perform contractual obligations; as well as the risk factors described in Emerald’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. Emerald 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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8020 Admin

2 months ago

8020 Admin posted a press release Emerald Health Therapeutics Reports Third Quarter 2019 Financial Results; Sales Double Third Quarter in a Row in EMERALD HEALTH THERAPEUTICS INC.

50% owned JV, Pure Sunfarms, achieves fourth consecutive quarter of positive EBITDA, all-in cost of production of C$0.63 per gram, gross margin of 69% and EBITDA margin of 73%


VANCOUVER, British Columbia, Dec. 02, 2019 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF) reported financial results for the quarter and nine-month period ended September 30, 2019. Full versions of the Company’s unaudited condensed, interim consolidated financial statements and MD&A can be found on SEDAR at www.sedar.com.


Highlights


Emerald



  • Net sales doubled to $9.3M from the prior quarter.

  • Net loss of $17.5M impacted by $2.8M inventory write down and decrease of $9.1M in fair value adjustments of biological assets.

  • Total SG&A expenses of $10.1M lower than Q2 expenses of $12.4M.

  • Second consecutive quarter of positive adjusted EBITDA at $2.4M in Q3 2019.

  • $5.5M positive working capital shows improvement from ($4.2M) working capital in the previous quarter.


Pure Sunfarms (50%-owned JV financials are not consolidated into Emerald financials)



  • Net sales were $24.0M in Q3 and were $71.5M year-to-date (Sept. 30). Sales volume was almost 50% higher than the previous quarter, reaching approximately 12,000 kg. YTD volume was approximately 24,600 kg. Sales for Q3 consisted primarily of dried flower sold to other licensed producers. Late in Q3, Pure Sunfarms began shipping branded packaged product to the Ontario Cannabis Store.

  • Gross margin before non-cash adjustments to the fair value of inventory and biological assets was 69%.

  • EBITDA was $18.2M, an EBITDA margin of 73%. YTD EBITDA was $44.3M, or 62%.

  • Net cash and cash equivalents as of September 30 was $16.1M, up from $2.4M as of December 31, 2018.

  • Net loss of $2.4M reflects a ($12.6M) non-cash adjustment to the fair value of inventory and biological assets. YTD net income was $46.2M.

  • All-in production cost of $0.63 per gram, compared to $0.65 per gram in Q2.

  • Emerald recognized ($1.2M) as its 50% share of the joint venture compared to $14.5M in Q2. The loss in Q3 reflected a ($8.7M) non-cash adjustment to the fair value of inventory and biological assets.


Key Initiatives and Accomplishments



  • Expanding shipments in ten provinces and territories, facilitating revenue growth from $2.1M in all of 2018 to $17.4M in the first nine months of 2019.

  • Pure Sunfarms (PSF) has become one of the most competitive producers of high-quality, affordably priced cannabis in Canada, and is shipping into Ontario and BC, with Alberta starting in early 2020. PSF is now expanding its production footprint with the conversion of its second 1.1M s.f. greenhouse, which is expected to harvest its first crop in Q2 2020.

  • With licensing and planting recently completed at its wholly-owned indoor premium Québec facility, Verdélite, and in the first of its two organic greenhouses in Metro Vancouver, Emerald anticipates an increase in cannabis production with approximately 7,500kg of production targeted for these facilities in 2020.

  • Emerald has seen success with oil and pre-roll products, along with the introduction of its non-cannabis Endo product line through Emerald Health Naturals, and continues to advance product development toward the commercialization of new brands and products in 2020.

  • The Company completed a restructuring during Q3 and into Q4, with a reduction to its workforce and an internal reorganization for streamlined operations and decreased expenditures going into fiscal 2020.


“Emerald continues to refine its focus and drive to commercialize its key operational assets in 2020,” said Riaz Bandali, President and Chief Executive Officer of Emerald. “Our primary asset, our 50%-owned Pure Sunfarms joint venture, has rapidly distinguished itself as a high-performing asset. We are putting our energy into building out complementary business opportunities with distinct positioning to meet the needs of adult-use and wellness-oriented consumers, and taking the steps to realize positive cash flow and achieve profitability in 2020.”


Financials Results & Capital Resources


Selected quarterly financial information


The following table summarizes selected quarterly financial information for the Company, which was derived from annual financial statements prepared in accordance with IFRS or interim financial statements prepared in accordance with IFRS applicable to the preparation of interim financial statements, IAS 34, Interim Financial Reporting:



Read more here:  https://quotemedia.com/portal/quote/?qm_symbol=EMH%3ACC&qmodStoryID=4798595543492033 

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8020 Admin

2 months ago

8020 Admin posted a press release Emerald Health Therapeutics Maintains 50% Share Ownership in Pure Sunfarms in EMERALD HEALTH THERAPEUTICS INC.


VANCOUVER, British Columbia, Nov. 27, 2019 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF) today responded to misleading public disclosure made by Village Farms International, Inc. ("Village Farms") (TSX: VFF; Nasdaq: VFF) yesterday in connection with their joint venture, Pure Sunfarms Corp. ("PSF").


Emerald reiterates the disclosure in its November 20, 2019, news release and confirms that, factually, Emerald and Village Farms each continue to own 50% of PSF.


As set out in Village Farms’ own news release, no additional shares of PSF have been issued to Village Farms and none of Emerald’s escrowed shares in PSF have been cancelled. The outcome of both of these issues will eventually be settled through litigation, arbitration or negotiation.


Emerald confirms that it did not pay $5.94 million to PSF in connection with the Delta 2 Option Agreement as it had previously notified PSF that it was setting off its $5.94 million payment against the $13 million PSF currently owes Emerald under a demand Promissory Note. As a result of this set-off, Emerald has completed its $5.94 million payment to PSF and, in turn, Village Farms has no right to attempt to make any additional equity contributions to PSF.


Emerald confirms that Village Farms has provided Emerald with notice of arbitration with respect to Emerald’s escrowed shares in PSF. Those arbitration proceedings have yet to be initiated.


About Emerald Health Therapeutics


Emerald Health Therapeutics, Inc. (EHT) is committed to creating new consumer experiences with recreational and wellness-oriented cannabis products. With an emphasis on innovation and production excellence, Emerald has built a platform of distinct operating assets designed to uniquely serve the Canadian marketplace and international opportunities.


EHT’s 50%-owned Pure Sunfarms (PSF) in Delta, BC, focused on high quality, affordably priced products, is in full production in its first 1.1M s.f. greenhouse, with a second 1.1M s.f. greenhouse planned to be in full production by the end of 2020. Emerald’s Verdélite premium craft operation is fully licensed and expanding to full cultivation in its 88,000 s.f. indoor facility in Québec. Its Metro Vancouver health & wellness-oriented organic greenhouse and outdoor operation is expanding to full production in the first of two 78,000 s.f. buildings. Its Emerald Health Naturals joint venture is creating a completely new wellness product category with its non-cannabis endocannabinoid-supporting product line and is expanding distribution across Canada. Emerald contracted for approximately 1,000 acres of hemp annually in 2019 to 2022 with the objective of extracting low-cost CBD. The executive team is highly experienced in life sciences, product development, large-scale agri-business, and marketing.


Please visit www.emeraldhealth.ca for more information or contact:

Jenn Hepburn, Chief Financial Officer
(800) 757 3536 Ext. #5


Emerald Investor Relations
(800) 757 3536 Ext. #5
invest@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: the release from escrow of shares of PSF; the resolution of any disputes involving Emerald, Village Farms and/or PSF; payment of amounts owed to Emerald; obtaining required regulatory approvals; production and processing capacity of various facilities; expansion of facilities; receipt of hemp deliveries; and anticipated production costs.


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, changes of law and regulations; changes of government; failure to obtain regulatory approvals or permits; 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 counter-parties to perform contractual obligations; as well as the risk factors described in Emerald’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. Emerald 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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2 months ago

8020 Admin posted a press release Emerald Health Therapeutics' Pure Sunfarms Joint Venture to Supply Cannabis Products to Alberta in EMERALD HEALTH THERAPEUTICS INC.

Alberta distribution expands PSF’s market access to include top three provincial markets representing two-thirds of Canadian sales in 2019 to date


VANCOUVER, British Columbia, Nov. 27, 2019 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF) announced that its 50%-owned joint venture for large-scale, low-cost, quality cannabis production, Pure Sunfarms Corp. (“Pure Sunfarms” or “PSF”), has secured a cannabis supply agreement with Alberta Gaming, Liquor & Cannabis (AGLC), to become an official supplier of recreational adult-use cannabis products to the province’s licensed private sector retailers including Alberta’s only legal online source for recreational cannabis (AlbertaCannabis.org). The AGLC is the wholesaler to private retailers and the only authorized online retailer in Alberta. Pure Sunfarms expects to deliver its first shipment of high-quality dried flower, inclusive of pre-rolls which are anticipated to enter Pure Sunfarms’ product lineup, to consumers in Alberta in the weeks and months ahead.


Alberta has over 330 licensed stores, more than all other provinces combined. The province reported $164.6 million in legal cannabis retail trade sales between January and September 20191, placing it in the top three provinces in Canada, and sales growth of 39% from the second to third quarter. Alberta, Ontario and Quebec combined accounted for 66% of Canadian legal cannabis retail trade sales for the first nine months of 2019.


“The new supply agreement with Alberta puts branded Pure Sunfarms cannabis products in three Canadian provinces and positions PSF to increase consumer reach and sales,” said Riaz Bandali, President and CEO of Emerald. “PSF’s high-quality, affordably-priced cannabis has been in demand in B.C. and Ontario, and we look forward to seeing the results of their expansion into Alberta, which has enabled the development of a strong retail infrastructure for cannabis sales.”


Since the formal launch of its branded packaged cannabis products in Canada two months ago, Pure Sunfarms has experienced strong results in October in British Columbia and Ontario. During this time, Pure Sunfarms was the No. 1 selling brand of dried flower products to the Ontario Cannabis Store, Ontario’s only online retailer and wholesaler of legal recreational cannabis. Pure Sunfarms continues to work toward additional provincial supply agreements for its high-quality dried flower product across Canada and plans to roll out other products such as pre-rolls, oils and vapes in the coming months.


1. Statistics Canada, Retail trade sales by province and territory as of June 2019 and September 2019.


About Emerald Health Therapeutics


Emerald Health Therapeutics, Inc. (EHT) is committed to creating new consumer experiences with recreational and wellness-oriented cannabis products. With an emphasis on innovation and production excellence, Emerald has built a platform of distinct operating assets designed to uniquely serve the Canadian marketplace and international opportunities.


EHT’s 50%-owned Pure Sunfarms (PSF) in Delta, BC, focused on high quality, affordably priced products, is in full production in its first 1.1M s.f. greenhouse, with a second 1.1M s.f. greenhouse planned to be in full production by the end of 2020. Emerald’s Verdélite premium craft operation is fully licensed and expanding to full cultivation in its 88,000 s.f. indoor facility in Québec. Its Metro Vancouver health & wellness-oriented organic greenhouse and outdoor operation is expanding to full production in the first of two 78,000 s.f. buildings. Its Emerald Health Naturals joint venture is creating a completely new wellness product category with its non-cannabis endocannabinoid-supporting product line and is expanding distribution across Canada. Emerald contracted for approximately 1,000 acres of hemp annually in 2019 to 2022 with the objective of extracting low-cost CBD. The executive team is highly experienced in life sciences, product development, large-scale agri-business, and marketing.


Please visit www.emeraldhealth.ca for more information or contact:

Jenn Hepburn, Chief Financial Officer
(800) 757 3536 Ext. #5


Emerald Investor Relations
(800) 757 3536 Ext. #5
invest@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.


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, changes of law and regulations; changes of government; failure to obtain regulatory approvals or permits; 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 counter-parties to perform contractual obligations; as well as the risk factors described in Emerald’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. Emerald 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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8020 Admin

2 months ago

8020 Admin posted a press release Emerald Health Therapeutics Completing Planting in Recently Fully-Licensed, Wholly-Owned Growing Facilities in EMERALD HEALTH THERAPEUTICS INC.

Premium Québec and certified organic BC operations now readying for significant production of distinct high-quality cannabis products for Canadian and international markets


VANCOUVER, British Columbia, Nov. 26, 2019 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF) has completed planting at its indoor Québec facility, Verdélite, and expects to complete planting in the next days in the first of its two greenhouses in Metro Vancouver, allowing for transition into the commercial phase of these operations and a significant increase in quality cannabis production with approximately 7,500kg of product output targeted for these facilities in 2020.


The 88,000 square foot indoor Verdélite facility consists of 21 grow rooms with precision-controlled environments and 16 processing rooms, which became fully licensed in October. The growing area is equipped to produce 4,800 kg of high-quality craft cannabis annually, and Verdélite’s established packaging and processing lines are built to process the targeted production volume and a wide diversity of value-added products. Verdélite’s marketing strategy is focused on building differentiated brands with a unique Québec identity and targeting consumers seeking premium dried flower and other value-added cannabis products for both adult-use and health and wellness benefits.


Emerald’s Metro Vancouver operation encompasses 156,000 square feet in two greenhouses, and 12 acres of outdoor cultivation area that became licensed in the summer. The first of its two 78,000 square foot greenhouses received its full cultivation license in October and organic certification in November. This facility will organically grow multiple strains of unique high-THC and high-CBD cannabis to expand Emerald’s product line and will be particularly focused on serving medical customers and adult-use consumers seeking health and wellness benefits.  


“Our strategy to have multiple complementary operations is maturing and we are transitioning into commercial production in all our facilities,” said Riaz Bandali, President & Chief Executive Officer of Emerald. “As we move into full production, and with our nationwide distribution network in place and international market opportunities such as our recently announced Danish sales agreement, we expect sales of our differentiated Emerald cannabis products from these expanded facilities to start in the first quarter of 2020 and ramp up significantly through the year.”


About Emerald Health Therapeutics, Inc.


Emerald Health Therapeutics, Inc. (EHT) is committed to creating new consumer experiences with recreational and wellness-oriented cannabis products. With an emphasis on innovation and production excellence, Emerald has built a platform of distinct operating assets designed to uniquely serve the Canadian marketplace and international opportunities.


EHT’s 50%-owned Pure Sunfarms (PSF) in Delta, BC, focused on high quality, affordably priced products, is in full production in its first 1.1M s.f. greenhouse, with a second 1.1M s.f. greenhouse planned to be in full production by the end of 2020. Emerald’s Verdélite premium craft operation is fully licensed and in full production in its 88,000 s.f. indoor facility in Québec. Its Metro Vancouver health & wellness-oriented organic greenhouse and outdoor operation is expanding to full production in the first of two 78,000 s.f. buildings. Its Emerald Health Naturals joint venture is creating a completely new wellness product category with its non-cannabis endocannabinoid-supporting product line and is expanding distribution across Canada. The executive team is highly experienced in life sciences, product development, large-scale agri-business, and marketing.


Please visit www.emeraldhealth.ca for more information or contact:

Jenn Hepburn, Chief Financial Officer
(800) 757 3536 Ext. #5


Emerald Investor Relations
(800) 757 3536 Ext. #5
invest@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 expansion and launch of Pure Sunfarms product lines; Pure Sunfarms securing distribution in additional provinces; Pure Sunfarms production of oils; obtaining required regulatory approvals; production and processing capacity of various facilities; expansion or conversion of facilities and the timing thereof; obtaining additional cultivation licenses and other permits; receipt of hemp deliveries; payments of amounts owed to and owed by Emerald; resolution of disputes; broadening distribution of non-cannabis endocannabinoid products; and anticipated production costs.


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, results of operations; changes in business focus and strategy; agreements with third parties; changes of law and regulations; changes of government; failure to obtain regulatory approvals or permits; failure to obtain necessary financing; results of production and sale activities; changes in prices and costs of inputs; demand for labour; demand for products; failure of counter-parties 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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8020 Admin

2 months ago

8020 Admin posted a press release Emerald Health Therapeutics Responds to Inaccurate Allegations by Village Farms in EMERALD HEALTH THERAPEUTICS INC.

Emerald maintains 50% ownership of Pure Sunfarms


VANCOUVER, British Columbia, Nov. 20, 2019 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF) today responded to inaccurate allegations made by Village Farms International, Inc. ("Village Farms") (TSX: VFF; Nasdaq: VFF) in connection with their 50/50 joint venture, Pure Sunfarms Corp. ("PSF"), and updated the market on certain related matters.


Late yesterday evening Emerald received notice from Village Farms stating that Village Farms had advanced $5.94 million to PSF for additional equity. Village Farms claims that it has the right to acquire these shares under the PSF shareholders’ agreement. In fact, Village Farms has no such right.  Despite Village Farms’ claims, Emerald continues to hold a full 50% ownership interest in PSF.


“We were shocked to receive this notice,” said Riaz Bandali, President and CEO of Emerald. “We can’t speculate on Village Farms’ motivation for making this irresponsible and inaccurate claim, but we want to reassure investors that there has been no change in ownership of PSF. We are disappointed at the aggressive approach of Village Farms in this matter; however, we continue to believe that cooler heads will prevail. Until then we will assertively defend our rights on behalf of our shareholders in the face of these unwarranted actions by Village Farms.”


Under the PSF shareholders' agreement, Village Farms only has the right to make an equity contribution and increase its ownership stake if the other shareholder has defaulted under a contribution notice. A contribution notice can only be issued in certain specific circumstances and no such contribution notice was issued by PSF. The disclosure of Village Farms relating to this issue is therefore incorrect.


Emerald has acted in good faith with respect to its Pure Sunfarms joint venture, to date contributing over $37.4 million in equity investment in the D3 & D2 greenhouse operations, providing $13 million in an interest bearing loan, and purchasing over $20.5 million of cannabis as per the terms of its supply agreement with PSF.


Escrowed Shares


In connection with the exercise of PSF's option to acquire the Delta 2 facility from Village Farms, an option agreement (the "Delta 2 Option Agreement") was entered into among Emerald, Village Farms and PSF. Pursuant to the Delta 2 Option Agreement, Emerald agreed to advance an aggregate of $25 million to PSF. Additionally, certain shares of PSF issued to Emerald were placed in escrow with an escrow agent (the "Escrow Agent") and were to be released to Emerald upon payment by Emerald of amounts payable under the Delta 2 Option Agreement.


Emerald has advanced a total of $17.41 million to PSF under the Delta 2 Option Agreement. Emerald was required to advance a further $5.94 million to PSF (the "Delta 2 Payment") on November 1, 2019; however, Emerald notified PSF that Emerald has decided to set-off the $5.94 million payment owed by Emerald to PSF against a portion of PSF’s debt under Emerald’s $13.0 million principal amount shareholder loan. Emerald has also delivered written notice to the Escrow Agent disputing the release of any of Emerald’s shares of PSF remaining in escrow and has notified the Escrow Agent that it must continue to hold the shares in escrow.


In light of PSF’s actions, Emerald has formally demanded repayment from PSF of the entire amount of its $13.0 million principal amount shareholder loan, plus interest. Emerald’s demand for repayment of its shareholder loan was delivered to PSF this morning.


Supply Agreement with Pure Sunfarms


As previously announced, under its supply agreement (the "Supply Agreement") with PSF, Emerald may decline to accept deliveries of cannabis product from PSF. If product is declined, PSF may sell such product to third parties. In the event of such sale, and only in certain circumstances, Emerald may be required to pay to PSF an amount equal to the difference between the purchase price applicable to Emerald (which is subject to adjustment based on sales by PSF to third parties in accordance with the Supply Agreement) and the price actually paid by such third parties. Between June 21, 2019 and September 29, 2019, Emerald declined to accept certain deliveries of product; this product was subsequently sold by PSF to third parties.


PSF has claimed that Emerald is liable to PSF for an aggregate amount of approximately $7.2 million under the terms of the Supply Agreement. Emerald disputes this claim as it believes that the basis for calculation by PSF of the purchase price is incorrect. Emerald is reviewing information very recently provided by PSF with respect to PSF’s wholesale sales. 


About Emerald Health Therapeutics


Emerald Health Therapeutics, Inc. is a Canadian licensed producer of cannabis products focused on differentiated, value-added product development for medical and adult-use customers supported by novel intellectual property, large-scale cultivation, extraction, and softgel encapsulation, as well as unique marketing and distribution channels. Its 50%-owned PSF operation in British Columbia, with value-oriented products, is in full production at its first 1.1 million square foot greenhouse operation, Delta 3. PSF’s second 1.1 million square foot greenhouse, Delta 2, is planned to be in full production by the end of 2020. Emerald’s Verdélite 88,000 square foot indoor production facility in Québec is fully-licensed and increasing cultivation of premium, craft cannabis strains. Its Metro Vancouver high-quality organic greenhouse and outdoor operation is expanding production in the first of two 78,000 square foot buildings. Its Emerald Health Naturals joint venture is broadening distribution of its non-cannabis endocannabinoid-supporting product line across Canada. Emerald has contracted for approximately 1,000 acres of hemp annually in 2019 to 2022 with the objective of extracting low-cost CBD. The executive team is highly experienced in life sciences, product development, large-scale agri-business, and marketing.


Please visit www.emeraldhealth.ca for more information or contact:

Jenn Hepburn, Chief Financial Officer
(800) 757 3536 Ext. #5


Emerald Investor Relations
(800) 757 3536 Ext. #5
invest@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: future payments under the Delta 2 Option Agreement; the release from escrow of shares of PSF; the purchase of products by Emerald under the Supply Agreement; the resolution of any disputes involving Emerald, Village Farms and/or PSF; payment of amounts owed to Emerald; obtaining required regulatory approvals; production and processing capacity of various facilities; expansion of facilities; receipt of hemp deliveries; and anticipated production costs.


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, changes of law and regulations; changes of government; failure to obtain regulatory approvals or permits; 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 counter-parties to perform contractual obligations; as well as the risk factors described in Emerald’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. Emerald 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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8020 Admin

2 months ago

8020 Admin posted a press release Emerald Health Therapeutics' Pure Sunfarms JV Records Q3 Net Sales of $24.0 Million, 69% Gross Margin, 56% EBITDA Margin, Fourth Consecutive Quarter of Positive EBITDA, and $0.63/gram All-in Production Cost in EMERALD HEALTH THERAPEUTICS INC.


Pure Sunfarms is #1 dried flower brand with Ontario Cannabis Store in October, with 16% market share and #1 selling product

Emerald to report third quarter 2019 financial results on November 29th and hold conference call December 2nd

VANCOUVER, British Columbia, Nov. 15, 2019 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF) has provided preliminary, unaudited financial results for the third quarter of 2019 for its BC-based, 50%-owned joint venture, Pure Sunfarms (“PSF”). The Company will report complete financial results for the third quarter ended September 30, 2019, after market close on Friday, November 29, 2019, and host its third quarter 2019 financial results conference call on Monday, December 2, 2019 at 10:30 a.m. ET.


Financial Data



  • Net sales for the third quarter were $24.0M and net sales year-to-date (as of September 30th (YTD)) were $71.5M. Sales for the third quarter consisted entirely of dried flower sold primarily to other licensed producers.

  • Sales volume was almost 50% higher than the previous quarter, reaching approximately 12,000 kg of cannabis in the third quarter. YTD sales were approximately 24,600 kg.

  • Gross margin before non-cash adjustments to the fair value of inventory and biological assets was 69%. YTD gross margin before non-cash adjustments to the fair value of inventory and biological assets was 75%.

  • All-in production cost was $0.63 per gram, compared to the previous quarter’s $0.65 per gram.

  • Net loss of $2.4M reflects a ($12.6M) non-cash adjustment to the fair value of inventory and biological assets. YTD net income was $46.2M.

  • Positive EBITDA of $13.3M resulted in an EBITDA margin of 56%. YTD EBITDA was $47.1M, with an EBITDA margin of 66%.

  • Net cash and cash equivalents as of September 30 was $16.1M, up from $2.4M as of December 31, 2018.


Market Performance


After receiving its processing license amendment in early September, PSF began selling and shipping its own branded packaged products to Ontario in late September and has received multiple product reorders.


Pure Sunfarms was the #1 brand, comprising multiple products, in cannabis dried flower sales and volume with the Ontario Cannabis Store (“OCS”) in the month of October, achieving market share of 16% by volume. PSF’s market share was double that of the next largest brand.


Pure Sunfarms’ Afghan Kush was the top selling dried flower product with the OCS in October, and three of the seven top-selling dried flower products with the OCS in October were Pure Sunfarm products, by volume.


In BC, Pure Sunfarms began selling branded, packaged dried cannabis products to the BC Liquor Distribution Branch (“BCLDB”) in October. The BCLDB sold out of its first order of Pure Sunfarms product in under three weeks, and has since re-ordered, and Pure Sunfarms ranked among the top ten brands by sales for all product categories in October.


“Our joint venture, Pure Sunfarms, is once again showing its industry leadership with impressive financial results and very low-cost production,” said Riaz Bandali, President and Chief Executive Officer of Emerald. “PSF has started transitioning its business model from wholesale to direct sales of packaged cannabis products into provincial retail distribution channels. We are excited about how well this transition is being accomplished and we look forward to seeing the progress of PSF’s efforts to expand distribution and to the expansion of its product line beyond dried flower into other forms of consumption.”


Upcoming milestones


Having successfully launched packaged dried flower products in Ontario and BC, with a strong brand and value proposition that is resonating with consumers, PSF will continue to focus on securing distribution in new provinces/jurisdictions.


PSF has prioritized pre-rolls as a key new offering in its product mix, which it anticipates launching within two quarters.


PSF has completed installation of extraction equipment (with processing capacity of 35,000 kilograms of biomass annually) in its new 65,000 square foot state-of-the-art processing center within the Delta 3 greenhouse facility. The processing centre has been designed for full GMP compliance and certification to allow for future exports, and is expected to be operational very soon, subject to Health Canada licensing and in-house calibration and testing. PSF intends to produce oils and other new product forms starting in the first half of 2020.


Conversion of the interior of its second 1.1 million square foot greenhouse operation, the Delta 2 greenhouse facility, for cannabis production, is ongoing. This facility is expected to double Pure Sunfarms’ annual output at full production to more than 150,000 kilograms. Conversion of the Delta 2 greenhouse facility, which has been designed for full GMP compliance and certification to allow for future exportation, remains on schedule, with cannabis production expected to commence during the second quarter of 2020. The facility is expected to be operating at its full production run-rate by the end of 2020. Pure Sunfarms has submitted to Health Canada its application for its initial cultivation license for the Delta 2 facility.


Status of supply agreement with Pure Sunfarms


Under Emerald’s 2019 Supply Agreement with Pure Sunfarms, the Company may decline to accept deliveries of product from PSF. If product is declined, PSF may sell such product to third parties. In the event of such sale, and only in certain circumstances, the Company may be required to pay to PSF an amount equal to the difference between the purchase price applicable to the Company (which is subject to adjustment based on sales by PSF to third parties in accordance with the 2019 Supply Agreement) and the price actually paid by such third parties. Between June 21, 2019 and September 29, 2019, the Company declined to accept certain deliveries of product; this product was subsequently sold by PSF to third parties. PSF has claimed that the Company is liable to PSF for an aggregate amount of approximately $7.2 million. The Company has disputed the amount of such claim. The Company is in the course of discussions with PSF regarding these matters, and the outcome of these discussions is uncertain at this time.


Emerald’s financial results for the third quarter ended September 30, 2019, which include the financial results of Pure Sunfarms on an equity basis, will be published after the market close on Friday, November 29, 2019. The Company will host a conference call on Monday, December 2, 2019 at 10:30 a.m. ET.


To access the audio broadcast, please dial (866) 652-5200, or via the Internet at: https://services.choruscall.com/links/emhtf191202.html.


An archived version of the presentation will be available for 90 days on the "Investors" section of Emerald's website: https://ir.emeraldhealth.ca/events-and-presentations.


About Emerald Health Therapeutics, Inc.


Emerald Health Therapeutics, Inc. is a Canadian licensed producer of cannabis products focused on differentiated, value-added product development for medical and adult-use customers supported by novel intellectual property, large-scale cultivation, extraction, and softgel encapsulation, as well as unique marketing and distribution channels. Its 50%-owned Pure Sunfarms operation in British Columbia, with value-oriented products, is in full production at its first 1.1 million square foot greenhouse operation, Delta 3. Pure Sunfarms’ second 1.1 million square foot greenhouse, Delta 2, is planned to be in full production by the end of 2020. Emerald’s Verdélite 88,000 square foot indoor production facility in Québec is fully licensed and increasing cultivation of premium, craft cannabis strains. Its Metro Vancouver high-quality organic greenhouse and outdoor operation is expanding production in the first of two 78,000 square foot buildings. Its Emerald Health Naturals joint venture is broadening distribution of its non-cannabis endocannabinoid-supporting product line across Canada. Emerald has contracted for approximately 1,000 acres of hemp annually in 2019 to 2022 with the objective of extracting low-cost CBD. The executive team is highly experienced in life sciences, product development, large-scale agri-business, and marketing.


Please visit www.emeraldhealth.ca for more information or contact:

Jenn Hepburn, Chief Financial Officer
(800) 757 3536 Ext. #5


Emerald Investor Relations
(800) 757 3536 Ext. #5
invest@emeraldhealth.ca


Non-GAAP Financial Measures


This press release contains references to EBITDA which is not a measure that has any standardized meaning prescribed by IFRS and is therefore referred to as a “non-GAAP measure”. Non-GAAP measures used by the Company may not be comparable to similar measures used by other companies. EBITDA is defined as “income (loss) before interest expenses, taxes, depreciation, amortization, foreign exchange losses, and the net impact of biological asset values on income.”


The Company uses this non-GAAP measure because it provides additional information regarding performance of Pure Sunfarms’ overall business that is not otherwise reflected under IFRS.


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 expansion and launch of Pure Sunfarms product lines; Pure Sunfarms securing distribution in additional provinces; Pure Sunfarms production of oils; obtaining required regulatory approvals; production and processing capacity of various facilities; expansion or conversion of facilities and the timing thereof; obtaining additional cultivation licenses and other permits; receipt of hemp deliveries; payments of amounts owed to and owed by Emerald; resolution of disputes; broadening distribution of non-cannabis endocannabinoid products; and anticipated production costs.


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, results of operations; changes in business focus and strategy; agreements with third parties; changes of law and regulations; changes of government; failure to obtain regulatory approvals or permits; failure to obtain necessary financing; results of production and sale activities; changes in prices and costs of inputs; demand for labour; demand for products; failure of counter-parties 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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Emerald Health Therapeutics Inc.

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Emerald Health Therapeutics is a Health Canada Licensed Producer of medical cannabis. A vertically integrated, seed-to-sale enterprise, Emerald has combined core competencies from decades of experience in pharmaceutical innovation with large-scale agriculture expertise.

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Emerald Health Therapeutics Inc.

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Emerald Health Therapeutics is a Health Canada Licensed Producer of medical cannabis. A vertically integrated, seed-t......

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3 hours ago

8020 Admin posted a press release Emerald Health Therapeutics' Joint Venture Partner Withdraws Purported $5.94 Million Investment in Pure Sunfarms in EMERALD HEALTH THERAPEUTICS INC.

Emerald continues to hold 50% of Pure Sunfarms


VANCOUVER, British Columbia, Jan. 17, 2020 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF) today announced that Village Farms International, Inc. ("Village Farms") has withdrawn its attempt to make an unsupported  additional equity contribution in their joint venture, Pure Sun Farms Corp. (“PSF”). Village Farms has rescinded the attempt and has requested and received a refund of the $5.94 million it advanced to PSF in November 2019.


The previously announced arbitration proceedings between the parties remain in process with respect to Emerald’s right to set-off a $5.94 million payment owed by Emerald to PSF against a portion of the more than $13 million currently owed by PSF to Emerald under its shareholder loan. A final decision on the arbitration is expected in summer 2020. Emerald continues to own 50% of the outstanding shares of PSF.


“We are pleased that this issue has been resolved in Emerald’s favour and we will rely on the ongoing arbitration process to resolve the remaining issues,’’ said Riaz Bandali, President and CEO of Emerald.


Payments to Pure Sunfarms


On December 13, 2019, Emerald advanced $940,000 to PSF as part of its agreement to pay an aggregate of $25.0 million in connection with the exercise of the joint venture's acquisition of the Delta 2 greenhouse. It also advanced its required final payment of $710,000 on January 15, 2020. No further amounts are payable by Emerald under the D2 option agreement.


About Emerald Health Therapeutics


Emerald Health Therapeutics, Inc. is committed to creating new consumer experiences with recreational and wellness-oriented cannabis products. With an emphasis on innovation and production excellence, Emerald has built a platform of distinct operating assets designed to uniquely serve the Canadian marketplace and international opportunities. Its 50%-owned PSF operation in British Columbia, with high quality, affordably priced products, is in full production at its first 1.1 million square foot greenhouse operation, Delta 3. PSF’s second 1.1 million square foot greenhouse, Delta 2, is currently being retrofitted for the cultivation of cannabis. Emerald’s Verdélite premium craft operation is fully licensed and in full production in its 88,000 square foot indoor facility in Québec. Its Metro Vancouver health and wellness-oriented organic greenhouse and outdoor operation has completed planting in the first of two 78,000 square foot buildings. Its Emerald Naturals joint venture is creating a completely new wellness product category with its non-cannabis endocannabinoid-supporting product line and is expanding distribution across Canada.


Please visit www.emeraldhealth.ca for more information or contact:

Jenn Hepburn, Chief Financial Officer
(800) 757 3536 Ext. #5


Emerald Investor Relations
(800) 757 3536 Ext. #5
invest@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: the resolution of any disputes involving Emerald, Village Farms and/or PSF; payment of amounts owed to Emerald; growth and performance of PSF; obtaining required regulatory approvals; expansion of distribution of endocannabinoid-supporting products; production and processing capacity of various facilities; expansion of facilities; and anticipated production costs.


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, changes of law and regulations; changes of government; failure to obtain regulatory approvals or permits; 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 counter-parties to perform contractual obligations; as well as the risk factors described in Emerald’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. Emerald 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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8020 Admin

11 days ago

8020 Admin posted a press release Emerald Health Therapeutics Announces Second Tranche of $4.5 Million Financing in EMERALD HEALTH THERAPEUTICS INC.

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES


VANCOUVER, British Columbia, Jan. 06, 2020 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF), has entered into a binding term sheet with certain institutional accredited investors (the “Investors”) under which the Investors have agreed, subject to certain customary conditions, to purchase 10,344,827 units of Emerald (each, a "Unit") at a price of $0.29 per Unit for total gross proceeds of $3,000,000 (the "Offering"). These Units will represent the remainder of the financing previously announced on December 16, 2019, however the securities to be issued under the Offering will be offered by way of a shelf prospectus supplement (the “Prospectus Supplement”) to be filed in all of the provinces of Canada pursuant to National Instrument 44-102 – Shelf Distributions and will not be subject to a hold period.


Each Unit will consist of one common share of Emerald (each, a "Common Share") and one common share purchase warrant (each, a "Warrant"). Each Warrant will entitle the Investor to acquire one common share of Emerald (each, a "Warrant Share") at a price of $0.385 per Warrant Share for a period of five years following the closing of the Offering.


The Company intends to use the net proceeds of the Offering for general working capital purposes.


The closing date of the Offering is scheduled to be on or about January 13, 2020 and is subject to certain customary conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and applicable securities regulatory authorities.


Emerald has also reached an agreement with the holder of the Convertible Debentures issued on September 10, 2019 to settle accrued interest on the Convertible Debentures to December 31, 2019 in the amount of $383,562 by issuing an additional 1,322,627 Common Shares (the “Debt Shares”) at a deemed value of $0.29 per share. The Debt Shares will also be qualified under the Prospectus Supplement. Issuance of the Debt Shares is subject to approval of the TSX Venture Exchange.


This press 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 state in which such offer, solicitation, or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws.


About Emerald Health Therapeutics


Emerald Health Therapeutics, Inc. is committed to creating new consumer experiences with recreational and wellness-oriented cannabis products. With an emphasis on innovation and production excellence, Emerald has built a platform of distinct operating assets designed to uniquely serve the Canadian marketplace and international opportunities. Its 50%-owned Pure Sunfarms (PSF) operation in British Columbia, with high quality, affordably priced products, is in full production at its first 1.1 million square foot greenhouse operation, Delta 3. PSF’s second 1.1 million square foot greenhouse, Delta 2, is planned to be in full production by the end of 2020. Emerald’s Verdélite premium craft operation is fully licensed and in full production in its 88,000 square foot indoor facility in Québec. Its Metro Vancouver health and wellness-oriented organic greenhouse and outdoor operation has completed planting in the first of two 78,000 square foot buildings. Its Emerald Naturals joint venture is creating a completely new wellness product category with its non-cannabis endocannabinoid-supporting product line and is expanding distribution across Canada.


Please visit www.emeraldhealth.ca for more information or contact:

Jenn Hepburn, Chief Financial Officer
(800) 757 3536 Ext. #5


Emerald Investor Relations
(800) 757 3536 Ext. #5
invest@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: closing of the Offering and issuance of the Debt Shares; the use of proceeds raised from the Offering; obtaining required regulatory approvals; production and processing capacity of various facilities; expansion of facilities; anticipated production costs; and creation of a new product line.


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, changes of law and regulations; changes of government; failure to obtain regulatory approvals or permits; 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 counter-parties to perform contractual obligations; as well as the risk factors described in Emerald’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. Emerald 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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8020 Admin

25 days ago

8020 Admin posted a press release Emerald Health Therapeutics Enters into Multi-Year Extraction and White Label Service Agreement with Valens in EMERALD HEALTH THERAPEUTICS INC.

Emerald also completes payments under its joint venture agreement with Pure Sunfarms


VANCOUVER, British Columbia, Dec. 23, 2019 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF) has entered into a multi-year agreement (the "Agreement") with Valens GroWorks Corp. (“Valens” or “The Valens Company”) (TSXV: VLNS; OTCQX: VLNCF) to contract cannabis extraction and white-label product development services.


Under the Agreement, which has a 4-year term, Emerald will supply Valens with a minimum of 10,000 kg of cannabis and hemp biomass annually for processing on a fee for service basis into premium quality resins and distillates using Valens’ leading proprietary extraction and processing methods. Valens will also provide white label services including formulation, mixing and filling for product formats such as vaporizers, softgels and tinctures. Emerald expects to make its first shipment to Valens in Q1 of 2020. Valens currently holds all required licensing from Health Canada to carry out its obligations under the Agreement.


“We are excited to partner with Emerald to provide our extraction and white label expertise to bolster their supply chain,” said Tyler Robson, CEO of Valens GroWorks. “Emerald is focused on an incredibly important medical cannabis patient program for individuals in need across Canada. We look forward to working closely with the team at Emerald as they scale their operations and expand their product portfolio for years to come.”


“We are pleased to have Valens as one of our strategic manufacturing partners, and look forward to bringing the variety of products we will generate with them to market,” said Riaz Bandali, CEO of Emerald. “Beyond being an industry leader in extraction, formulation, and other services, Valens’ cost-effective end-to-end fulfillment solution can help transition our novel product ideas into tangible products in a faster and more cost-effective manner.”


Other developments


On December 13, 2019, Emerald advanced $940,000 to its Pure Sunfarms joint venture as part of its agreement to pay an aggregate of $25.0 million in connection with the exercise of the Joint Venture's acquisition of the Delta 2 greenhouse. The Company also intends to advance the final payment of $710,000 due in January 2020.


About Valens GroWorks


Valens GroWorks Corp. is a multi-licensed, vertically-integrated cannabis company focused on being the partner of choice for leading Canadian and international cannabis brands by providing best-in-class, proprietary services including CO2, ethanol, hydrocarbon, solvent-less and terpene extraction, analytical testing, formulation and white label product development. Valens is the largest third-party extraction Company in Canada with an annual capacity of 425,000 kg of dried cannabis and hemp biomass at our purpose-built facility in Kelowna, British Columbia, which is in the process of becoming European Union (EU) Good Manufacturing Practices (GMP) compliant.  Additionally, our subsidiary Valens Labs is a Health Canada licensed ISO 17025 accredited cannabis testing lab providing sector-leading analytical services and has partnered with Thermo Fisher Scientific to develop a Centre of Excellence in Plant-Based Science.  For more information, please visit http://valensgroworks.com. 


About Emerald Health Therapeutics, Inc.

Emerald Health Therapeutics, Inc. is committed to creating new consumer experiences with recreational and wellness-oriented cannabis products. With an emphasis on innovation and production excellence, Emerald has built a platform of distinct operating assets designed to uniquely serve the Canadian marketplace and international opportunities.


Emerald’s 50%-owned Pure Sunfarms (PSF) in Delta, BC, focused on high quality, affordably priced products, is in full production in its first 1.1M s.f. greenhouse, with a second 1.1M s.f. greenhouse planned to be in full production by the end of 2020. Emerald’s Verdélite premium craft operation is fully licensed and in full production in its 88,000 s.f. indoor facility in Québec. Its Metro Vancouver health & wellness-oriented organic greenhouse and outdoor operation has completed planting in the first of two 78,000 s.f. buildings. Its Emerald Naturals joint venture is creating a completely new wellness product category with its non-cannabis endocannabinoid-supporting product line and is expanding distribution across Canada.


Please visit www.emeraldhealth.ca for more information or contact:

Jenn Hepburn, Chief Financial Officer
1(800) 757 3536 Ext. #5


Emerald Investor Relations
(800) 757 3536 Ext. #5
invest@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.


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, changes of law and regulations; changes of government; 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 counter-parties 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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8020 Admin

1 month ago

8020 Admin posted a press release Emerald Health Therapeutics Announces Financing Transactions in EMERALD HEALTH THERAPEUTICS INC.


NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, British Columbia, Dec. 16, 2019 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF) announced today that it is carrying out a financing and entering into a shares for debt transaction.


Private Placement


Emerald intends to complete a non-brokered private placement (the "Private Placement"), in one or more tranches, of a minimum of 5,172,414 units of Emerald (each, a "Unit") and a maximum of 15,517,241 Units at a price of $0.29 per Unit, for gross proceeds of a minimum of $1,500,000 and a maximum of $4,500,000. Each Unit will consist of one common share of Emerald (each, a "Unit Share") and one common share purchase warrant (each, a "Warrant").


Each Warrant will entitle the holder thereof to acquire one common share of Emerald (each, a "Warrant Share") at a price of $0.385 per Warrant Share for a period of five years following the closing of the Private Placement. In the event that the closing sale price of Emerald’s common shares (“Shares”) on the TSX Venture Exchange, or such other principal exchange on which the Shares are then trading, is greater than $0.75 per Share for a period of ten consecutive trading days at any time after the closing of the Private Placement, Emerald may accelerate the expiry date of the Warrants by giving written notice to the holder thereof and in such case the Warrants will expire on the 15th day after the date on which such notice is given by Emerald.


Emerald Health Sciences Inc. ("Sciences"), a control person of Emerald, and certain directors and officers of Emerald have agreed, subject to certain customary conditions, to purchase an aggregate of 5,172,414 Units of the Private Placement for $1,500,000. It is anticipated that Sciences will purchase 4,687,941 Units, while directors and officers of Emerald will purchase an aggregate of 484,473 Units.


Emerald intends to use the net proceeds of the Private Placement for general working capital purposes. The Private Placement has been approved by the independent members of the board of directors of Emerald.


Shares for Debt


Emerald has also reached an agreement with Sciences (the "Debt Settlement”) to settle $3,000,000 (the "Debt") of the aggregate debt owed by Emerald to Sciences pursuant to a previously disclosed loan agreement between the parties as well as other related party transactions. Pursuant to the Debt Settlement, Emerald will satisfy the Debt by issuing 10,389,611 common shares of Emerald (each, a "Debt Share") at a deemed value of $0.29 per Debt Share. The Debt Settlement has been approved by the independent members of the board of directors of Emerald, who have determined that the fair market value of the securities being issued under the Debt Settlement and the consideration therefor are reasonable.


Secondary Offering


Sciences has advised the Company that Sciences has entered into a binding term sheet (the "Term Sheet") with a single Canadian institutional investor (the “Investor”) in connection with a secondary offering (the “Secondary Offering”) of Shares. Pursuant to the Term Sheet, the Investor will purchase 5,785,119 Shares (the “Secondary Shares”) from Sciences at a price of $0.235 per Secondary Share. Sciences will receive all of the net proceeds from the Secondary Offering.


In connection with the Secondary Offering, Emerald has agreed to file a shelf prospectus supplement qualifying the Secondary Shares for distribution in each of the provinces of Canada, in accordance with National Instrument 44-101 Short Form Prospectus Distributions and National Instrument 44-102 Shelf Distributions.


The closing date of the Debt Settlement, the initial tranche of the Private Placement and the Secondary Offering is scheduled to be on or about December 23, 2019, and is subject to certain customary conditions including, but not limited to, the receipt of all necessary approvals.


Sciences currently holds approximately 30,785,119 of the issued shares of Emerald and, upon completion of the initial tranche of the Private Placement, the Debt Settlement and the Secondary Offering, Sciences will hold approximately 23.4% of the issued and outstanding shares of Emerald, on an undiluted basis.


As Sciences is a control person of Emerald, the Debt Settlement and Sciences' participation in the Private Placement is considered to be a “related party transaction,” as defined under Multilateral Instrument 61-101 (“MI 61-101”). Emerald intends to rely on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(a) thereof.


This press 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 state in which such offer, solicitation, or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws.


About Emerald Health Therapeutics


Emerald Health Therapeutics, Inc. is committed to creating new consumer experiences with recreational and wellness-oriented cannabis products. With an emphasis on innovation and production excellence, Emerald has built a platform of distinct operating assets designed to uniquely serve the Canadian marketplace and international opportunities. Its 50%-owned Pure Sunfarms (PSF) operation in British Columbia, with high quality, affordably priced products, is in full production at its first 1.1 million square foot greenhouse operation, Delta 3. PSF’s second 1.1 million square foot greenhouse, Delta 2, is planned to be in full production by the end of 2020. Emerald’s Verdélite premium craft operation is fully licensed and in full production in its 88,000 square foot indoor facility in Québec. Its Metro Vancouver health and wellness-oriented organic greenhouse and outdoor operation has completed planting in the first of two 78,000 square foot buildings. Its Emerald Naturals joint venture is creating a completely new wellness product category with its non-cannabis endocannabinoid-supporting product line and is expanding distribution across Canada.


Please visit www.emeraldhealth.ca for more information or contact:

Jenn Hepburn, Chief Financial Officer
(800) 757 3536 Ext. #5


Emerald Investor Relations
(800) 757 3536 Ext. #5
invest@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: closing of the Debt Settlement, the Private Placement and the Secondary Offering; the use of proceeds raised from the Private Placement; obtaining required regulatory approvals; production and processing capacity of various facilities; expansion of facilities; receipt of hemp deliveries; and anticipated production costs.


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, changes of law and regulations; changes of government; failure to obtain regulatory approvals or permits; 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 counter-parties to perform contractual obligations; as well as the risk factors described in Emerald’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. Emerald 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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8020 Admin

2 months ago

8020 Admin posted a press release Emerald Health Therapeutics Reports Third Quarter 2019 Financial Results; Sales Double Third Quarter in a Row in EMERALD HEALTH THERAPEUTICS INC.

50% owned JV, Pure Sunfarms, achieves fourth consecutive quarter of positive EBITDA, all-in cost of production of C$0.63 per gram, gross margin of 69% and EBITDA margin of 73%


VANCOUVER, British Columbia, Dec. 02, 2019 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF) reported financial results for the quarter and nine-month period ended September 30, 2019. Full versions of the Company’s unaudited condensed, interim consolidated financial statements and MD&A can be found on SEDAR at www.sedar.com.


Highlights


Emerald



  • Net sales doubled to $9.3M from the prior quarter.

  • Net loss of $17.5M impacted by $2.8M inventory write down and decrease of $9.1M in fair value adjustments of biological assets.

  • Total SG&A expenses of $10.1M lower than Q2 expenses of $12.4M.

  • Second consecutive quarter of positive adjusted EBITDA at $2.4M in Q3 2019.

  • $5.5M positive working capital shows improvement from ($4.2M) working capital in the previous quarter.


Pure Sunfarms (50%-owned JV financials are not consolidated into Emerald financials)



  • Net sales were $24.0M in Q3 and were $71.5M year-to-date (Sept. 30). Sales volume was almost 50% higher than the previous quarter, reaching approximately 12,000 kg. YTD volume was approximately 24,600 kg. Sales for Q3 consisted primarily of dried flower sold to other licensed producers. Late in Q3, Pure Sunfarms began shipping branded packaged product to the Ontario Cannabis Store.

  • Gross margin before non-cash adjustments to the fair value of inventory and biological assets was 69%.

  • EBITDA was $18.2M, an EBITDA margin of 73%. YTD EBITDA was $44.3M, or 62%.

  • Net cash and cash equivalents as of September 30 was $16.1M, up from $2.4M as of December 31, 2018.

  • Net loss of $2.4M reflects a ($12.6M) non-cash adjustment to the fair value of inventory and biological assets. YTD net income was $46.2M.

  • All-in production cost of $0.63 per gram, compared to $0.65 per gram in Q2.

  • Emerald recognized ($1.2M) as its 50% share of the joint venture compared to $14.5M in Q2. The loss in Q3 reflected a ($8.7M) non-cash adjustment to the fair value of inventory and biological assets.


Key Initiatives and Accomplishments



  • Expanding shipments in ten provinces and territories, facilitating revenue growth from $2.1M in all of 2018 to $17.4M in the first nine months of 2019.

  • Pure Sunfarms (PSF) has become one of the most competitive producers of high-quality, affordably priced cannabis in Canada, and is shipping into Ontario and BC, with Alberta starting in early 2020. PSF is now expanding its production footprint with the conversion of its second 1.1M s.f. greenhouse, which is expected to harvest its first crop in Q2 2020.

  • With licensing and planting recently completed at its wholly-owned indoor premium Québec facility, Verdélite, and in the first of its two organic greenhouses in Metro Vancouver, Emerald anticipates an increase in cannabis production with approximately 7,500kg of production targeted for these facilities in 2020.

  • Emerald has seen success with oil and pre-roll products, along with the introduction of its non-cannabis Endo product line through Emerald Health Naturals, and continues to advance product development toward the commercialization of new brands and products in 2020.

  • The Company completed a restructuring during Q3 and into Q4, with a reduction to its workforce and an internal reorganization for streamlined operations and decreased expenditures going into fiscal 2020.


“Emerald continues to refine its focus and drive to commercialize its key operational assets in 2020,” said Riaz Bandali, President and Chief Executive Officer of Emerald. “Our primary asset, our 50%-owned Pure Sunfarms joint venture, has rapidly distinguished itself as a high-performing asset. We are putting our energy into building out complementary business opportunities with distinct positioning to meet the needs of adult-use and wellness-oriented consumers, and taking the steps to realize positive cash flow and achieve profitability in 2020.”


Financials Results & Capital Resources


Selected quarterly financial information


The following table summarizes selected quarterly financial information for the Company, which was derived from annual financial statements prepared in accordance with IFRS or interim financial statements prepared in accordance with IFRS applicable to the preparation of interim financial statements, IAS 34, Interim Financial Reporting:



Read more here:  https://quotemedia.com/portal/quote/?qm_symbol=EMH%3ACC&qmodStoryID=4798595543492033 

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8020 Admin

2 months ago

8020 Admin posted a press release Emerald Health Therapeutics Maintains 50% Share Ownership in Pure Sunfarms in EMERALD HEALTH THERAPEUTICS INC.


VANCOUVER, British Columbia, Nov. 27, 2019 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF) today responded to misleading public disclosure made by Village Farms International, Inc. ("Village Farms") (TSX: VFF; Nasdaq: VFF) yesterday in connection with their joint venture, Pure Sunfarms Corp. ("PSF").


Emerald reiterates the disclosure in its November 20, 2019, news release and confirms that, factually, Emerald and Village Farms each continue to own 50% of PSF.


As set out in Village Farms’ own news release, no additional shares of PSF have been issued to Village Farms and none of Emerald’s escrowed shares in PSF have been cancelled. The outcome of both of these issues will eventually be settled through litigation, arbitration or negotiation.


Emerald confirms that it did not pay $5.94 million to PSF in connection with the Delta 2 Option Agreement as it had previously notified PSF that it was setting off its $5.94 million payment against the $13 million PSF currently owes Emerald under a demand Promissory Note. As a result of this set-off, Emerald has completed its $5.94 million payment to PSF and, in turn, Village Farms has no right to attempt to make any additional equity contributions to PSF.


Emerald confirms that Village Farms has provided Emerald with notice of arbitration with respect to Emerald’s escrowed shares in PSF. Those arbitration proceedings have yet to be initiated.


About Emerald Health Therapeutics


Emerald Health Therapeutics, Inc. (EHT) is committed to creating new consumer experiences with recreational and wellness-oriented cannabis products. With an emphasis on innovation and production excellence, Emerald has built a platform of distinct operating assets designed to uniquely serve the Canadian marketplace and international opportunities.


EHT’s 50%-owned Pure Sunfarms (PSF) in Delta, BC, focused on high quality, affordably priced products, is in full production in its first 1.1M s.f. greenhouse, with a second 1.1M s.f. greenhouse planned to be in full production by the end of 2020. Emerald’s Verdélite premium craft operation is fully licensed and expanding to full cultivation in its 88,000 s.f. indoor facility in Québec. Its Metro Vancouver health & wellness-oriented organic greenhouse and outdoor operation is expanding to full production in the first of two 78,000 s.f. buildings. Its Emerald Health Naturals joint venture is creating a completely new wellness product category with its non-cannabis endocannabinoid-supporting product line and is expanding distribution across Canada. Emerald contracted for approximately 1,000 acres of hemp annually in 2019 to 2022 with the objective of extracting low-cost CBD. The executive team is highly experienced in life sciences, product development, large-scale agri-business, and marketing.


Please visit www.emeraldhealth.ca for more information or contact:

Jenn Hepburn, Chief Financial Officer
(800) 757 3536 Ext. #5


Emerald Investor Relations
(800) 757 3536 Ext. #5
invest@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: the release from escrow of shares of PSF; the resolution of any disputes involving Emerald, Village Farms and/or PSF; payment of amounts owed to Emerald; obtaining required regulatory approvals; production and processing capacity of various facilities; expansion of facilities; receipt of hemp deliveries; and anticipated production costs.


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, changes of law and regulations; changes of government; failure to obtain regulatory approvals or permits; 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 counter-parties to perform contractual obligations; as well as the risk factors described in Emerald’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. Emerald 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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8020 Admin

2 months ago

8020 Admin posted a press release Emerald Health Therapeutics' Pure Sunfarms Joint Venture to Supply Cannabis Products to Alberta in EMERALD HEALTH THERAPEUTICS INC.

Alberta distribution expands PSF’s market access to include top three provincial markets representing two-thirds of Canadian sales in 2019 to date


VANCOUVER, British Columbia, Nov. 27, 2019 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF) announced that its 50%-owned joint venture for large-scale, low-cost, quality cannabis production, Pure Sunfarms Corp. (“Pure Sunfarms” or “PSF”), has secured a cannabis supply agreement with Alberta Gaming, Liquor & Cannabis (AGLC), to become an official supplier of recreational adult-use cannabis products to the province’s licensed private sector retailers including Alberta’s only legal online source for recreational cannabis (AlbertaCannabis.org). The AGLC is the wholesaler to private retailers and the only authorized online retailer in Alberta. Pure Sunfarms expects to deliver its first shipment of high-quality dried flower, inclusive of pre-rolls which are anticipated to enter Pure Sunfarms’ product lineup, to consumers in Alberta in the weeks and months ahead.


Alberta has over 330 licensed stores, more than all other provinces combined. The province reported $164.6 million in legal cannabis retail trade sales between January and September 20191, placing it in the top three provinces in Canada, and sales growth of 39% from the second to third quarter. Alberta, Ontario and Quebec combined accounted for 66% of Canadian legal cannabis retail trade sales for the first nine months of 2019.


“The new supply agreement with Alberta puts branded Pure Sunfarms cannabis products in three Canadian provinces and positions PSF to increase consumer reach and sales,” said Riaz Bandali, President and CEO of Emerald. “PSF’s high-quality, affordably-priced cannabis has been in demand in B.C. and Ontario, and we look forward to seeing the results of their expansion into Alberta, which has enabled the development of a strong retail infrastructure for cannabis sales.”


Since the formal launch of its branded packaged cannabis products in Canada two months ago, Pure Sunfarms has experienced strong results in October in British Columbia and Ontario. During this time, Pure Sunfarms was the No. 1 selling brand of dried flower products to the Ontario Cannabis Store, Ontario’s only online retailer and wholesaler of legal recreational cannabis. Pure Sunfarms continues to work toward additional provincial supply agreements for its high-quality dried flower product across Canada and plans to roll out other products such as pre-rolls, oils and vapes in the coming months.


1. Statistics Canada, Retail trade sales by province and territory as of June 2019 and September 2019.


About Emerald Health Therapeutics


Emerald Health Therapeutics, Inc. (EHT) is committed to creating new consumer experiences with recreational and wellness-oriented cannabis products. With an emphasis on innovation and production excellence, Emerald has built a platform of distinct operating assets designed to uniquely serve the Canadian marketplace and international opportunities.


EHT’s 50%-owned Pure Sunfarms (PSF) in Delta, BC, focused on high quality, affordably priced products, is in full production in its first 1.1M s.f. greenhouse, with a second 1.1M s.f. greenhouse planned to be in full production by the end of 2020. Emerald’s Verdélite premium craft operation is fully licensed and expanding to full cultivation in its 88,000 s.f. indoor facility in Québec. Its Metro Vancouver health & wellness-oriented organic greenhouse and outdoor operation is expanding to full production in the first of two 78,000 s.f. buildings. Its Emerald Health Naturals joint venture is creating a completely new wellness product category with its non-cannabis endocannabinoid-supporting product line and is expanding distribution across Canada. Emerald contracted for approximately 1,000 acres of hemp annually in 2019 to 2022 with the objective of extracting low-cost CBD. The executive team is highly experienced in life sciences, product development, large-scale agri-business, and marketing.


Please visit www.emeraldhealth.ca for more information or contact:

Jenn Hepburn, Chief Financial Officer
(800) 757 3536 Ext. #5


Emerald Investor Relations
(800) 757 3536 Ext. #5
invest@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.


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, changes of law and regulations; changes of government; failure to obtain regulatory approvals or permits; 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 counter-parties to perform contractual obligations; as well as the risk factors described in Emerald’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. Emerald 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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8020 Admin

2 months ago

8020 Admin posted a press release Emerald Health Therapeutics Completing Planting in Recently Fully-Licensed, Wholly-Owned Growing Facilities in EMERALD HEALTH THERAPEUTICS INC.

Premium Québec and certified organic BC operations now readying for significant production of distinct high-quality cannabis products for Canadian and international markets


VANCOUVER, British Columbia, Nov. 26, 2019 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF) has completed planting at its indoor Québec facility, Verdélite, and expects to complete planting in the next days in the first of its two greenhouses in Metro Vancouver, allowing for transition into the commercial phase of these operations and a significant increase in quality cannabis production with approximately 7,500kg of product output targeted for these facilities in 2020.


The 88,000 square foot indoor Verdélite facility consists of 21 grow rooms with precision-controlled environments and 16 processing rooms, which became fully licensed in October. The growing area is equipped to produce 4,800 kg of high-quality craft cannabis annually, and Verdélite’s established packaging and processing lines are built to process the targeted production volume and a wide diversity of value-added products. Verdélite’s marketing strategy is focused on building differentiated brands with a unique Québec identity and targeting consumers seeking premium dried flower and other value-added cannabis products for both adult-use and health and wellness benefits.


Emerald’s Metro Vancouver operation encompasses 156,000 square feet in two greenhouses, and 12 acres of outdoor cultivation area that became licensed in the summer. The first of its two 78,000 square foot greenhouses received its full cultivation license in October and organic certification in November. This facility will organically grow multiple strains of unique high-THC and high-CBD cannabis to expand Emerald’s product line and will be particularly focused on serving medical customers and adult-use consumers seeking health and wellness benefits.  


“Our strategy to have multiple complementary operations is maturing and we are transitioning into commercial production in all our facilities,” said Riaz Bandali, President & Chief Executive Officer of Emerald. “As we move into full production, and with our nationwide distribution network in place and international market opportunities such as our recently announced Danish sales agreement, we expect sales of our differentiated Emerald cannabis products from these expanded facilities to start in the first quarter of 2020 and ramp up significantly through the year.”


About Emerald Health Therapeutics, Inc.


Emerald Health Therapeutics, Inc. (EHT) is committed to creating new consumer experiences with recreational and wellness-oriented cannabis products. With an emphasis on innovation and production excellence, Emerald has built a platform of distinct operating assets designed to uniquely serve the Canadian marketplace and international opportunities.


EHT’s 50%-owned Pure Sunfarms (PSF) in Delta, BC, focused on high quality, affordably priced products, is in full production in its first 1.1M s.f. greenhouse, with a second 1.1M s.f. greenhouse planned to be in full production by the end of 2020. Emerald’s Verdélite premium craft operation is fully licensed and in full production in its 88,000 s.f. indoor facility in Québec. Its Metro Vancouver health & wellness-oriented organic greenhouse and outdoor operation is expanding to full production in the first of two 78,000 s.f. buildings. Its Emerald Health Naturals joint venture is creating a completely new wellness product category with its non-cannabis endocannabinoid-supporting product line and is expanding distribution across Canada. The executive team is highly experienced in life sciences, product development, large-scale agri-business, and marketing.


Please visit www.emeraldhealth.ca for more information or contact:

Jenn Hepburn, Chief Financial Officer
(800) 757 3536 Ext. #5


Emerald Investor Relations
(800) 757 3536 Ext. #5
invest@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 expansion and launch of Pure Sunfarms product lines; Pure Sunfarms securing distribution in additional provinces; Pure Sunfarms production of oils; obtaining required regulatory approvals; production and processing capacity of various facilities; expansion or conversion of facilities and the timing thereof; obtaining additional cultivation licenses and other permits; receipt of hemp deliveries; payments of amounts owed to and owed by Emerald; resolution of disputes; broadening distribution of non-cannabis endocannabinoid products; and anticipated production costs.


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, results of operations; changes in business focus and strategy; agreements with third parties; changes of law and regulations; changes of government; failure to obtain regulatory approvals or permits; failure to obtain necessary financing; results of production and sale activities; changes in prices and costs of inputs; demand for labour; demand for products; failure of counter-parties 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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8020 Admin

2 months ago

8020 Admin posted a press release Emerald Health Therapeutics Responds to Inaccurate Allegations by Village Farms in EMERALD HEALTH THERAPEUTICS INC.

Emerald maintains 50% ownership of Pure Sunfarms


VANCOUVER, British Columbia, Nov. 20, 2019 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF) today responded to inaccurate allegations made by Village Farms International, Inc. ("Village Farms") (TSX: VFF; Nasdaq: VFF) in connection with their 50/50 joint venture, Pure Sunfarms Corp. ("PSF"), and updated the market on certain related matters.


Late yesterday evening Emerald received notice from Village Farms stating that Village Farms had advanced $5.94 million to PSF for additional equity. Village Farms claims that it has the right to acquire these shares under the PSF shareholders’ agreement. In fact, Village Farms has no such right.  Despite Village Farms’ claims, Emerald continues to hold a full 50% ownership interest in PSF.


“We were shocked to receive this notice,” said Riaz Bandali, President and CEO of Emerald. “We can’t speculate on Village Farms’ motivation for making this irresponsible and inaccurate claim, but we want to reassure investors that there has been no change in ownership of PSF. We are disappointed at the aggressive approach of Village Farms in this matter; however, we continue to believe that cooler heads will prevail. Until then we will assertively defend our rights on behalf of our shareholders in the face of these unwarranted actions by Village Farms.”


Under the PSF shareholders' agreement, Village Farms only has the right to make an equity contribution and increase its ownership stake if the other shareholder has defaulted under a contribution notice. A contribution notice can only be issued in certain specific circumstances and no such contribution notice was issued by PSF. The disclosure of Village Farms relating to this issue is therefore incorrect.


Emerald has acted in good faith with respect to its Pure Sunfarms joint venture, to date contributing over $37.4 million in equity investment in the D3 & D2 greenhouse operations, providing $13 million in an interest bearing loan, and purchasing over $20.5 million of cannabis as per the terms of its supply agreement with PSF.


Escrowed Shares


In connection with the exercise of PSF's option to acquire the Delta 2 facility from Village Farms, an option agreement (the "Delta 2 Option Agreement") was entered into among Emerald, Village Farms and PSF. Pursuant to the Delta 2 Option Agreement, Emerald agreed to advance an aggregate of $25 million to PSF. Additionally, certain shares of PSF issued to Emerald were placed in escrow with an escrow agent (the "Escrow Agent") and were to be released to Emerald upon payment by Emerald of amounts payable under the Delta 2 Option Agreement.


Emerald has advanced a total of $17.41 million to PSF under the Delta 2 Option Agreement. Emerald was required to advance a further $5.94 million to PSF (the "Delta 2 Payment") on November 1, 2019; however, Emerald notified PSF that Emerald has decided to set-off the $5.94 million payment owed by Emerald to PSF against a portion of PSF’s debt under Emerald’s $13.0 million principal amount shareholder loan. Emerald has also delivered written notice to the Escrow Agent disputing the release of any of Emerald’s shares of PSF remaining in escrow and has notified the Escrow Agent that it must continue to hold the shares in escrow.


In light of PSF’s actions, Emerald has formally demanded repayment from PSF of the entire amount of its $13.0 million principal amount shareholder loan, plus interest. Emerald’s demand for repayment of its shareholder loan was delivered to PSF this morning.


Supply Agreement with Pure Sunfarms


As previously announced, under its supply agreement (the "Supply Agreement") with PSF, Emerald may decline to accept deliveries of cannabis product from PSF. If product is declined, PSF may sell such product to third parties. In the event of such sale, and only in certain circumstances, Emerald may be required to pay to PSF an amount equal to the difference between the purchase price applicable to Emerald (which is subject to adjustment based on sales by PSF to third parties in accordance with the Supply Agreement) and the price actually paid by such third parties. Between June 21, 2019 and September 29, 2019, Emerald declined to accept certain deliveries of product; this product was subsequently sold by PSF to third parties.


PSF has claimed that Emerald is liable to PSF for an aggregate amount of approximately $7.2 million under the terms of the Supply Agreement. Emerald disputes this claim as it believes that the basis for calculation by PSF of the purchase price is incorrect. Emerald is reviewing information very recently provided by PSF with respect to PSF’s wholesale sales. 


About Emerald Health Therapeutics


Emerald Health Therapeutics, Inc. is a Canadian licensed producer of cannabis products focused on differentiated, value-added product development for medical and adult-use customers supported by novel intellectual property, large-scale cultivation, extraction, and softgel encapsulation, as well as unique marketing and distribution channels. Its 50%-owned PSF operation in British Columbia, with value-oriented products, is in full production at its first 1.1 million square foot greenhouse operation, Delta 3. PSF’s second 1.1 million square foot greenhouse, Delta 2, is planned to be in full production by the end of 2020. Emerald’s Verdélite 88,000 square foot indoor production facility in Québec is fully-licensed and increasing cultivation of premium, craft cannabis strains. Its Metro Vancouver high-quality organic greenhouse and outdoor operation is expanding production in the first of two 78,000 square foot buildings. Its Emerald Health Naturals joint venture is broadening distribution of its non-cannabis endocannabinoid-supporting product line across Canada. Emerald has contracted for approximately 1,000 acres of hemp annually in 2019 to 2022 with the objective of extracting low-cost CBD. The executive team is highly experienced in life sciences, product development, large-scale agri-business, and marketing.


Please visit www.emeraldhealth.ca for more information or contact:

Jenn Hepburn, Chief Financial Officer
(800) 757 3536 Ext. #5


Emerald Investor Relations
(800) 757 3536 Ext. #5
invest@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: future payments under the Delta 2 Option Agreement; the release from escrow of shares of PSF; the purchase of products by Emerald under the Supply Agreement; the resolution of any disputes involving Emerald, Village Farms and/or PSF; payment of amounts owed to Emerald; obtaining required regulatory approvals; production and processing capacity of various facilities; expansion of facilities; receipt of hemp deliveries; and anticipated production costs.


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, changes of law and regulations; changes of government; failure to obtain regulatory approvals or permits; 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 counter-parties to perform contractual obligations; as well as the risk factors described in Emerald’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. Emerald 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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8020 Admin

2 months ago

8020 Admin posted a press release Emerald Health Therapeutics' Pure Sunfarms JV Records Q3 Net Sales of $24.0 Million, 69% Gross Margin, 56% EBITDA Margin, Fourth Consecutive Quarter of Positive EBITDA, and $0.63/gram All-in Production Cost in EMERALD HEALTH THERAPEUTICS INC.


Pure Sunfarms is #1 dried flower brand with Ontario Cannabis Store in October, with 16% market share and #1 selling product

Emerald to report third quarter 2019 financial results on November 29th and hold conference call December 2nd

VANCOUVER, British Columbia, Nov. 15, 2019 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF) has provided preliminary, unaudited financial results for the third quarter of 2019 for its BC-based, 50%-owned joint venture, Pure Sunfarms (“PSF”). The Company will report complete financial results for the third quarter ended September 30, 2019, after market close on Friday, November 29, 2019, and host its third quarter 2019 financial results conference call on Monday, December 2, 2019 at 10:30 a.m. ET.


Financial Data



  • Net sales for the third quarter were $24.0M and net sales year-to-date (as of September 30th (YTD)) were $71.5M. Sales for the third quarter consisted entirely of dried flower sold primarily to other licensed producers.

  • Sales volume was almost 50% higher than the previous quarter, reaching approximately 12,000 kg of cannabis in the third quarter. YTD sales were approximately 24,600 kg.

  • Gross margin before non-cash adjustments to the fair value of inventory and biological assets was 69%. YTD gross margin before non-cash adjustments to the fair value of inventory and biological assets was 75%.

  • All-in production cost was $0.63 per gram, compared to the previous quarter’s $0.65 per gram.

  • Net loss of $2.4M reflects a ($12.6M) non-cash adjustment to the fair value of inventory and biological assets. YTD net income was $46.2M.

  • Positive EBITDA of $13.3M resulted in an EBITDA margin of 56%. YTD EBITDA was $47.1M, with an EBITDA margin of 66%.

  • Net cash and cash equivalents as of September 30 was $16.1M, up from $2.4M as of December 31, 2018.


Market Performance


After receiving its processing license amendment in early September, PSF began selling and shipping its own branded packaged products to Ontario in late September and has received multiple product reorders.


Pure Sunfarms was the #1 brand, comprising multiple products, in cannabis dried flower sales and volume with the Ontario Cannabis Store (“OCS”) in the month of October, achieving market share of 16% by volume. PSF’s market share was double that of the next largest brand.


Pure Sunfarms’ Afghan Kush was the top selling dried flower product with the OCS in October, and three of the seven top-selling dried flower products with the OCS in October were Pure Sunfarm products, by volume.


In BC, Pure Sunfarms began selling branded, packaged dried cannabis products to the BC Liquor Distribution Branch (“BCLDB”) in October. The BCLDB sold out of its first order of Pure Sunfarms product in under three weeks, and has since re-ordered, and Pure Sunfarms ranked among the top ten brands by sales for all product categories in October.


“Our joint venture, Pure Sunfarms, is once again showing its industry leadership with impressive financial results and very low-cost production,” said Riaz Bandali, President and Chief Executive Officer of Emerald. “PSF has started transitioning its business model from wholesale to direct sales of packaged cannabis products into provincial retail distribution channels. We are excited about how well this transition is being accomplished and we look forward to seeing the progress of PSF’s efforts to expand distribution and to the expansion of its product line beyond dried flower into other forms of consumption.”


Upcoming milestones


Having successfully launched packaged dried flower products in Ontario and BC, with a strong brand and value proposition that is resonating with consumers, PSF will continue to focus on securing distribution in new provinces/jurisdictions.


PSF has prioritized pre-rolls as a key new offering in its product mix, which it anticipates launching within two quarters.


PSF has completed installation of extraction equipment (with processing capacity of 35,000 kilograms of biomass annually) in its new 65,000 square foot state-of-the-art processing center within the Delta 3 greenhouse facility. The processing centre has been designed for full GMP compliance and certification to allow for future exports, and is expected to be operational very soon, subject to Health Canada licensing and in-house calibration and testing. PSF intends to produce oils and other new product forms starting in the first half of 2020.


Conversion of the interior of its second 1.1 million square foot greenhouse operation, the Delta 2 greenhouse facility, for cannabis production, is ongoing. This facility is expected to double Pure Sunfarms’ annual output at full production to more than 150,000 kilograms. Conversion of the Delta 2 greenhouse facility, which has been designed for full GMP compliance and certification to allow for future exportation, remains on schedule, with cannabis production expected to commence during the second quarter of 2020. The facility is expected to be operating at its full production run-rate by the end of 2020. Pure Sunfarms has submitted to Health Canada its application for its initial cultivation license for the Delta 2 facility.


Status of supply agreement with Pure Sunfarms


Under Emerald’s 2019 Supply Agreement with Pure Sunfarms, the Company may decline to accept deliveries of product from PSF. If product is declined, PSF may sell such product to third parties. In the event of such sale, and only in certain circumstances, the Company may be required to pay to PSF an amount equal to the difference between the purchase price applicable to the Company (which is subject to adjustment based on sales by PSF to third parties in accordance with the 2019 Supply Agreement) and the price actually paid by such third parties. Between June 21, 2019 and September 29, 2019, the Company declined to accept certain deliveries of product; this product was subsequently sold by PSF to third parties. PSF has claimed that the Company is liable to PSF for an aggregate amount of approximately $7.2 million. The Company has disputed the amount of such claim. The Company is in the course of discussions with PSF regarding these matters, and the outcome of these discussions is uncertain at this time.


Emerald’s financial results for the third quarter ended September 30, 2019, which include the financial results of Pure Sunfarms on an equity basis, will be published after the market close on Friday, November 29, 2019. The Company will host a conference call on Monday, December 2, 2019 at 10:30 a.m. ET.


To access the audio broadcast, please dial (866) 652-5200, or via the Internet at: https://services.choruscall.com/links/emhtf191202.html.


An archived version of the presentation will be available for 90 days on the "Investors" section of Emerald's website: https://ir.emeraldhealth.ca/events-and-presentations.


About Emerald Health Therapeutics, Inc.


Emerald Health Therapeutics, Inc. is a Canadian licensed producer of cannabis products focused on differentiated, value-added product development for medical and adult-use customers supported by novel intellectual property, large-scale cultivation, extraction, and softgel encapsulation, as well as unique marketing and distribution channels. Its 50%-owned Pure Sunfarms operation in British Columbia, with value-oriented products, is in full production at its first 1.1 million square foot greenhouse operation, Delta 3. Pure Sunfarms’ second 1.1 million square foot greenhouse, Delta 2, is planned to be in full production by the end of 2020. Emerald’s Verdélite 88,000 square foot indoor production facility in Québec is fully licensed and increasing cultivation of premium, craft cannabis strains. Its Metro Vancouver high-quality organic greenhouse and outdoor operation is expanding production in the first of two 78,000 square foot buildings. Its Emerald Health Naturals joint venture is broadening distribution of its non-cannabis endocannabinoid-supporting product line across Canada. Emerald has contracted for approximately 1,000 acres of hemp annually in 2019 to 2022 with the objective of extracting low-cost CBD. The executive team is highly experienced in life sciences, product development, large-scale agri-business, and marketing.


Please visit www.emeraldhealth.ca for more information or contact:

Jenn Hepburn, Chief Financial Officer
(800) 757 3536 Ext. #5


Emerald Investor Relations
(800) 757 3536 Ext. #5
invest@emeraldhealth.ca


Non-GAAP Financial Measures


This press release contains references to EBITDA which is not a measure that has any standardized meaning prescribed by IFRS and is therefore referred to as a “non-GAAP measure”. Non-GAAP measures used by the Company may not be comparable to similar measures used by other companies. EBITDA is defined as “income (loss) before interest expenses, taxes, depreciation, amortization, foreign exchange losses, and the net impact of biological asset values on income.”


The Company uses this non-GAAP measure because it provides additional information regarding performance of Pure Sunfarms’ overall business that is not otherwise reflected under IFRS.


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 expansion and launch of Pure Sunfarms product lines; Pure Sunfarms securing distribution in additional provinces; Pure Sunfarms production of oils; obtaining required regulatory approvals; production and processing capacity of various facilities; expansion or conversion of facilities and the timing thereof; obtaining additional cultivation licenses and other permits; receipt of hemp deliveries; payments of amounts owed to and owed by Emerald; resolution of disputes; broadening distribution of non-cannabis endocannabinoid products; and anticipated production costs.


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, results of operations; changes in business focus and strategy; agreements with third parties; changes of law and regulations; changes of government; failure to obtain regulatory approvals or permits; failure to obtain necessary financing; results of production and sale activities; changes in prices and costs of inputs; demand for labour; demand for products; failure of counter-parties 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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