Emerald Announces Closing of $24.4 Million Bought Deal
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
VICTORIA, April 20, 2017 /CNW/ -Emerald Health Therapeutics Inc. (TSXV: EMH) ("Emerald" or the "Company") is pleased to announce the closing today of its public offering (the "Offering") announced on April 10 and 11, 2017. Pursuant to the Offering, the Company has issued 13,170,000 units (the "Units") at a price per Unit of $1.85 (the "Offering Price"), for gross proceeds of $24,364,500. Eight Capital (the "Underwriter") acted as underwriter for the Offering.
The Company also granted the Underwriter an over-allotment option to purchase up to an additional 1,975,500 Units at the Offering Price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the Offering. If this option is exercised in full, an additional $3,654,675 will be raised pursuant to the Offering and the aggregate proceeds of the Offering will be $28,019,175. Such over-allotment option remains outstanding and has not been exercised as of the date of this news release.
Each Unit consists of one common share of the Company (a "Share") and one-half of one common share purchase warrant (each full warrant, a "Warrant"). Each Warrant entitles the holder thereof to acquire one Share at a price of $2.60 per Share for a period of 24 months following the closing of the Offering. In the event that the closing price of the Company's Shares on the TSX Venture Exchange, or such other principal Canadian stock exchange on which the Shares are then listed, is greater than $3.50 per Share for a period of 20 consecutive trading days, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 30th day after such notice is given.
Emerald issued to the Underwriter a total of 395,100 compensation options in connection with the Offering. Each such compensation option entitles the holder to acquire a Unit at a price of $1.85 per Unit for a period of 24 months following the closing of the Offering.
The Company intends to use the net proceeds of the Offering to accelerate facility expansion, to carry out research and development and for working capital and general corporate purposes.
The Units were offered by way of a base shelf prospectus and a shelf prospectus supplement (together, the "Prospectus") filed in all of the provinces of Canada, except Quebec.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction 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.
Emerald Health Therapeutics Inc.
Emerald Health Therapeutics, Inc. operates primarily through Emerald Health Botanicals Inc. ("Botanicals"), a wholly owned subsidiary of the Company and a Licensed Producer under the Access to Cannabis for Medical Purposes Regulations (the "ACMPR"). Botanicals is authorized to cultivate and sell both dried medical cannabis flowers and medical cannabis oils in Canada. Botanicals currently operates an indoor cultivation facility in Victoria, British Columbia, and plans to construct a much larger purpose built hybrid greenhouse facility on 32 acres in metro Vancouver. Botanicals prides itself on being one of Canada's most medically focused licensed producers and on having one of the industry's most qualified management teams with respect to pharmaceutical drug discovery, development and distribution. Botanicals intends to capture unique niches in both the medical and future adult use cannabis markets through its proprietary strains, defensible intellectual property, and superb client experience.
Please visit http://www.emeraldhealth.ca/ for more information.
Cautionary Statements Regarding Forward Looking Information
Certain statements in this press release constitute forward-looking statements, within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, are "forward-looking statements".
We caution you that such "forward-looking statements" involve known and unknown risks and uncertainties that could cause actual and future events to differ materially from those anticipated in such statements. Forward-looking statements include, but are not limited to, the exercise of the over-allotment option and the receipt of the proceeds thereof, the use of proceeds from the Offering and construction of facilities.
Emerald Health Therapeutics Inc. does not intend, and does not assume any obligation, to update these forward-looking statements except as required by law. These forward-looking statements involve risks and uncertainties relating to, among other things, variations in market conditions; the Underwriter's discretion as to whether to exercise the over-allotment option and other risk factors described in the Prospectus and the Company's other filings with the applicable Canadian securities regulators, which may be viewed at www.sedar.com. Actual results may differ materially from those expressed or implied by such forward-looking statements.
"Neither 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."
SOURCE Emerald Health Therapeutics, Inc.
Sandy Pratt, CFO, 250-818-9838, [email protected]
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