British Columbia-based Emerald Health Therapeutics, Inc. (TSXV:EMH) (OTCQX:EMHTF) has entered an agreement with a single Canadian institutional investor for the investor to buy 3 million units at a price of $5.00, raising $15 million.
Simultaneously the investor has agreed to purchase 2 million common shares from a control person of the company at a price of $5.00 per share. This sale will close concurrently with the offering.
Each unit of the $15 million purchase consists of one common share and one common share purchase warrant. Each warrant entitles the investor to buy one common share at $6.00 per share for 36 months following the closing.
If the closing sale price of the common shares on the TSX Venture Exchange is greater than $8.00 per share for 10 consecutive trading days at any time after the closing, the company can accelerate the expiry date of the warrants to expire on the 30th day after the company gives notice, instead of 36 months after closing.
The units will be offered in all of the provinces of Canada, except Quebec. The closing date of the offering and the secondary sale is expected to be January 10, 2018.
Emerald Health operates through Emerald Health Botanicals Inc., a wholly-owned subsidiary. Through Botanicals, Emerald is authorized to produce and sell dried medical cannabis flower and medical cannabis oil.
It currently operates an indoor facility in Victoria, BC, and is building a 500,000 sf greenhouse on 32 acres in metro Vancouver, with expansion potential to 1 million sf, if desired, to serve the Canadian recreational cannabis market upon legalization in summer of 2018.
Emerald also owns 50% of Pure Sunfarms Inc., a partnership with Village Farms International Inc. that is converting a 1.1 million sf greenhouse in Delta, BC from growing tomatoes to growing cannabis.
Emerald is part of the Emerald Health group, which develops pharmaceutical, botanical and nutraceutical products designed to offer wellness and medical benefits by interacting with the human body’s endocannabinoid system.