Emerald Announces Partial Exercise of Over-Allotment Option in Connection with Recent $24.4 Million Bought-Deal


VICTORIA, BC, April 21, 2017 /CNW/ - Emerald Health Therapeutics Inc. (TSXV: EMH) ("Emerald" or the "Company") is pleased to announce the closing today of the issuance of an additional 1,465,100 common shares (each, a "Share") and 987,750 common share purchase warrants (each, a "Warrant") for gross proceeds of $2,758,923 (the "Over-Allotment Offering"). Each Warrant entitles the holder thereof to acquire one Share at a price of $2.60 per Share until April 20, 2019.  In the event that the closing price of the 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.

The Over-Allotment Offering was completed pursuant to the exercise in part of an over-allotment option granted by the Company to Eight Capital (the "Underwriter") in connection with the Company's bought-deal offering of 13,170,000 units ("Units") for gross proceeds of $24.4 million, which closed on April 20, 2017. Each Unit consists of one Share and one half of one Warrant.

Emerald issued to the Underwriter a total of 43,953 compensation options in connection with the Over-Allotment Offering.  Each such compensation option entitles the holder to acquire a Unit at a price of $1.85 per Unit until April 20, 2019.

The Company intends to use the net proceeds of the exercise of the Over-Allotment Offering for general corporate purposes.

The Units were offered by way of a base shelf prospectus and a shelf prospectus supplement 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 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; 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.

For further information: Sandy Pratt, CFO, 250-818-9838, invest@emerald.care


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