Plan would expand total production space to 100,000 square feet
VICTORIA, Nov. 28, 2016 /CNW/ - Emerald Health Therapeutics Inc. (TSXV: EMH) ("Emerald" or the "Company") today announced that it has executed a non-binding letter of intent to lease up to 32 acres of Agricultural Land Reserve (ALR) lands in Metro Vancouver, BC. Having successfully grown and sold dried cannabis and oils under the Marihuana for Medical Purposes Regulations (MMPR), now Access to Cannabis for Medical Purposes Regulations (ACMPR), Emerald is moving forward on its plan to expand its operations and capability.
Emerald intends to significantly increase its production of cannabis and cannabis oils through a multi-phase expansion plan that leverages its experience in building, growing, and selling cannabis under Health Canada regulation for Licensed Producers (LP). In phase I, Emerald proposes to build a modular hybrid greenhouse growing facility with 50,000 square feet of production space using its team of experienced builders, designers, and growers. The Company's proposed expansion plans will require approval from Health Canada and the Company expects that its procedural expertise and experience as an LP under the ACMPR will assist in obtaining the required approvals from Health Canada.
Concurrently with phase I, Emerald plans to begin phase II expansion of its modular facility to add an additional 50,000 square feet of production space and advanced processing facilities intended to be operational soon after phase I. Emerald expects its planned facilities would be one of the lower-cost cannabis production facilities in Canada, taking full advantage of the moderate temperatures, number of hours of sunshine and lower electricity costs enjoyed by ALR lands in Metro Vancouver compared to other provinces.
"Having the experience and capability to scale up operations combined with the opportunity to lease up to 32 acres of ALR lands is a game changer for Emerald," stated Jim Heppell, Lead Director of the Company. "We have researched facilities built by other Licensed Producers and have brought in our contacts from the life science industry to design one of the most cost-efficient cannabis production facilities in Canada. We have spent many months of planning and with the years of experience of our management team we expect to be able to build out Phases I and II in a timely fashion and feed the production and consumer demands of the anticipated Canadian recreational market. Emerald's plans would result in the company having 100,000 square feet of production space with room to increase its total production space to more than one million square feet in the future."
ON BEHALF OF THE BOARD
Emerald Health Therapeutics Inc.
Emerald Health Therapeutics wholly owns Emerald Health Botanicals, which has been granted a license under the ACMPR to cultivate and sell medical cannabis, and to produce and sell medical cannabis oils in Canada.
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 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, statements with respect to the lease of new property, completion of build-out of new production facilities, increased production of cannabis and cannabis oils, receipt of Health Canada approvals, commercial operations, including production and sales of medical marijuana, anticipated costs and revenues, projected size of market, quantities of future medical marijuana production and other information that is based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.
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, inability to negotiate and sign a definitive lease agreement, failure to obtain Health Canada and other regulatory approvals, failure to obtain necessary capital, results of production and sale activities, the Company's historical experience with medical marijuana operations, uninsured risks, regulatory changes, availability of production facilities, changes in prices and costs, actual operating and financial performance of facilities, equipment and processes relative to specifications and expectations as well as the other risk factors set out in the Company's annual information form. Actual results may differ materially from those expressed or implied by such forward-looking statements.
SOURCE Emerald Health Therapeutics, Inc.
For further information: Sandy Pratt, CFO, Emerald Health Therapeutics, P: 250-818-9838, E: [email protected]