VICTORIA, BC, Nov. 16, 2016 /CNW/ - Emerald Health Therapeutics Inc. (TSXV: EMH) ("Therapeutics") announced today that it has completed its previously announced private placement (the "Offering") of 4,411,764 units (a "Unit") of the Company with Emerald Health Sciences Inc. ("Sciences"), a creditor and major shareholder of Therapeutics at a price of $0.68 per Unit. Each Unit will consist of one common share (each, a "Share") and one common share purchase warrant with each warrant entitling the holder thereof to acquire an additional Share of Therapeutics at a price of $0.85 per share for a period of five years from the closing date.
In accordance with applicable securities laws, the Shares issued to Sciences are subject to a 4-month hold period from the date of issuance. As a result of the closing of the Offering, Sciences now holds an aggregate of 45,646,555 Shares, representing 67.5% of the issued and outstanding common shares of Therapeutics and 8,489,451 common share purchase warrants (each, a "Warrant"). Assuming the exercise of the Warrants, Sciences would hold an aggregate of 54,136,006 Shares representing approximately 71.2% of the issued and outstanding common shares of Therapeutics (on a partially-diluted basis giving effect only to the exercise of the Warrants).
As Sciences is an insider of the Company, the participation in the Offering is considered to be a "related party transaction", as defined under Multilateral Instrument 61-101 ("MI 61-101"). The Company has relied 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).
ON BEHALF OF THE BOARD
Emerald Health Therapeutics Inc.
Emerald Health Therapeutics wholly owns Emerald Health Botanicals. Emerald Health Botanicals holds a License under the Access to Cannabis for Medical Purposes Regulations (Canada) to cultivate and sell medical cannabis out of its facility located in Victoria, British Columbia.
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SOURCE Emerald Health Therapeutics, Inc.
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