VICTORIA, BC, March 11, 2016 /CNW/ - Emerald Health Therapeutics Inc. (TSXV: EMH) ("Therapeutics") announced today that it has entered into a debt settlement agreement (the "Agreement") with Emerald Health Sciences Inc. ("Sciences"), a creditor and major shareholder of Therapeutics, pursuant to which Therapeutics has agreed to issue an aggregate of 8,097,651 common shares (the "Shares") at a deemed price of $0.172 per Share.
The total amount of indebtedness settled by the Agreement is $1,392,796, of which $1,374,808 is payable to Sciences for loans made to Therapeutics pursuant to a previously announced loan agreement and the remainder of $17,988 is payable to Sciences for management services. Therapeutics decided to satisfy this outstanding indebtedness with Shares as Therapeutics does not currently have the funds available to pay the amounts outstanding. Sciences currently holds approximately 44% of the issued and outstanding shares of Therapeutics and upon issuance of the Shares, will hold approximately 52%.
The Agreement is subject to the approval of the TSX Venture Exchange (the "Exchange"). Therapeutics will issue the Shares once the debt settlement transaction contemplated by the Agreement has been approved by the Exchange.
Emerald Health Therapeutics Inc.
Emerald Health Therapeutics wholly owns Emerald Health Botanicals. Emerald Health Botanicals holds a License under the Marihuana for Medical Purposes Regulations (Canada) to cultivate and sell medical cannabis out of its facility located in Victoria, British Columbia. It also holds a Supplemental License to extract medical cannabis oils and capsules and is in the process of obtaining approval from Health Canada for a Supplemental License to sell these products.
ON BEHALF OF THE BOARD
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 plans, programs, 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 debt settlement transaction, the number of and price of shares to be issued, commercial operations, including production and sales of medical marijuana, projected size of market, quantities of future medical marijuana production, completion of production facilities 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, closing of the debt settlement transaction, number and price of shares to be issued, results of production and sale activities, the Company's historical experience with medical marijuana operations, uninsured risks, regulatory changes, availability of production facilities, timeliness of government approvals and the granting of permits and licenses, changes in prices, actual operating and financial performance of facilities, equipment and processes relative to specifications and expectations. Actual results may differ materially from those expressed or implied by such forward-looking statements.
SOURCE Emerald Health Therapeutics Inc.
For further information: Please contact Sandy Pratt at 250-818-9838 or [email protected]