Emerald Health Therapeutics, Inc. (TSXV: EMH)(OTCQX: EMHTF) has agreed to the second tranche of funding for the company for approximately $4.5 million. At the end of December, the company closed on the initial tranche of a private placement that was announced on December 16, 2019. The initial tranche was for gross proceeds of $1.5 million issued at a price of $0.29 per unit.
The second tranche was also issued at a price of 29 cents per share. The company was lately trading at roughly 25 cents per share. The private placement is set to purchase 10,344,827 units of Emerald for total gross proceeds of $3 million. The company said that these units will represent the remainder of the financing previously announced on December 16, 2019, however, the securities to be issued under the Offering will be offered by way of a shelf prospectus supplement to be filed in all of the provinces of Canada pursuant to National Instrument 44-102 – Shelf Distributions and will not be subject to a hold period.
Each Unit will consist of one common share of Emerald and one common share purchase warrant. Each warrant will entitle the Investor to acquire one common share of Emerald at a price of $0.385 per Warrant Share for a period of five years following the closing of the Offering.
The company said it plans to use the net proceeds for general working capital purposes and it is expected to close on or about January 13, 2020. Emerald also said it has also reached an agreement with the holder of the Convertible Debentures issued on September 10, 2019, to settle accrued interest on the Convertible Debentures to December 31, 2019, in the amount of $383,562 by issuing an additional 1,322,627 Common Shares (the “Debt Shares”) at a deemed value of $0.29 per share. The Debt Shares will also be qualified under the Prospectus Supplement. Issuance of the Debt Shares is subject to the approval of the TSX Venture Exchange.