Emerald Health Archives - Green Market Report

Debra BorchardtDebra BorchardtJanuary 6, 2020
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3min2320

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.


Debra BorchardtDebra BorchardtMay 1, 2019
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4min5250

Emerald Health Therapeutics, Inc.  (TSXV: EMH) (OTCQX: EMHTF) delivered fourth quarter and 2018 results along with an update of its first-quarter sales. The revenue in the fourth quarter was $1.1 million versus last year’s $279 thousand for the same time period. The net loss in the fourth quarter was $13.9 million, higher than the third quarter’s losses of $6.4 million.

2018

The company reported total sales of $2.1 million for the full year 2018 and total net losses of $30.9 million. Emerald has had losses of $52 million since inception.

“In the past year, we have worked closely with our 50/50 venture partner to bring into full production one of the single largest cannabis growing assets in the world. Pure Sunfarms’ 1.1 million square foot facility is now rapidly increasing production and sales. By leveraging our own technical expertise and infrastructure with strong partners in 2018, we solidified key building blocks with respect to production/supply, distribution, processing in the form of large-scale extraction, softgel encapsulation, and product innovation,” said Avtar Dhillon, MD, President and Executive Chairman of Emerald.

Pure Sunfarms

The company said that its first-quarter sales were $2.6 million. With regards to its BC-based Pure Sunfarms joint venture, Emerald noted that the fourth quarter 2018 sales were $4.9 million and the first quarter sales were expected to exceed $14 million. The company was able to records $1.4 million in the fourth quarter as a share of income from Pure Sunfarms. Emerald entered into supply agreements with Pure Sunfarms to purchase 40% of production in 2018 and 2019 as well as 25% of total production in 2020 through 2022.

Verdalite Sciences Acquisition

Emerald Health also stated that Verdélite Sciences and Verdélite Property Holdings agreed to take $7.5 million of the $22.5 million they were to receive as the final payment for their shares of Verdélite in shares of Emerald in a five-day weighted average price less 10%.  Emerald is to pay the remaining $15 million of the purchase price to the Verdelite on or before May 30, 2019.

On May 2, 2018, Emerald acquired 100% of  Verdélite and the shareholder loans payable by Verdélite, for a total consideration of $90 million, payable 50% in cash and 50% in shares. The company paid $22.5 million in cash upon closing and $45 million was satisfied by the issuance of 9,911,894 common shares of which 4,955,947 Common Shares will be held in escrow until May 1, 2019 pursuant to an escrow agreement.

“By further building upon our intellectual property and strategic partnerships, as well as our own internal expertise, we are working hard to increase market penetration through the development of new and differentiated ingestible and non-combustible products if, as expected, they become allowable before the end of 2019. This will coincide with the ongoing and substantial expansion of the adult-use retail system – creating significant opportunity for the Company in 2019 and what we anticipate to be a year of extraordinary sales growth for Emerald.”

On March 13, Emerald filed a final short form base shelf prospectus for the issuance and secondary sale of up to $150,000,000 of common shares.

 


William SumnerWilliam SumnerAugust 23, 2018
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6min7020

It’s time for your Daily Hit of cannabis financial news for August 23, 2018.

On The Site

Canopy Growth Corporation

Canopy Growth Corporation (CGC) is spinning off its venture capital investment arm called Canopy Rivers Corporation. The company has set September 12, 2018, as the date for a shareholder meeting regarding the proposed combination of Canopy Rivers and AIM2 Ventures. It had been previously announced that Canopy Rivers had entered into an agreement with AIM2 resulting in a reverse take-over of AIM2 by Canopy Rivers. The transaction is expected to close during the week of September 17, 2018 subject to the approval by the TSX Venture Exchange. The new symbol will be RIV.

CannaRoyalty

Canadian-based CannaRoyalty (CNNRF) reported its second-quarter earnings for the period ending June 30, 2018, with revenues increasing 266% to C$3.5 million versus last year’s revenues of C$960,157. In addition to that, CannaRoyalty made huge strides by delivering net income of C$9.3 million for the quarter versus last year’s net loss of C$2 million. The net income per diluted share was $0.17 as compared to a net loss per diluted share of $0.05 for the same time period in 2017.

In Other News

Emblem Corp.

Emblem Corp. (EMC), announced that it had secured a working capital advance for Natura Naturals Holdings Inc. The advance will help support the completion of Phase 1 construction of a 662,000 licensed greenhouse operated by Natura that is undergoing phased conversion and retrofitting while both companies negotiate a definitive agreement for Emblem to acquire Natura. The advance is made up of a one-year convertible debenture for a sum total of of up to $2,000,000. The advance is convertible into Natura shares at $0.80 per share plus one full share purchase warrant exercisable at $1.05.

Khiron Life Sciences

Khiron Life Sciences (KHRN) announced that it has priced and sized its marketed offering of common shares at a price of $0.90 per share to raise a total of up to $11.25 million. The offering will be overseen by a syndicate of agents led by Canaccord Genuity Corp. and including GMP Securities L.P., Sprott Private Wealth LP, and Cormark Securities Inc. Additionally, the agents have been granted an over-allotment option by the company to offer and sell up to an additional 15% of the number of share sold in the offering. The company expects to file a final short form prospectus form, in respect to the offering, on or around September 6, 2018 and the offering is expected to close on or around September 13, 2018.

Emerald Health Therapeutics Inc.

Emerald Health Therapeutics (EMH) and Village Farms International Inc. (VFF) announced that their joint venture, Pure Sunfarms, has received from Health Canada its third amendment to its cultivation license for its Delta 3 greenhouse in Delta, BC. The amendment will allow Pure Sunfarms to expand its production capacity to approximately 420,000 square feet of the facility’s 1.1 million square feet. “We are thrilled with the rapid pace at which the Pure Sunfarms team continues to complete conversion of additional production area, as well as the rapid pace at which it has been able to secure amendments to its cultivation license to steadily expand production,” said Michael DeGiglio, CEO of Village Farms. “It’s a testament to the value of decades of large-scale operational experience combined with an unwavering approach to doing things the right way.”

Naturally Splendid

Naturally Splendid (NSPDF) reported second-quarter results for the period ending June 30, 2018, and recorded a net loss of $1,565,098 during the six months ended June 30, 2018, compared to a loss of $2,029,552 during the six months ended June 30, 2017.   The decrease in net loss was due to the sale of POS BPC Manufacturing Corp. which provided for a gain on sale of $1,535,096, offset by an increase in selling and distribution costs of $5,273 and Administrative expenses of $1,041,721 mainly due to the addition of the Prosnack business which were not included in the expenses in the comparative period, as the acquisition occurred on October 18, 2017.

Naturally Splendid recorded sales of $804,502 during the six months ended June 30, 2018, compared to $1,068,949 for the six months ended June 30, 2017.  This revenue decrease was mainly due to the collapse of sales of bulk hemp seed to South Korea where the Company had recorded $Nil bulk sales in the current quarter compared to $245,400 in the six months of 2017.


StaffStaffApril 2, 2018
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4min13280

Emerald Health Therapeutics, Inc. (EMHTF) reported its annual 2017 earnings and fourth quarter results. Revenue for the full year increased 270% from C$253,321 in 2016 to C$937,654 in 2017. Net losses for the year also increased from (C$2.9 million) in 2016 to (C$8.7 million) in 2017. The net loss per share went from five cents in 2016 to a net loss per share of ten cents in 2017.

“Following the Canadian federal government’s introduction in April 2017 of legislation to broadly legalize adult-use cannabis, Emerald put in motion multiple strategic steps focused on placing the company in the top tier of Canadian licensed producers and pursuing international opportunities,” said Chris Wagner, CEO of Emerald Health Therapeutics. “The company made important leadership hires; took steps to assure significant, secure supply of cannabis via large-capacity production facilities; struck multiple strategic collaborations and investments; leveraged its extensive life science industry expertise to initiate product innovation and intellectual property formation; and added substantially to its treasury.”

Revenue for the fourth quarter of 2017 was C$279,362 versus C$124,251 in 2016 for the same time period. The net loss for the fourth quarter was (C$4 million) versus a net loss of (C$880,424) for the same time period in 2016.

The company is in the throes of a building phase. According to a statement, Emerald said that conversion of the first 250,000 ft2 section of the Delta 3 greenhouse to cannabis production was substantially complete, with the conversion of the remainder of the 1.1 million ft2 greenhouses ongoing and on schedule. The company also said that senior growing, financial, human resources and operational personnel, including the established team transferred from Village Farms, were in place for production ramp-up.

In addition to the Delta 3 greenhouse conversion project, Emerald has completed a significant amount of construction at its Metro Vancouver site and in October 2017 applied to Health Canada to produce cannabis at this facility.

Emerald has also signed deals with DMG Blockchain to form a joint venture, to be named CannaChain Technologies, to develop a blockchain-based supply chain management system and e-commerce marketplace for the legal cannabis industry. Plus, it signed a Letter Of Intent with Namaste Technologies to collaborate on strategic business opportunities worldwide and develop a fully integrated e-commerce platform to serve as a retail channel for the Company’s patient

Wagner added, “We look forward to a transformational year in 2018 with the expected initiation of broad legalized adult-use and our vaulting into the top tier of production capacity, enhanced branding, sophisticated sales and marketing, and progression of our medical product development and patenting plans. We are executing well on the projects we have announced and are assessing an array of potentially impactful new business opportunities.”


StaffStaffMarch 5, 2018
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4min14260

Aurora Cannabis 

Aurora Cannabis (ACBFF) suggested that it might follow in Cronos Group’s (CRON) footsteps to the NASDAQ (NDAQ). A tweet to the company asked whether it might make a similar move, Cam Battley responded, “Well, in Canada we uplisted from CSE to TSXV to TSX. And in the US from OTCQB to OTCQX. So what would be your guess? ;)”

Cannabis Wheaton Income Corp.

Cannabis Wheaton (CBWTF) announced it has entered into a binding definitive agreement with its streaming partner FV Pharma Inc. to develop all aspects of FV’s cannabis cultivation facility in mutually agreed staged phases with the potential to build out the largest indoor cannabis cultivation facility in the world. The FV Pharma state-of-the-art facility hosts an existing 620,000 square feet of building space and is famously known as the former KRAFT food manufacturing facility.

Alliance Growers Corp.

Alliance Growers Corp. announced the addition of state-of-the-art greenhouses for year-round nurseries of cannabis plants for the production of a propriety CBD strain at the Company’s Cannabis Botany Centre. The initial rollout plans for up to 200,000 square feet of automated glass greenhouses with P.L. high-end horticultural lighting. The Alliance Growers’ greenhouses will be capable of producing over 300,000 grams per week or 15,600 kilograms per year of dried CBD cannabis.

 Lineage Grow Company

Lineage Grow Company has listed its common shares, and expects to begin trading effectively on Monday, March 5th, under the symbol “BUDD”. As a major shareholder in the company as well as a strategic partner with projects in Washington, Nutritional High is pleased to see Lineage Grow Company achieve this major corporate milestone.

The Hydropothecary Corporation recently signed a letter of intent to supply its home province of Quebec with 20,000 kilograms of cannabis products in the first year of legalization. That is the largest supply agreement announced in Canada to date, and the company says it is just the beginning. “This supply arrangement is an important step for Hydropothecary,” said CEO Sébastien St-Louis in a press release announcing the deal. “We are honoured by the opportunity to supply cannabis in our home province and we want Quebecers to know that we are committed to providing safe and high-quality products for the adult-use recreational market.”

Emerald Health Therapeutics, Inc.

Emerald Health  (EMHTF) and Village Farms International, Inc.  (VFFIF) today announced that Health Canada has issued a Cultivation Licence for their co-owned Delta 3 greenhouse operation under Canada’s Access to Cannabis for Medical Purposes Regulations. This optimally-designed 1.1 million ft2 cannabis growing facility is located in one of the best growing climates in Canada in Delta, BC, and is conservatively projected to produce 75,000 kg of quality cannabis annually at full production.


William SumnerWilliam SumnerJanuary 26, 2018
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3min22190

Emerald Health Therapeutics, Inc. (EMHTF), along with its subsidiary company Emerald Health Sciences, Inc., announced today the completion of a letter of intent to form a joint venture with DMG Blockchain Solutions Inc., a blockchain supply chain management solution developer and leading crypto mining hosting provider.

Named CannaChain Technologies, the joint venture will develop a cannabis industry focused, blockchain-based, supply chain management system and e-commerce marketplace.

“There are notable new applications of blockchain technology to validate and assure the source, quality, and integrity of products such as diamonds, wine, and art, along with coffee and other food products,” said Avtar Dhillon, MD, Executive Chairman of Emerald Health Therapeutics, in a statement. “Cannabis is also a prime industry in which to apply blockchain supply management based on the broad spectrum of plant and growing attributes, as well as product innovation potential

As one of the earliest licensed producers under Canada’s under Access to Cannabis for Medical Purposes Regulations, Emerald brings to the joint venture provide industry expertise and know-how while DMG Blockchain Solutions will use its knowledge of blockchain to build a supply management system design for the unique requirements of the cannabis industry.

Serving cannabis producers, distributors, shippers, government agencies, and consumers; the parties aim to leverage blockchain’s ability to create an immutable record to instill an enhanced trust of origin, quality, and safety.

The platform will aid cannabis business owners to adhere to Health Canada’s reporting requirements by logging each step in the supply chain on blockchain; creating an irrefutable record of a cannabis product’s journey from seed to sale. Regulatory reporting requirements would be automated.

The system will be built off of an existing open source blockchain platform, which should allow for cross-industry collaboration and integration that can support global business transactions. Likewise, the e-commerce marketplace would be based on the platform and facilitate the sale of a broad product selection.

As no definitive terms have been agreed to, the parties intend to commence negotiation of definitive documentation relating to CannaChain; with key terms such as ownership of the joint venture, fees and commissions still needing to be finalized. Development of the platform will not begin until the final terms have been settled and definitive documentation has been executed.

Cannabis Blockchain Craze

Emerald is the latest cannabis company to jump into blockchain technology. mCig, MassRoots and India Globalization Corp. have all decided to expand into blockchain technology.



About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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