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Emerald Health Therapeutics Inc
Symbol EMH
Shares Issued 136,997,693
Close 2018-11-19 C$ 3.74
Market Cap C$ 512,371,372
Recent Sedar Documents

Emerald Health receives conditional approval for JV

2018-11-19 09:14 ET - News Release

An anonymous director reports

EMERALD HEALTH THERAPEUTICS RECEIVES TSX VENTURE CONDITIONAL APPROVAL OF EMERALD HEALTH NATURALS JOINT VENTURE

Emerald Health Therapeutics Inc. has received conditional approval of the TSX Venture Exchange regarding its 51:49 joint venture with San Diego-based Emerald Health Bioceuticals, to be called Emerald Health Naturals.

The company will invest $5-million for 51-per-cent equity ownership of EHN. EHB will grant EHN the exclusive Canadian distribution rights to EHB's award-winning product line in exchange for 49-per-cent equity ownership of EHN. EHB's product line consists of nutritional supplements, which use non-cannabis, non-psychoactive, plant-based bioactive compounds to support the body's endocannabinoid system.

Market research commissioned by the company identified that approximately 60 per cent of legal cannabis users also use natural health products. This strong consumer overlap between the two markets creates a unique opportunity for the company to establish its health brand through EHN and begin sales of endocannabinoid-supporting products in natural health product channels. These channels are not authorized to sell cannabis under the Canadian federal cannabis regulations for recreational use which came into force on Oct. 17, 2018. However, if these channels are approved in the future, the company expects to be well positioned to introduce its cannabis-based products into these channels.

The formation of the joint venture is a related party transaction as such term is defined in Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions as EHB is approximately 71 per cent owned by Emerald Health Sciences Inc., which is also the holder of 32 per cent of the outstanding common shares of the company. The company is relying on the exemption from the formal valuation requirements of MI 61-101 set out in Section 5.5(b) of MI 61-101 and the exemption from the minority shareholder approval requirements of MI 61-101 set out in Section 5.7(a) of MI 61-101 in respect to the creation of the joint venture.

The parties are in the process of finalizing definitive documentation with respect to the joint venture. Formation of the joint venture is conditional upon final regulatory approval and settlement of the definitive documentation.

About Emerald Health Therapeutics Inc.

Emerald Health Therapeutics is a licensed producer under Canada's Access to Cannabis for Medical Purposes Regulations. Emerald Health Therapeutics' 50-per-cent-owned Pure Sunfarms in British Columbia is completing a sophisticated 1.1-million-square-foot greenhouse; its Agro-Biotech operation in Quebec is completing a 75,000-square-foot indoor facility. Both facilities are in commercial production. Emerald Health Therapeutics has also contracted for approximately 500 acres of hemp harvest in 2018 and 1,000 acres in 2019 to 2022 with the goal of extracting low-cost cannabidiol.

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