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or Name
USA
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Emerald Health Therapeutics Inc
Symbol EMH
Shares Issued 149,830,144
Close 2019-07-10 C$ 2.30
Market Cap C$ 344,609,331
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Emerald Health JV hits pot production rate of 75,000 kg

2019-07-11 09:07 ET - News Release

Mr. Rob Hill reports

EMERALD HEALTH THERAPEUTICS' JOINT VENTURE ACHIEVES ITS FULL ANNUALIZED PRODUCTION RUN-RATE

Emerald Health Therapeutics Inc.'s 50-per-cent-owned joint venture for large-scale low-cost high-quality cannabis production, Pure Sunfarms, has achieved its full production run rate of 75,000 kilograms of dried cannabis at its 1.1-million-square-foot Delta 3 greenhouse in Delta, B.C.

"Pure Sunfarms' growing operation is setting the standard for large-scale low-cost high-quality cannabis production, which we believe serves as a strong indication of what the combined expertise of Emerald and Village Farms can accomplish," said Dr. Avtar Dhillon, executive chairman and president of Emerald. "As quality, yield and cost of production of Pure Sunfarms continue to exceed our initial goals, we are building a tremendously valuable asset in the Pure Sunfarms operation and achieving a significant contribution to Emerald's growth strategy."

Pure Sunfarms has been profitable in its initial two quarters, with its gross margins benefiting from the start of its packaged product sales to the Ontario Cannabis Store and other retailers following the anticipated near-term approval by Health Canada for Pure Sunfarms to sell directly to provincial/territorial and private retailers. Pure Sunfarms is also progressing on in-house extraction capabilities, which it expects to be operational this year.

Pure Sunfarms has commenced conversion of its second 1.1-million-square-foot (25 acres) greenhouse operation, Delta 2, for cannabis production, which will double Pure Sunfarms' annual output at full production to 150,000 kilograms. Pure Sunfarms expects to complete its first harvest at the Delta 2 facility by mid-2020, ramp to an annualize full production run rate by the fourth quarter of 2020 and operate at full production of 75,000 kilograms throughout 2021.

About Emerald Health Therapeutics Inc.

Emerald Health is a Canadian licensed producer of cannabis products, with strategic initiatives focused on differentiated value-added product development for medical and adult-use customers, supported by novel intellectual property, large-scale cultivation, extraction and softgel encapsulation, as well as unique marketing and distribution channels. Emerald's two other wholly owned facilities in Quebec, a high-quality indoor growing and processing facility, and British Columbia, an organic greenhouse and outdoor operation, are completing construction and are working toward final permitting. Emerald has also contracted for approximately 1,200 acres of hemp annually in 2019 to 2022, with the objective of extracting low-cost cannabidiol. Its team is highly experienced in life sciences, product development, large-scale agribusiness and marketing.

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