The TSX Venture Exchange has accepted for filing documentation relating to the non-arm's-length purchase by the company from Emerald Health Hemp Inc. (EHH), a wholly owned subsidiary of Emerald Health Sciences (EHS), of 134,867 kilograms of industrial hemp biomass for an aggregate of $2,022,781 pursuant to the terms of a hemp supply agreement dated Sept. 25, 2018, as amended on Oct. 3, 2019. Pursuant to the terms of the amended supply agreement, the company was required to pay EHH the reasonable and documented costs incurred by EHH in exchange for the industrial hemp biomass product. Furthermore, on Jan. 21, 2020, the company and EHH entered into an agreement to terminate the amended supply agreement effective immediately, except for those rights, liabilities and obligations that arose or accrued prior to the date of the termination agreement, which consisted of the aforementioned $2,022,781 in purchase price consideration.
EHS is a non-arm's-length party in relation to the company as it is a control entity of the company and the following insiders of the company are also directors of EHS: Avtar Dhillon, Jim Heppell and Punit Dhillon.
For further information, please refer to the company's news releases dated Sept. 26, 2018, Oct. 4, 2019, and Jan. 31, 2020, which are available under the company's profile on SEDAR.
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