Ms. Jenn Hepburn reports
EMERALD HEALTH THERAPEUTICS PROPOSES TO AMEND WARRANT TERMS
Emerald Health Therapeutics Inc. intends to amend the terms of certain common share purchase warrants originally issued on Sept. 9, 2019.
An aggregate of 12.5 million warrants were initially issued at an exercise price of $2 per common share of Emerald in connection with a $25-million convertible debenture financing. Emerald intends to amend the exercise price of the warrants such that:
A total of 6.25 million warrants will have an exercise price of 17 cents per common share. If, at any time prior to the expiry date of the 17-cent warrants, the closing market price of the common shares on the TSX Venture Exchange is greater than 21.25 cents for 10 consecutive trading days, Emerald may deliver a notice to the holder of the 17-cent warrants, accelerating the expiry date of the 17-cent warrants to the date that is 30 days following the date of such notice.
A total of 6.25 million warrants will have an exercise price of 21 cents per common share. If, at any time prior to the expiry date of the 21-cent warrants, the closing market price of the common shares on the exchange is greater than 26.25 cents for 10 consecutive trading days, Emerald may deliver a notice to the holder of the 21-cent warrants, accelerating the expiry date of the 21-cent warrants to the date that is 30 days following the date of such notice.
All other provisions of the warrants will remain the same, and all warrants will still expire on Sept. 9, 2021.
The warrant repricing is subject to acceptance by the exchange. The holders of the warrants have consented to the warrant repricing. If the warrant repricing is accepted by the exchange, Emerald expects that holders of the 17-cent warrants will immediately exercise all such warrants for proceeds of $1,062,500 to Emerald. Emerald intends to use the proceeds for general working capital purposes.
About Emerald Health Therapeutics Inc.
Emerald Health Therapeutics is committed to cutting-edge cannabis science to create new consumer experiences with distinct recreational, medical and wellness-oriented cannabis and non-cannabis products. With an emphasis on innovation and production excellence, Emerald's three distinct operating assets are designed to uniquely serve the Canadian marketplace and international opportunities. These assets, all in full production, include: its Richmond, B.C., organic certified greenhouse operation (78,000 square feet); Verdelite, its premium craft cannabis production indoor facility in St. Eustache, Que. (88,000 square feet); and Pure Sunfarms, its 41.3-per-cent-owned joint venture in Delta, B.C., producing high-quality, affordably priced products (1.1 million square feet). Its Emerald Naturals joint venture has launched a new natural wellness product category with its non-cannabis endocannabinoid-supporting product line and is expanding distribution across Canada.
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