Ms. Jenn Hepburn reports
EMERALD HEALTH THERAPEUTICS TERMINATES LAND SUB-LEASE AND OUTDOOR CULTIVATION AGREEMENTS
Emerald Health Therapeutics Inc. has terminated certain related-party agreements pertaining to its cannabis cultivation operation in metro Vancouver. Previously existing rights and continuing usage of the land and its cultivation operation in Metro Vancouver are unaffected by these terminations.
As previously announced on Oct. 4, 2019, Emerald entered into a sublease agreement and a cultivation agreement with Emerald Health Sciences Inc. (EHS), a control person of Emerald. Emerald and EHS have agreed to not pursue the transactions contemplated by such agreements and have agreed to terminate both the sublease agreement and the cultivation agreement. Emerald confirms that no payments were made to EHS under either the sublease agreement or the cultivation agreement. Emerald's previously existing rights related to the 12-acre land parcel that was subject to the sublease agreement and cultivation agreement are unaffected by these terminations.
EHS is a control person of Emerald. Accordingly, EHS is a related party of Emerald for the purposes of National Instrument 61-101 (Protection of Minority Security Holders in Special Transactions), and the transactions discussed herein are related-party transactions. Each of the transactions described herein is exempt from the valuation and minority approval requirements of NI 61-101 pursuant to the exemptions in sections 5.5(a) and 5.7(a) of NI 61-101.
About Emerald Health Therapeutics Inc.
Emerald Health 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., greenhouse operation (78,000 square feet) capable of producing organic certified product; 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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