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Emerald Health prepays September, 2019, debentures

2020-11-24 09:11 ET - News Release

Ms. Jenn Hepburn reports


Emerald Health Therapeutics Inc. has fully prepaid in cash all amounts owing under the convertible debentures issued to certain Canadian institutional accredited investors by the company on Sept. 9, 2019. As a result, the convertible debentures are now terminated and the company has no further obligations thereunder.

The convertible debentures accrued interest at a rate of 5 per cent per annum and were due to mature on Sept. 9, 2021, with no right for the company to prepay amounts owing thereunder. However, the debentureholders consented to the early repayment of all amounts owing under the convertible debentures in exchange for payment of a consent fee of $81,596.12. A total of $25,567,897.49 in cash was paid by the company to the debentureholders, representing $25-million in principal repayment, $486,301.37 in accrued interest and the consent fee.

"With Emerald's recent closing of the sale of its interest in Pure Sunfarms Corp., we have greatly improved our balance sheet and working capital balance. Immediately eliminating these convertible debentures in their entirety, over 10 months in advance of their maturity date, eliminates the single largest liability, by a wide margin, on our balance sheet and removes the requirement to make further interest payments," said Riaz Bandali, chief executive officer and president of the company.

"Many of our peers in the cannabis sector continue to carry debt, add debt and/or refinance debt that may not be readily repayable upon maturity, posing the risk of insolvency, additional punitive dilution, substantial increases in interest payments, and/or possibly other onerous new penalty and security provisions. We have eliminated this risk for our shareholders.

"Repayment of these debentures fulfills one important objective in our go-forward plan and, importantly, allows Emerald to be well positioned to enact its new growth strategy in a self-sustainable manner."

Emerald third quarter financial reporting

Emerald will provide its financial results for the third quarter ended Sept. 30, 2020, after the market close on Monday, Nov. 30, 2020, and will host a conference call on Tuesday, Dec. 1, 2020, at 10:30 a.m. ET.

To access the audio broadcast, please dial 866-652-5200, or via the Internet.

An archived version of the presentation will be available for 90 days on the investors section of Emerald's website.

About Emerald Health Therapeutics Inc.

Emerald is committed to creating new consumer experiences with distinct recreational, medical and wellness-oriented cannabis products, with an emphasis on science-based innovation and product excellence.

We seek Safe Harbor.

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