Mr. Riaz Bandali reports
EMERALD HEALTH THERAPEUTICS SETTLES OUTSTANDING AMOUNTS
Emerald Health Therapeutics Inc. has settled all outstanding amounts owing to the original vendors in connection with Emerald's 2018 acquisition of Verdelite Sciences Inc. and Verdelite Property Holdings Inc.
The subsidiaries were purchased by Emerald from the vendors in 2018 and a portion of the purchase price payable to the vendors was due to be paid on the first anniversary of closing of the transaction. Emerald renegotiated the terms of the payment of the outstanding amounts owing to the vendors in 2019. Emerald is pleased to announce that it has paid to the vendors an aggregate amount of $9-million, fully settling all remaining amounts owing to the vendors (including accrued interest). Emerald no longer has any liability to the vendors with respect to the purchase of the subsidiaries.
The subsidiaries together own and operate a premium 88,000-square-foot craft cannabis production indoor facility in St. Eustache, Que. Further to Emerald's news release dated Dec. 4, 2020, Emerald intends to continue to operate this facility and produce quality product for sale under its Souvenir brand in Quebec.
"We are pleased to have eliminated our obligation related to this deferred payment amount on favourable terms. The completion of this payment renders Emerald free of all significant third party debt on its balance sheet. It also eliminates $1.5-million in annual interest charges, therefore preserving cash and minimizing the expense impact on our bottom line," said Riaz Bandali, president and chief executive officer of Emerald.
"The transaction also marks a renewed strategic and operational commitment for Emerald in Quebec. The sale of our position in Pure Sunfarms allowed us to revisit our strategy in this unique cannabis market. Quebec is the second-largest province in Canada. It has a consumer base that is supportive of and favourable to Quebec-based, legally licensed, high-quality cannabis producers. Our indoor, controlled-grow facility in St. Eustache, Que., and our Souvenir brand, launched last June, are well established in the province. We like the Quebec market and have established a goal to increase our efforts and results under the Souvenir brand. We also have the ability to leverage our Quebec production and location to amplify our presence and efforts in Ontario, Canada's largest cannabis market, as well as other important markets."
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 innovation, science and product excellence.
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