Emerald Well being Therapeutics Closes Convertible Debenture Unit Financing

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VANCOUVER, British Columbia – Emerald Well being Therapeutics, Inc. (“Emerald” or the “Company”) (TSXV: EMH OTCQX: EMHTF) announces that it has closed its prospectus supplying (the “Offering”) to specific Canadian institutional accredited investors announced on August 28, 2019. Pursuant to the Supplying, the Organization issued two,500 secured convertible debenture units (every single, a “Convertible Debenture Unit”) at a value of $10,000 per Convertible Debenture Unit (the “Issue Price”) for gross proceeds of $25,000,000.

Every single Convertible Debenture Unit is comprised of 1 five.% secured convertible debenture of the Organization in the principal quantity of $10,000 (every single, a “Convertible Debenture”) and five,000 prevalent share purchases warrants of the Organization (every single, a “Warrant”). The Convertible Debentures have a maturity date of 24 months from the date hereof (the “Maturity Date”) and bear interest (at the choice of the Organization payable in money or, pursuant to TSXV guidelines and topic to specific limitations on a holder’s ownership levels, in prevalent shares of the Organization (“Common Shares”)) from the date hereof at five.% per annum, accrued and payable semi-annually on June 30th and December 31st of every single year. The Convertible Debentures include things like specific covenants relating to the company of the Organization.

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Topic to specific limitations on a holder’s ownership levels, the Convertible Debentures are convertible, topic to specific restrictions and at the choice of the holder, into Frequent Shares at any time prior to the close of company on the final company day straight away preceding the Maturity Date. The Convertible Debentures have a conversion value of $two.00 per Frequent Share (the “Conversion Price”). If, at any time prior to the Maturity Date, the volume weighted typical trading value of the Frequent Shares on the TSX Venture Exchange (the “TSXV”) is higher than $three.50 for 10 consecutive trading days, the Organization could force the conversion of the principal quantity of the then outstanding principal quantity owing pursuant to the Convertible Debentures at the Conversion Cost offered the Organization offers 30 days’ notice of such conversion to the holder.

Topic to specific limitations on a holder’s ownership levels, every single Warrant is exercisable to obtain 1 Frequent Share at an physical exercise value of $two.00 per share for a period of 24 months from the date hereof. If, at any time prior to the expiry date of the Warrants, the volume weighted typical trading value of the Frequent Shares on the TSXV is higher than $three.50 for 10 consecutive trading days, the Organization could provide a notice to the holder of Warrants accelerating the expiry date of the Warrants to the date that is 30 days following the date of such notice.

The Organization has utilised a portion of the net proceeds of the Supplying to repay the outstanding loan to Emerald Well being Sciences Inc. and intends to use the remainder for functioning capital.

The Convertible Debenture Units had been supplied by way of a shelf prospectus supplement dated August 30, 2019 filed in all of the provinces of Canada pursuant to National Instrument 44-101 Quick Type Prospectus Distributions and National Instrument 44-102 Shelf Distributions.

This press release will not constitute an present to sell or the solicitation of an present to acquire nor will there be any sale of the securities in any state in which such present, solicitation or sale would be unlawful. The securities getting supplied have not been, nor will they be, registered beneath the United States Securities Act of 1933, as amended, and could not be supplied or sold in the United States absent registration or an applicable exemption from the registration needs of the United States Securities Act of 1933, as amended, and applicable state securities laws.


About Emerald Well being Therapeutics
Emerald Well being Therapeutics, Inc. is a Canadian licensed producer of cannabis. Its 50%-owned Pure Sunfarms joint venture in BC is licensed and completely planted in the 1st of its two 1.1 million square foot greenhouses. The capacity of every single greenhouse is estimated to exceed 75,000 kg of cannabis annually. Emerald’s Verdélite operation in Québec is finishing the develop-out of its 88,000 square foot indoor cultivation facility and is scaling up production. Emerald has contracted for roughly 1,200 acres of hemp in 2019 to 2022 with the objective of extracting low-expense cannabidiol. Emerald has secured exclusive strategic partnerships for big scale extraction and softgel encapsulation, as nicely as for proprietary technologies to boost cannabinoid bioavailability. Its group is very skilled in life sciences, item improvement, big-scale agri-company, and advertising, and is focused on creating proprietary, worth-added cannabis solutions for healthcare and adult-use prospects.

Emerald is component of the Emerald Well being Group which represents a broad array of firms focused on creating pharmaceutical, botanical, and nutraceutical solutions aimed at giving wellness and healthcare added benefits by interacting with the human body’s endocannabinoid technique.



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