Emerald Overall health Therapeutics Closes Convertible Debenture Unit Financing

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VANCOUVER, British Columbia – Emerald Overall health 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 Business issued two,500 secured convertible debenture units (every single, a “Convertible Debenture Unit”) at a cost of $10,000 per Convertible Debenture Unit (the “Issue Price”) for gross proceeds of $25,000,000.

Every Convertible Debenture Unit is comprised of a single five.% secured convertible debenture of the Business in the principal quantity of $10,000 (every single, a “Convertible Debenture”) and five,000 prevalent share purchases warrants of the Business (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 selection of the Business payable in money or, pursuant to TSXV guidelines and topic to specific limitations on a holder’s ownership levels, in prevalent shares of the Business (“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 organization of the Business.

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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 selection of the holder, into Popular Shares at any time prior to the close of organization on the final organization day instantly preceding the Maturity Date. The Convertible Debentures have a conversion cost of $two.00 per Popular Share (the “Conversion Price”). If, at any time prior to the Maturity Date, the volume weighted typical trading cost of the Popular Shares on the TSX Venture Exchange (the “TSXV”) is higher than $three.50 for 10 consecutive trading days, the Business could force the conversion of the principal quantity of the then outstanding principal quantity owing pursuant to the Convertible Debentures at the Conversion Value supplied the Business 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 acquire a single Popular Share at an physical exercise cost 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 cost of the Popular Shares on the TSXV is higher than $three.50 for 10 consecutive trading days, the Business 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 Business has utilised a portion of the net proceeds of the Supplying to repay the outstanding loan to Emerald Overall health Sciences Inc. and intends to use the remainder for operating capital.

The Convertible Debenture Units had been provided 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 Kind Prospectus Distributions and National Instrument 44-102 Shelf Distributions.

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


About Emerald Overall health Therapeutics
Emerald Overall health Therapeutics, Inc. is a Canadian licensed producer of cannabis. Its 50%-owned Pure Sunfarms joint venture in BC is licensed and totally 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 construct-out of its 88,000 square foot indoor cultivation facility and is scaling up production. Emerald has contracted for around 1,200 acres of hemp in 2019 to 2022 with the objective of extracting low-expense cannabidiol. Emerald has secured exclusive strategic partnerships for substantial scale extraction and softgel encapsulation, as nicely as for proprietary technologies to improve cannabinoid bioavailability. Its group is extremely knowledgeable in life sciences, item improvement, substantial-scale agri-organization, and marketing and advertising, and is focused on creating proprietary, worth-added cannabis goods for health-related and adult-use prospects.

Emerald is component of the Emerald Overall health Group which represents a broad array of organizations focused on creating pharmaceutical, botanical, and nutraceutical goods aimed at offering wellness and health-related positive aspects by interacting with the human body’s endocannabinoid method.



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