Emerald Health Therapeutics has entered into a binding term sheet with certain institutional accredited investors under which the Investors have agreed, subject to certain customary conditions, to purchase 10,344,827 units of Emerald at a price of $0.29 per Unit for total gross proceeds of $3,000,000. "These Units will represent the remainder of the financing previously announced on December 16, 2019, however the securities to be issued under the Offering will be offered by way of a shelf prospectus supplement to be filed in all of the provinces of Canada pursuant to National Instrument 44-102 – Shelf Distributions and will not be subject to a hold period," the team with the company explains.
"Each Unit will consist of one common share of Emerald and one common share purchase warrant. Each Warrant will entitle the Investor to acquire one common share of Emerald at a price of $0.385 per Warrant Share for a period of five years following the closing of the Offering."
"The Company intends to use the net proceeds of the Offering for general working capital purposes," they further explain.
The closing date of the Offering is scheduled to be on or about January 13, 2020 and is subject to certain customary conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and applicable securities regulatory authorities.
Emerald has also reached an agreement with the holder of the Convertible Debentures issued on September 10, 2019 to settle accrued interest on the Convertible Debentures to December 31, 2019 in the amount of $383,562 by issuing an additional 1,322,627 Common Shares at a deemed value of $0.29 per share. "The Debt Shares will also be qualified under the Prospectus Supplement. Issuance of the Debt Shares is subject to approval of the TSX Venture Exchange," they conclude.
For more information:
Emerald Health Therapeutics
emeraldhealth.ca