Total
0
Shares
Emerald Health Therapeutics Inc - CEO, Riaz Bandali - The Market Herald Canada
CEO, Riaz Bandali
Source: Emerald Health Sciences
  • Emerald Health Therapeutics (EMH) has signed an agreement to sell two wholly owned subsidiaries to TSXV-listed Quinto Resources
  • The deal applies to Emerald Health's Verdélite Sciences and Verdélite Property Holdings, which together own and operate an indoor cannabis production facility in St. Eustache, Québec
  • Quinto intends to acquire all of the issued and outstanding shares of the subsidiaries for a total of C$21 million in cash
  • The transaction constitutes a change of business for Quinto under the rules of the TSX Venture Exchange
  • Emerald Health Therapeutics (EMH) is currently up 13.16 per cent and is trading at 22 cents per share

Emerald Health Therapeutics (EMH) has signed an agreement to sell two wholly owned subsidiaries to TSXV-listed Quinto Resources.

The deal applies to Emerald Health's Verdélite Sciences and Verdélite Property Holdings, which together own and operate an 88,000 square foot indoor cannabis production facility in St. Eustache, Québec.

Verdélite Sciences became a licensed producer on January 12, 2018, and holds a standard processing license from Health Canada. Verdélite Property acquired the St. Eustache facility on February 9, 2017, and both companies were acquired by Emerald Health in early May 2018.

Cannabis cultivation activities began at the facility in late 2019, and is now in full production.

According to the terms of the agreement, Quinto will acquire all of the subsidiaries' issued and outstanding shares for a total of C$21 million in cash. However, the purchase price remains subject to a $750,000 holdback for the working capital adjustment and as an indemnity for certain pre-existing litigation.

Riaz Bandali, CEO of Emerald Health Therapeutics, said he is proud of what the company has built in Québec, with a sophisticated growing operation and a competent team.

"However, in alignment with our strategic plan, we see benefits in consolidating our asset base and are pleased to have the opportunity to sell this facility and to see a continuing opportunity for our staff at Verdélite.

"Upon closing this transaction, the resulting capital will significantly improve our balance sheet and still leave us with a British Columbia operational base with an excellent premium growing facility in Richmond." he added.

The transaction constitutes a change of business for Quinto under the rules of the TSX Venture Exchange, and is expected to be completed by August 31, 2020.

Emerald Health Therapeutics (EMH) is up 13.16 per cent and is trading at 22 cents per share at 1:12pm EDT.


Subscribe


More From The Market Herald
SLANG Worldwide Inc - CEO, Chris Driessen - The Market Herald Canada

" SLANG Worldwide (CSE:SLNG) debuts on the OTCQB

Cannabis packaging company SLANG Worldwide (SLNG) has commenced trading on the OTCQB, hoping to expand its trading presence in the US.
Radient Technologies Inc. - President & CEO Denis Taschuk - The Market Herald Canada

" Radient Technologies (TSXV:RTI) marks milestone shipment

Cannabis company, Radient Technologies (RTI) has successfully completed its first shipment of products to the BC Liquor Distribution Branch.
Maple Leaf Green World secures $14M sales agreement

" TransCanna (CSE:TCAN) subsidiary opens first bank accounts

TransCanna Holdings (TCAN) subsidiary, Lyfted Farms, has opened two banking accounts with a California-based credit union.
The Flowr Corporation - CEO, Vinay Tolia - The Market Herald Canada

" The Flowr Corporation (TSXV:FLWR) closes fourth funding tranche

The Flowr Corporation (FLWR) has closed the fourth tranche of funding under its ongoing agreement with Terrace Global (TRCE).