Emerald Health Therapeutics Signs LOI with Sigma Analytical Services
09 March 2020 - 10:05PM
Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX:
EMHTF) (“Emerald”) has signed a letter of intent under which Sigma
Analytical Services Inc. (“Sigma”), a full-service GMP-compliant
testing laboratory for cannabis, hemp, and derived products, may
acquire Emerald’s Avalite cannabis analytical testing operation.
The companies also intend to establish a preferred partner
relationship. Terms of the deal have been agreed to in principle
and will be announced upon completion. Execution of definitive
agreements is subject to due diligence and board approval of both
companies and is expected to occur on or before April 19, 2020.
Completion of the transaction will be subject to a number of
conditions including settlement of final documentation and receipt
of applicable regulatory and third-party approvals.
“We are very pleased to expand our testing
services in Western Canada. We see many benefits in being
physically close to our clients (licensed producers and processors)
and building true partnerships with them to enhance the quality of
products. This is the main reason why we also started expanding to
Colombia in 2019,” said Dr. Kaveh Kahen, President and CEO of
Sigma. “We believe having a complete analytical and microbiology
testing lab for cannabis in BC would give us the opportunity to
establish similar partnerships with the thriving craft cannabis
sector, as well as large producers, in British Columbia and
Alberta.”
Riaz Bandali, President and Chief Executive
Officer of Emerald, said, "We believe the analytical marketplace
has excellent growth dynamics based on the positive global trend to
legalize cannabis. However, it is necessary to have a critical mass
of scientific expertise and scale. In our view, the best growth
opportunity for our Avalite operation is to integrate it with a
dedicated analytical services company. We are very pleased with the
opportunity to move forward with a constructive relationship with
Sigma and its group of experts in this segment.”
About Sigma Analytical Services
Sigma Analytical Services Inc., headquartered in
Toronto, Canada, is a full-service GMP-certified analytical and
microbiological testing laboratory, offering comprehensive
analytical services, method development and validation, and
consulting, in cannabis and cannabis derived products. Sigma has
operations and partnerships in North America and South America.
Sigma continues to offer accurate testing services in the legal
cannabis sector, while committing to advancing the understanding of
cannabis science and establishing a global scientific network. As
more countries legalize cannabis for medical and recreational
purposes, this facilitation of research, knowledge sharing, and
reliable testing, creates an invaluable addition in safety and
quality.
About Emerald Health
Therapeutics
Emerald Health Therapeutics, Inc. is committed
to creating new consumer experiences with recreational and
wellness-oriented cannabis products. With an emphasis on innovation
and production excellence, Emerald has built a platform of distinct
operating assets designed to uniquely serve the Canadian
marketplace and international opportunities. These assets, all in
full production, include: Pure Sunfarms, its joint venture in
British Columbia, with its 1.1 million square foot Delta 3
greenhouse operation producing high quality, affordably priced
products; Verdélite, a premium craft operation with an 88,000
square foot indoor facility in Québec; and Metro Vancouver, a
health and wellness-oriented organic greenhouse (78,000 square
feet) and outdoor operation. Its Emerald Naturals joint venture is
creating a new wellness product category with its non-cannabis
endocannabinoid-supporting product line and is expanding
distribution across Canada.
Please visit www.emeraldhealth.ca for more information or
contact:
Jenn Hepburn, Chief Financial Officer (800) 757 3536 Ext. #5
Emerald Investor Relations (800) 757 3536 Ext.
#5invest@emeraldhealth.ca
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking
Statements: Certain statements made in this press release that are
not historical facts are forward-looking statements and are subject
to important risks, uncertainties and assumptions, both general and
specific, which give rise to the possibility that actual results or
events could differ materially from our expectations expressed in
or implied by such forward-looking statements. Such statements
include: execution of definitive agreements; completion of the
proposed transaction; growth in the analytical marketplace;
production and processing capacity of various facilities; expansion
of facilities; and expansion of distribution of
endocannabinoid-supporting products.
We cannot guarantee that any forward-looking
statement will materialize, and readers are cautioned not to place
undue reliance on these forward-looking statements. These
forward-looking statements involve risks and uncertainties related
to, among other things, results of due diligence; failure to obtain
board approval; failure to obtain regulatory or third party
approval; changes of law and regulations; changes of government;
failure to obtain regulatory approvals or permits; failure to
obtain necessary financing; results of production and sale
activities; results of scientific research; regulatory changes;
changes in prices and costs of inputs; demand for labour; demand
for products; failure of counter-parties to perform contractual
obligations; as well as the risk factors described in Emerald’s
annual information form and other regulatory filings. The
forward-looking statements contained in this press release
represent our expectations as of the date hereof. Forward-looking
statements are presented for the purpose of providing information
about management's current expectations and plans and allowing
investors and others to obtain a better understanding of our
anticipated operating environment. Readers are cautioned that such
information may not be appropriate for other purposes. Emerald
undertakes no obligations to update or revise such statements to
reflect new circumstances or unanticipated events as they occur,
unless required by applicable law.
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