Emerald Health Announces Another Financing Below Market Rates, Dilutes Sciences Ownership

Emerald Health Therapeutics (TSXV: EMH) is raising money less than a month after it closed its previous financing. This time however, the price per unit is almost half of what it was just mere weeks ago. The issuer this morning announced its intent to raise anywhere from $1.5 to $4.5 million in the latest financing announced by the firm.

The raise will see units sold at a price of $0.29 each, which contains a common share as well as a full warrant. Each warrant will have an exercise price of $0.385 (which is actually a half penny above the last trading price of the equity prior to financing announcement) and be valid for an incredible period of five years from the date of issuance, demonstrating just how bad of a financial position Emerald has found itself in. The warrants have an acceleration clause however, with the company able to accelerate the expiry if the equity maintains a volume weighted average price of $0.75 for a period of ten days.

Interestingly, the firm is diluting its ownership of Emerald Health Sciences to get the raise completed. Sciences, along with certain directors and officers, as well as a control person of the company have agreed to commit at least $1.5 million for the current raise. Of this, $1,359,502 will be committed to by Emerald Health Sciences. Within the same news release, Emerald also announced a secondary offering, whereby a single investor will invest – you guessed it – $1,359,502 in Emerald Health Sciences to increase their stake in the firm.

Finally, as a means of improving its balance sheet, Emerald Health Sciences has agreed to allow the issuer to settle $3.0 million in debt owed to the partially owned subsidiary. As a result, Emerald Health Therapeutics will issue Sciences 10,389,611 common shares of its equity at a price of $0.29 per share. The end result is that the partially owned subsidiary will actually own 23.4% of the public issuer in an absolute mess of a business structure.

Emerald Health Therapeutics last traded at $0.38 on the TSX Venture.


Information for this briefing was found via Sedar and Emerald Health Therapeutics. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Gold is Up 30%, But the Real Bull Market is Only Starting Now! | Adrian Day

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

Village Farms Requests $5.94 Million Refund From Pure Sunfarms

It appears that Village Farms (TSX: VFF) (NASDAQ: VFF) is taking a step back from...

Thursday, January 16, 2020, 05:35:29 PM

Emerald Health Reduces Workforce 33%, Replaces CFO

Emerald Health Therapeutics (TSXV: EMH) made it known to the public this morning that it...

Wednesday, October 30, 2019, 10:42:23 AM

Emerald Health Disputes $7 Million Tab at Village Farms Joint Venture

Both Emerald Health Therapeutics (TSXV: EMH) and Village Farms International (TSX: VFF) (NASDAQ: VFF) announced...

Tuesday, October 15, 2019, 08:58:01 AM

Emerald Health Disputes Village Farms Again, But Do They Have Grounds To?

Surprising absolutely no one, this morning Emerald Health Therapeutics (TSXV: EMH) responded to Village Farms...

Wednesday, November 27, 2019, 09:05:03 AM

Emerald Health Therapeutics To Begin Trading On CSE April 27

Emerald Health Therapeutics (TSXV: EMH) has finalized the date on which it is to delist...

Friday, April 23, 2021, 08:55:51 AM