Emerald Health Therapeutics (TSXV: EMH) is leaving Quebec. The company announced this morning that it is selling its Quebec-based subsidiaries Verdelite Sciences, Inc, as well as Verdelite Property Holdings, Inc in an all cash transaction to that of Quinto Resources (TSXV: QIT).
Under the terms of the transaction, Quinto will purchase the Quebec cannabis assets from Emerald Health for total consideration of $21.0 million, to be paid in cash. A $0.75 million holdback will be applied however for working capital adjustments and for “certain pre-existing litigation.”
Closing of the transaction is set to occur on or before August 31, 2020. Quinto, a public issuer whom will be required to conduct a “change of business,” and expects to finance the transaction via private placements and bridge financing.
Emerald Health has wholly-owned the license producer since May 1, 2018. Now, the company will retain only BC-based assets, including its Richmond facility, its Victoria facility, and its 41.3% stake in Pure Sunfarms, located in Delta, BC.
Emerald will still maintain the ability to sell into the Quebec market subject to certain restrictions.
Emerald Health Therapeutics last traded at $0.19 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.