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.
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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.
