Emerald Health Therapeutics Closes Initial Tranche of Private Placement

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, British Columbia, Dec. 30, 2019 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF), announced today that it has closed the initial tranche of a private placement which was announced on December 16, 2019.

Private Placement

Emerald has closed the initial tranche (the "Initial Tranche") of its previously announced non-brokered private placement (the "Private Placement") for gross proceeds of $1,500,153. Pursuant to the closing of the Initial Tranche, Emerald issued 5,172,942 units (each, a "Unit") at an issue price of $0.29 per Unit. All Units sold pursuant to the Initial Tranche were purchased by Emerald Health Sciences Inc. ("Sciences"), a control person of Emerald, and certain directors and officers of Emerald.

Each Unit consists of one common share of Emerald (each, a "Unit Share") and one common share purchase warrant (each, a "Warrant"). Each Warrant entitles the holder thereof to acquire one common share of Emerald (each, a "Warrant Share") at a price of $0.385 per Warrant Share for a period of five years following the date hereof. In the event that the closing sale price of Emerald’s common shares (“Shares”) on the TSX Venture Exchange, or such other principal exchange on which Emerald's common shares are then trading, is greater than $0.75 per Share for a period of ten consecutive trading days at any time after the date hereof, Emerald may accelerate the expiry date of the Warrants by giving written notice to the holder thereof and in such case the Warrants will expire on the 15th day after the date on which such notice is given by Emerald.

Emerald intends to use the net proceeds of the Initial Tranche for general working capital purposes.

Secondary Offering

The previously announced sale by Sciences to a single Canadian institutional accredited investor (the “Investor”) of 5,785,119 common shares of Emerald (each, a "Secondary Share") at a price of $0.235 per Secondary Share (the "Secondary Sale") has also closed. Emerald did not receive any proceeds from the Secondary Sale. The Secondary Shares were offered by way of a shelf prospectus supplement filed in each of the provinces of Canada, in accordance with National Instrument 44-101 Short Form Prospectus Distributions and National Instrument 44-102 Shelf Distributions.