Emerald Health Therapeutics Announces Second Tranche of $4.5 Million Financing

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

VANCOUVER, British Columbia, Jan. 06, 2020 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF), has entered into a binding term sheet with certain institutional accredited investors (the “Investors”) under which the Investors have agreed, subject to certain customary conditions, to purchase 10,344,827 units of Emerald (each, a "Unit") at a price of $0.29 per Unit for total gross proceeds of $3,000,000 (the "Offering"). These Units will represent the remainder of the financing previously announced on December 16, 2019, however the securities to be issued under the Offering will be offered by way of a shelf prospectus supplement (the “Prospectus Supplement”) to be filed in all of the provinces of Canada pursuant to National Instrument 44-102 – Shelf Distributions and will not be subject to a hold period.

Each Unit will consist of one common share of Emerald (each, a "Common Share") and one common share purchase warrant (each, a "Warrant"). Each Warrant will entitle the Investor 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 closing of the Offering.

The Company intends to use the net proceeds of the Offering for general working capital purposes.

The closing date of the Offering is scheduled to be on or about January 13, 2020 and is subject to certain customary conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and applicable securities regulatory authorities.

Emerald has also reached an agreement with the holder of the Convertible Debentures issued on September 10, 2019 to settle accrued interest on the Convertible Debentures to December 31, 2019 in the amount of $383,562 by issuing an additional 1,322,627 Common Shares (the “Debt Shares”) at a deemed value of $0.29 per share. The Debt Shares will also be qualified under the Prospectus Supplement. Issuance of the Debt Shares is subject to approval of the TSX Venture Exchange.

This press release will not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any state in which such offer, solicitation, or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws.