Emerald Health Therapeutics’ Joint Venture Partner Withdraws Purported $5.94 Million Investment in Pure Sunfarms

Emerald continues to hold 50% of Pure Sunfarms

VANCOUVER, British Columbia, Jan. 17, 2020 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF) today announced that Village Farms International, Inc. ("Village Farms") has withdrawn its attempt to make an unsupported  additional equity contribution in their joint venture, Pure Sun Farms Corp. (“PSF”). Village Farms has rescinded the attempt and has requested and received a refund of the $5.94 million it advanced to PSF in November 2019.

The previously announced arbitration proceedings between the parties remain in process with respect to Emerald’s right to set-off a $5.94 million payment owed by Emerald to PSF against a portion of the more than $13 million currently owed by PSF to Emerald under its shareholder loan. A final decision on the arbitration is expected in summer 2020. Emerald continues to own 50% of the outstanding shares of PSF.

“We are pleased that this issue has been resolved in Emerald’s favour and we will rely on the ongoing arbitration process to resolve the remaining issues,’’ said Riaz Bandali, President and CEO of Emerald.

Payments to Pure Sunfarms

On December 13, 2019, Emerald advanced $940,000 to PSF as part of its agreement to pay an aggregate of $25.0 million in connection with the exercise of the joint venture's acquisition of the Delta 2 greenhouse. It also advanced its required final payment of $710,000 on January 15, 2020. No further amounts are payable by Emerald under the D2 option agreement.

About Emerald Health Therapeutics

Emerald Health Therapeutics, Inc. is committed to creating new consumer experiences with recreational and wellness-oriented cannabis products. With an emphasis on innovation and production excellence, Emerald has built a platform of distinct operating assets designed to uniquely serve the Canadian marketplace and international opportunities. Its 50%-owned PSF operation in British Columbia, with high quality, affordably priced products, is in full production at its first 1.1 million square foot greenhouse operation, Delta 3. PSF’s second 1.1 million square foot greenhouse, Delta 2, is currently being retrofitted for the cultivation of cannabis. Emerald’s Verdélite premium craft operation is fully licensed and in full production in its 88,000 square foot indoor facility in Québec. Its Metro Vancouver health and wellness-oriented organic greenhouse and outdoor operation has completed planting in the first of two 78,000 square foot buildings. Its Emerald Naturals joint venture is creating a completely new wellness product category with its non-cannabis endocannabinoid-supporting product line and is expanding distribution across Canada.