Emerald Health Therapeutics Closes $2.2 Million Prospectus Sale

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

VANCOUVER, British Columbia, Feb. 06, 2020 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF) has closed the first tranche of its $3,000,000 prospectus offering (the “Offering”) announced in its news release dated January 6, 2020.

Pursuant to this initial closing, Emerald has issued an aggregate of 7,596,551 units of Emerald (each, a "Unit") at a price of $0.29 per unit for total gross proceeds of $2,203,000. Emerald will issue the remaining 2,748,276 Units, for gross proceeds of $797,000, upon receipt of all necessary approvals, including the approval of the TSX Venture Exchange and applicable securities regulatory authorities.

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

The Company intends to use the net proceeds of the Offering for general working capital purposes, including the payment of salaries, lease obligations and inventory purchases.

Emerald has also settled interest accrued to December 31, 2019 on its previously issued convertible debentures 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 Debt Share.

The Units and the Debt Shares were distributed pursuant to a shelf prospectus supplement filed in all of the provinces of Canada pursuant to National Instrument 44-102 – Shelf Distributions.

As disclosed in Emerald's news release dated January 31, 2020, Emerald settled $2,022,781 (the "Debt") in outstanding debt on January 31, 2020, in exchange for the issuance of shares of Emerald. Emerald wishes to clarify that the Debt represented amounts owed by Emerald to a related party under a previously disclosed hemp supply agreement pursuant to which Emerald received approximately 135,000 kg of product.

Emerald also announces that Thierry Schmidt has is no longer the Chief Commercialization Officer of Emerald. We thank Thierry for his efforts with Emerald.

In addition, Emerald announces that it has today issued an aggregate of 4,250,000 stock options to employees, consultants and directors at an exercise price of $0.29 per common share for a period of five years. All stock options will vest 25% on the date of grant and 25% on the first three anniversaries of the date of grant. Emerald has also granted an aggregate of 375,000 restricted share units to certain directors and employees. The restricted share units will vest one year from the grant date and convert into common shares of Emerald at a fair market value of $0.29 per common share. The stock options and restricted share units have been granted pursuant to Emerald's Omnibus Incentive Plan which has been previously approved by Emerald's shareholders and the TSX Venture Exchange.