Emerald Health Therapeutics’ Metro Vancouver Organic Cannabis Operation Receives Cultivation Expansion License for Total Gr...
October 15 2019 - 7:00AM
Emerald Health Therapeutics (“Emerald”) (TSXV: EMH; OTCQX: EMHTF)
has received from Health Canada its cultivation license amendment
and has full municipal permitting for its first of two 78,000
square foot greenhouses at its organic Metro Vancouver site in
British Columbia. With an additional 50,000 square feet and seven
grow areas licensed for cultivation-related activities, Emerald can
now begin commercial greenhouse production at this site. Planting
will begin immediately and is expected to be completed by the end
of Q4, with the first harvests planned for January 2020.
This second license amendment builds on the
initial site license, received in June of this year, used to
propagate premium organic plant stock for this site, as well as the
first amendment, received in July of this year, which added 12
acres of outdoor cultivation area. Emerald capitalized on the
outdoor growing season with one growing cycle for research and
development purposes and to enhance planning for the full 2020
outdoor growing season. All indoor and outdoor operations to-date
have been focused on facilitating organic certification, which,
pursuant to an initial inspection that took place in September, is
expected imminently.
“With planting starting now, the Metro Vancouver
organic operation is well positioned to be a significant
contributor to Emerald's financial results in 2020,” said Riaz
Bandali, Chief Executive Officer of Emerald. “Last week’s
announcement of our Québec premium craft product indoor cultivation
site becoming fully licensed and now receipt of our license
expansion at our organic Metro Vancouver site represent key
milestones in Emerald’s business plan. These differentiated
operating assets and their products will complement and build on
our Pure Sunfarms joint venture with its extremely competitive cost
structure and products, and they represent an additional source of
revenue, profit, and cash flow growth for Emerald.”
“Industry leading quality is the priority at
Emerald’s Metro Vancouver site, which was purposefully designed for
organic cultivation,” said Maheep Dhillon, VP Corporate
Development. “Our extensive experience in production and compliance
is a key factor that we aim to use to pioneer premium organic
products that will appeal to consumers for years to come.”
The Metro Vancouver organic site encompasses
156,000 square feet in two greenhouses as well as 12 acres
(~500,000 square feet) of licensed outdoor cultivation area. The
first outdoor cannabis crop was harvested recently and Emerald also
secured the harvest from an adjacent 12 acres of outdoor grow area.
In this outdoor initiative, the company assessed the viability of
select genetics for BC greenhouse and outdoor climates. This
genetic development program has produced several new phenotypes,
which will lead to greater differentiation in Emerald’s product
offerings.
Emerald will commission the second greenhouse at
its Metro Vancouver site as it more fully analyzes market
preferences for the diverse products from its licensed and
operational grow infrastructure at its Pure Sunfarms joint venture,
Metro Vancouver, and Verdélite. Together these three operations
position the Company to play a significant role in the growing
Canadian medical and adult use markets.
Emerald has substantially completed its capital
outlays for the Metro Vancouver site, as well as for its Quebec
Verdélite operation.
About Emerald Health Therapeutics,
Inc.
Emerald Health Therapeutics, Inc. is a Canadian
licensed producer of cannabis products focused on differentiated,
value-added product development for medical and adult-use customers
supported by novel intellectual property, large-scale cultivation,
extraction, and softgel encapsulation, as well as unique marketing
and distribution channels. Its 50%-owned Pure Sunfarms operation in
British Columbia has reached its full run-rate annual production of
approximately 75,000 kg at its first 1.1 million square foot
greenhouse operation, Delta 3. Pure Sunfarm’s second 1.1 million
square foot greenhouse, Delta 2, is planned to be in full
production by the end of 2020. Emerald’s Verdélite subsidiary is a
high-quality indoor growing and processing facility in Québec
focused on premium, craft cannabis strains. Its Metro Vancouver
organic greenhouse and outdoor operation is approved for
substantial commercial production. Emerald has contracted for
approximately 1,000 acres of hemp annually in 2019 to 2022 with the
objective of extracting low-cost CBD. The executive team is highly
experienced in life sciences, product development, large-scale
agri-business, and marketing.
Please visit www.emeraldhealth.ca for more
information or contact: Rob Hill, Chief Financial Officer (800) 757
3536 Ext. # 5
Emerald Investor Relations (800) 757 3536 Ext.
#5invest@emeraldhealth.ca
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking
Statements: Certain statements made in this press release that are
not historical facts are forward-looking statements and are subject
to important risks, uncertainties and assumptions, both general and
specific, which give rise to the possibility that actual results or
events could differ materially from our expectations expressed in
or implied by such forward-looking statements. Such statements
include obtaining required regulatory approvals; production and
processing capacity of various facilities; expansion of facilities;
obtaining additional cultivation licenses and other permits;
production at various facilities; receipt of hemp deliveries;
entering into of strategic agreements; payments of amounts owed to
and owed by Emerald; transplanting crops; obtaining final municipal
approvals; assessment of cultivation and harvesting techniques;
scale up of reliable, quality low-cost cannabis; and anticipated
production costs.
We cannot guarantee that any forward-looking
statement will materialize, and readers are cautioned not to place
undue reliance on these forward-looking statements. These
forward-looking statements involve risks and uncertainties related
to, among other things, changes of law and regulations; changes of
government; failure to obtain regulatory approvals or permits;
failure to obtain necessary financing; results of production and
sale activities; results of scientific research; regulatory
changes; changes in prices and costs of inputs; demand for labour;
demand for products; failure of counter-parties to perform
contractual obligations; as well as the risk factors described in
the Company’s annual information form and other regulatory filings.
The forward-looking statements contained in this press release
represent our expectations as of the date hereof. Forward-looking
statements are presented for the purpose of providing information
about management's current expectations and plans and allowing
investors and others to obtain a better understanding of our
anticipated operating environment. Readers are cautioned that such
information may not be appropriate for other purposes. The Company
undertakes no obligations to update or revise such statements to
reflect new circumstances or unanticipated events as they occur,
unless required by applicable law.
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