Emerald Health Therapeutics Announces Internal Reorganization
October 30 2019 - 7:00AM
Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX:
EMHTF) has announced an internal reorganization including the
reduction of its workforce and other expenditures. It is at the
same time reinforcing its commitment to new product development
focused on enhancing the modulation of the body’s endocannabinoid
system. These changes are focused on improving cash flow in the
near term and the goal of building long term profitability.
“Although such decisions are difficult, we will
evolve our strategy, structure, and capabilities as necessary to be
able to capitalize on key trends in the changing cannabis sector,”
said Dr. Avtar Dhillon, Executive Chairman of the Board and
President of Emerald.
As part of the reorganization, Emerald
eliminated approximately 20 staff positions yesterday and has
reduced its workforce by approximately 65 staff positions, or 33%
of its total workforce, since August 1, 2019. The reductions
include the departure of Mr. Rob Hill, CFO, and Mr. Sean Rathbone,
COO. Ms. Jenn Hepburn, previously Director, Finance, has been
appointed Chief Financial Officer and Corporate Secretary,
effective immediately. Dr. Avtar Dhillon, currently President and
Chairman of Emerald, will cease to be President and will continue
as Executive Chairman. Mr. Riaz Bandali, CEO of Emerald, will
continue as President and CEO.
The reorganization is not expected to impact
Emerald’s cannabis production or its client service. Management
expects that the reorganization will enable Emerald to realize
material cost savings beginning in the first quarter of 2020.
Emerald remains committed to investing in its innovation and new
product development activities.
“These actions and the ongoing adjustment and
maturing of our strategy are important to Emerald’s development,
growth, and enhancing the value of our business. Apart from
streamlining our cost structure, we are aiming to position each
element of our business to effectively serve a diverse set of
consumer needs in the cannabis market in a complimentary manner and
focusing each operation on independently growing cash flow,” said
Riaz Bandali, CEO of Emerald.
“For example, since legalization, the largest
volume of sales in the recreational cannabis marketplace has been
for value-oriented products and our most advanced and largest
operating asset, our 50%-owned Pure Sunfarms joint venture, is
serving this segment of the market. Our two wholly-owned organic
and craft operations are now increasing cultivation toward full
production to serve the premium part of the market and we look
forward to revenue from these independent and complementary
facilities beginning in the first quarter. Our natural health
product initiative, with its endocannabinoid-modulating
capabilities using non-cannabis products, is expanding distribution
of its unique wellness-oriented products. Finally, we are
continuing with our new product development efforts aimed at
combining scientific understanding and innovation with targeted
opportunities in the marketplace.”
About Emerald Health
Therapeutics
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, with value-oriented products, is in full
production at its first 1.1 million square foot greenhouse
operation, Delta 3. Pure Sunfarms’ second 1.1 million square foot
greenhouse, Delta 2, is planned to be in full production by the end
of 2020. Emerald’s Verdélite 88,000 square foot indoor production
facility in Québec is fully-licensed and increasing cultivation of
premium, craft cannabis strains. Its Metro Vancouver high-quality
organic greenhouse and outdoor operation is expanding production in
the first of two 78,000 square foot buildings. Its Emerald Health
Naturals joint venture is broadening distribution of its
non-cannabis endocannabinoid-supporting product line across Canada.
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: Jenn Hepburn, 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: financial performance; product development; ability to
react to trends in the sector; Emerald's strategic position in the
cannabis and non-cannabis market; obtaining required regulatory
approvals; production and processing capacity of various
facilities; expansion of facilities; receipt of hemp deliveries;;
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
Emerald’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. Emerald
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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