- Emerald Health Therapeutics (EMH) has signed an agreement to sell two wholly owned subsidiaries to TSXV-listed Quinto Resources
- The deal applies to Emerald Health’s Verdélite Sciences and Verdélite Property Holdings, which together own and operate an indoor cannabis production facility in St. Eustache, Québec
- Quinto intends to acquire all of the issued and outstanding shares of the subsidiaries for a total of C$21 million in cash
- The transaction constitutes a change of business for Quinto under the rules of the TSX Venture Exchange
- Emerald Health Therapeutics (EMH) is currently up 13.16 per cent and is trading at 22 cents per share
Emerald Health Therapeutics (EMH) has signed an agreement to sell two wholly owned subsidiaries to TSXV-listed Quinto Resources.
The deal applies to Emerald Health’s Verdélite Sciences and Verdélite Property Holdings, which together own and operate an 88,000 square foot indoor cannabis production facility in St. Eustache, Québec.
Verdélite Sciences became a licensed producer on January 12, 2018, and holds a standard processing license from Health Canada. Verdélite Property acquired the St. Eustache facility on February 9, 2017, and both companies were acquired by Emerald Health in early May 2018.
Cannabis cultivation activities began at the facility in late 2019, and is now in full production.
According to the terms of the agreement, Quinto will acquire all of the subsidiaries’ issued and outstanding shares for a total of C$21 million in cash. However, the purchase price remains subject to a $750,000 holdback for the working capital adjustment and as an indemnity for certain pre-existing litigation.
Riaz Bandali, CEO of Emerald Health Therapeutics, said he is proud of what the company has built in Québec, with a sophisticated growing operation and a competent team.
“However, in alignment with our strategic plan, we see benefits in consolidating our asset base and are pleased to have the opportunity to sell this facility and to see a continuing opportunity for our staff at Verdélite.
“Upon closing this transaction, the resulting capital will significantly improve our balance sheet and still leave us with a British Columbia operational base with an excellent premium growing facility in Richmond.” he added.
The transaction constitutes a change of business for Quinto under the rules of the TSX Venture Exchange, and is expected to be completed by August 31, 2020.
Emerald Health Therapeutics (EMH) is up 13.16 per cent and is trading at 22 cents per share at 1:12pm EDT.