VICTORIA, British Columbia, Oct. 26, 2017 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics Inc. (“Emerald”) (TSXV:EMH) (OTCQX:EMHTF) announced today that it has signed a definitive agreement (the “Agreement”) with Northern Vine Canada Inc. (“Northern Vine”) and Abattis Bioceuticals Corp. (“Abattis”) (CSE:ATT) (OTC:ATTBF) to invest $2.5 million into Northern Vine to acquire 53% of the company and appoint three of its four directors. Abattis will continue to hold the remaining 47% of Northern Vine.
Northern Vine is a Licensed Dealer (“LD”) under the provisions of the Canadian Controlled Drugs and Substances Act, which permits Northern Vine to carry out a much broader range of cannabis research and development and pursue international business opportunities that Emerald is not permitted to undertake under Emerald’s Licensed Producer (“LP”) designation under the Access to Cannabis for Medical Purpose Regulations (“ACMPR”).
Of notable importance, Northern Vine’s LD status allows it to not only export/import cannabis, as LPs are permitted to do under ACMPR, but to also export/import cannabis oils.
The acquisition of Northern Vine significantly expands Emerald’s ability to carry out research and development, through Northern Vine, as Northern Vine is not limited by ACMPR restrictions and is authorized to prepare any manipulation, formulation, dosage form, strength or package size of cannabis which can be mixed with additives and other controlled drugs.
Additionally, Northern Vine further provides Emerald with immediate exposure to another strategic opportunity in the current medical and anticipated legal recreational cannabis markets in Canada: analytical testing. Northern Vine currently offers LPs and patients registered under the ACMPR complete microbiology and chemical analyses, with testing of product potency as well as testing for the presence of unwanted pesticides, microbes, and environmental toxins in dried plant products, extracts, derivatives and edibles. Northern Vine has agreed to carry out analytics on Emerald’s cannabis on a Preferred Customer basis following closing of the proposed transaction.
“Our vision for product innovation is one of the pillars of Emerald’s business strategy that will be materially enabled by our acquisition of control of a Licensed Dealer,” said Chris Wagner, Chief Executive Officer of EHT. “The broad set of permitted activities provided to Northern Vine, as a Licensed Dealer, will provide Emerald with tremendous latitude to advance its product development and clinical plans as it develops its cannabis formulations for the treatment of human disease.”
“A Licensed Dealer has a significantly broader license than a Licensed Producer to carry out research and development and to import and export cannabis oils and other controlled substances,” said Avtar Dhillon, MD, Executive Chairman of Emerald. “Our acquisition of control of Northern Vine will set the wheels in motion on a number of strategic business opportunities we have been nurturing.”
Closing of the proposed transaction, which is subject to receipt of all necessary regulatory approvals and certain other conditions customary in transactions of this nature as set forth in the Agreement, is expected to occur within the next three weeks.
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About Abattis Bioceuticals Corp.
Abattis is a life sciences and biotechnology company which aggregates, integrates, and invests in cannabis technologies and biotechnology services for the legal cannabis industry developing in Canada. Abattis has successfully developed and licensed natural health products, medicines, extractions, and ingredients for the biologics, nutraceutical, bioceutical, and cosmetic markets. Abattis is also seeking to acquire exclusive intellectual property rights to agricultural technologies to be employed in extraction and processing of botanical ingredients and compounds. Abattis follows strict standard operating protocols, and adheres to the applicable laws of Canada and foreign jurisdictions.
About Emerald Health Therapeutics Inc.
Emerald Health Therapeutics, Inc. (TSXV:EMH) (OTCQX:EMHTF) operates through Emerald Health Botanicals Inc. ("Botanicals"), a wholly owned subsidiary and Licensed Producer under the Access to Cannabis for Medical Purposes Regulations. Botanicals is authorized to produce and sell both dried medical cannabis flower and medical cannabis oil in Canada. Botanicals currently operates an indoor facility in Victoria, BC, and is progressing on expansion plans for a 32-acre property in Metro Vancouver and a partnership with Village Farms, called Pure Sunfarms, utilizing a 25-acre existing greenhouse complex in Delta, BC. Botanicals is one of Canada's most medically focused licensed producers, with a team highly experienced in life sciences product development and large-scale agribusiness. Its vision is to be a leading provider of cannabis products through its production capabilities, proprietary genetics, value-added products and branding, and superb customer experience. Emerald Health Therapeutics is associated with the Emerald Health group, which comprises multiple companies advancing diverse botanical, nutraceutical and pharmaceutical products that may provide wellness and medical benefits by interacting with the body’s endocannabinoid system.
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Cautionary Statements Regarding Forward Looking Information
Certain statements in this press release constitute forward-looking statements, within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, are "forward-looking statements".
We caution you that such "forward-looking statements" involve known and unknown risks and uncertainties that could cause actual and future events to differ materially from those anticipated in such statements.
Forward-looking statements include, but are not limited to, statements with respect to closing of the proposed transaction; expansion of Emerald’s business; creation of strategic development opportunities; commercial operations; construction or conversion of production facilities; international opportunities for the Company; the Company becoming a leading Canadian supplier of cannabis products; expected timing of any of the above matters; and other information that is based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.
Emerald Health Therapeutics Inc. does not intend, and does not assume any obligation, to update these forward-looking statements except as required by law. These forward-looking statements involve risks and uncertainties relating to, among other things, failure to obtain regulatory approval for closing of the proposed transaction or to meet the conditions set out in the Agreement; failure of the federal government to approve legislation legalizing sales of non-therapeutic adult-use cannabis; failure to obtain Health Canada and other regulatory approvals; failure to obtain necessary financing; results of production and sale activities; the Company's historical experience with medical marijuana operations; results of scientific research; uninsured risks; regulatory changes; difficulties in construction or in obtaining qualified contractors to complete construction or conversion of facilities; availability of production facilities; timeliness of government approvals and the granting of permits and licenses; changes in prices and costs; actual operating and financial performance of facilities; equipment and processes relative to specifications and expectations; as well as the other risk factors set out in the Company’s annual information form and other filings with the applicable Canadian securities regulators, which may be viewed at www.sedar.com. Actual results may differ materially from those expressed or implied by such forward-looking statements.
Source:Emerald Health Therapeutics Inc.