Vancouver, British Columbia--(Newsfile Corp. - January 11, 2022) - Emerald Health Therapeutics, Inc. (CSE: EMH) (OTCQX: EMHTF) ("Emerald") has entered into a binding term sheet to sell to FlowerPod LLC all patents and related intellectual property pertaining to Emerald's vaporizer cannabis puck concept in exchange for US$1 million in cash and a US$500,000 one-year interest-bearing secured promissory note. As part of the transaction, Emerald will transfer its ownership interest back to FlowerPod LLC but will retain its US$350,000 two-year interest-bearing promissory note it received from FlowerPod LLC on May 5, 2021. The transaction is scheduled to close in late Q1 2022.
In addition, Emerald and HYTN Cannabis Inc. have agreed to unwind their strategic alliance, initially announced on November 3, 2021, in an orderly and co-operative manner. Emerald has also taken steps to materially reduce its burn rate.
"As I mentioned at our AGM on December 30, 2021, since announcing on November 29, 2021, that Emerald was pivoting out of the cannabis industry and into pharmaceutical development, I have been very pleased with Emerald's progress on negotiations to sell its cannabis industry assets for cash," said Jim Heppell, Chair of Emerald's Board. "The Board and management are looking forward to our meeting with Vantage Point later this week, where we will be focusing on prioritizing their shortlist of merger/acquisition candidates involved in pharmaceutical development."
Please visit www.emeraldhealth.ca for more information or contact:
Moe Jiwan, Chief Operating Officer
1(800) 757 3536 Ext. #5
Emerald Investor Relations
(800) 757 3536 Ext. #5
invest@emeraldhealth.ca
Neither the Canadian Securities Exchange nor the Market Regulator (as that term is defined in the policies of the Canadian Securities 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: the ability to identify and negotiate a suitable merger/acquisition; the future performance of a new business enterprise.
We cannot guarantee that any forward-looking statement will materialize, and readers are cautioned not to place undue reliance on these forward-looking statements. Such statements include uncertainty as a result of COVID-19 including any continued impact on production or operations; receipt of amounts owing to Emerald; as well as the risk factors described in Emerald's annual information form and other regulatory filings. These statements are not historical facts but instead represent management beliefs regarding future events, many of which, by their nature are inherently uncertain and beyond management control.
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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