Vancouver, British Columbia – (Newsfile Corp. – Nov. 29, 2021) – Emerald Health Therapeutics, Inc. (CSE: EMH) (OTCQX: EMHTF) (“Emerald” or the “Company”) announced an early stage today – and medical cannabis business and alignment with a pharmaceutical development focus. Emerald intends to seek buyers for its recreational and medicinal cannabis assets to further strengthen its already strong capital position and plans to make significant cost cuts to reduce its net monthly consumption. Emerald intends to maximize its liquidity position and seek business opportunities in pharmaceutical development, where the Emerald Board of Directors has significant expertise. Such acquisitions or sales require the approval of the supervisory authorities and may require the approval of the shareholders.
The company has agreed to hire Vantage Point Advisors to help identify potential acquisition / merger candidates involved in pharmaceutical development and to conduct due diligence on selected candidates. Vantage Point Advisors is an independent, independent business appraisal firm with offices in New York, Los Angeles, San Diego, Portland, Seattle and Dallas-Fort Worth.
“Our management team and employees have shown exemplary commitment and dedication to advancing Emerald’s cannabis business, but in a market with very high numbers of cannabis operating licenses, increasing competition and falling retail prices, the path to profitability and shareholder value was the way to go “Very challenging,” said Jim Heppell, Chairman of the Board of Directors of Emerald. “Rather than investing additional capital and effort to focus on this very demanding and saturated market, the board decided that Emerald’s shareholders were better served would be if the company exited the recreational and medicinal cannabis business and entered pharmaceutical development on a new business path that we believe has much greater potential for increasing shareholder value. “
The story goes on
“We also announce the resignation of Emerald’s President and CEO, Riaz Bandali, effective December 31st. Riaz had originally committed to lead Emerald through a restructuring to achieve financial stability and has been for the past two years successful in repositioning Emerald and restructuring its balance sheet and maximizing its liquidity position. Having reached a logical point in these efforts, he plans to pursue new opportunities. We appreciate what Riaz has done for Emerald and thank him for his commitment , his skills and his commitment and we wish him all the best, “added Mr. Heppell.” A successor to Riaz will be named before the end of the year. “
Emerald will file its third quarter financial results on Monday, November 29th.
Please visit www.emeraldhealth.ca for more information or contact:
Riaz Bandali, Chief Executive Officer
1 (800) 757 3536 extension # 5
Emerald Investor Relations
(800) 757 3536 ext # 5
Neither the Canadian Securities Exchange nor the regulatory agency (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Cautionary Statement Regarding Forward-Looking Statements: Certain statements in this press release that are not historical facts are forward-looking statements and are subject to important general and specific risks, uncertainties and assumptions that create the possibility that actual results or events could differ materially from our expectations Be expressed or implied in such forward-looking statements. These statements include the divestment of the company’s cannabis assets; Completion of acquisitions of pharmaceutical companies; Maximizing available cash; Reducing costs; and appointment of a new CEO.
We cannot guarantee that forward-looking statements will occur and readers are cautioned not to place undue reliance on such forward-looking statements. Such statements involve uncertainties due to COVID-19, including any continuing effects on production or operations; Changes in laws and regulations; Failure to identify acceptable acquisition candidates; Failure to identify potential buyers of the company’s cannabis assets; Failure to negotiate agreements with counterparties; Failure to obtain regulatory or shareholder approvals; Regulatory changes; as well as the risk factors outlined in Emerald’s annual information form and other regulatory filings. These statements are not historical facts but rather represent management’s views regarding future events, many of which are inherently uncertain and beyond management’s control.
The forward-looking statements contained in this press release reflect our expectations as of the date of this press release. Forward-looking statements are presented to provide information about management’s current expectations and plans and to enable investors and others to better understand our anticipated operating environment. Readers are cautioned that this information may not be suitable for other purposes. Emerald undertakes no obligation to update or revise any such statement to reflect new circumstances or unexpected events, if they occur, except as required by applicable law.
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