SEATTLE, WA--(Marketwired - Apr 26, 2017) - CFN Media Group ("CFN Media"), the leading agency and digital media network dedicated to legal cannabis, today announced publication of an article covering Emerald Health Therapeutics Inc.'s (
Emerald Health began its public offering on April 10 and ended up issuing 13,170,000 units at $1.85 each for gross proceeds of $24,364,500. The day following the initial closing, the company announced the closing of an over-allotment, adding another $2,758,923 in gross proceeds to the deal.
The units sold in the public offering consist share of common stock and one-half of a common share purchase warrant. The warrant enables the holder to acquire one share of common stock at a price of $2.60 per share for a 24 month period after the offering. If the company's stock exceeds $3.50 per share for 20 consecutive trading days, the company may accelerate the expiration date to the 30th day after notice is given.
Emerald Health shares trade at $1.28 each right now, which is below the $1.85 unit price and the $2.60 per share exercise price. In other words, investors can purchase the stock in the open market with 100% upside before the warrants start to trigger while benefiting from the $27 million in capital to expand its footprint in the industry. The company's modest ~$120 million market capitalization (factoring in all shares issued post financing) is also modest relative to many other licensed producers.
Ambitious Expansion Plans
Canada's cannabis industry is expected to reach upwards of $22 billion over the coming years, according to Deloitte Canada, driven by the legalization of recreational use. The analyst projects that $8.7 billion will come from the plant's retail market while ancillary products and services -- like growers, testing labs, lighting, and security equipment -- will bring in the rest. This market could make the cannabis industry rival the country's wine and spirits industry in size.
Emerald Health plans to build out its presence in 50,000 square foot expansions based on demand. Initially, the company plans to expand its footprint to 100,000 square feet in 2017 and generate about 10,000 kilograms of dried cannabis per year. Its 32-acre property means that it can continue to expand its presence with up to a million square feet of growing space capable of producing upwards of 100,000 kilograms per year of dried cannabis.
In addition to its production capacity, the company continues to differentiate its products with a very large and diverse library of strains and products that are backed by actual clinical studies. The company's facilities also grow, extract, and process cannabis to pharmaceutical grade standards, while keeping costs low enough to be very competitively priced. Management's experience in life sciences and genetics underscores their commitment to quality.
Please follow the link to read the full article: http://www.cannabisfn.com/emerald-health-oversubscribed-offering-finance-expansion/
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About CFN Media
CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.
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