Emerald Health Therapeutics, Inc. (TSXV:EMH) (OTCQX:EMHTF) announced this morning that the company has acquired all of the issued and outstanding securities of Agro-Biotech, a medicinal cannabis producer that operates legally under the Cannabis for Medical Purposes Regulations (ACMPR) in Canada, for an exchange of $90M. Half of the $90M will be paid out in cash and half of it in Emerald Health Therapeutics in shares.
Emerald Health has acquired assets including a Health Canada cultivation license, land, and 75,000 sq. ft. purpose-built facility. Emerald Health will now have the ability serve customers located in Québec with high-quality cannabis products ahead of the 2018 legalized adult-use market. This deal also improves the company’s ability to further ability to market throughout eastern Canada.
Emerald Health Therapeutics has facilitated this deal to keep up with the expected demand of product when Canada legalizes the recreational use of cannabis this summer. Emerald is building out 1.1 million sq. ft. of greenhouse space in British Colombia, which has its cultivation license and is expected to have an output of 46,000 kg of cannabis. Emerald is also constructing a 500,000-square foot hybrid indoor and greenhouse cannabis growing facility in Metro Vancouver.
Yan Dignard, President of Agro-Biotech gave this statement in the press release:
“Agro-Biotech is one of only six Licensed Producers in Québec, Canada’s second largest province with a population of over 8.4 million. Our experienced and talented team collectively has over 60 years of cannabis growing and broad horticulture experience. We did this deal as we respect Emerald’s capabilities and look forward to working with their team to build a strong and differentiated cannabis product line in Québec and across Canada.”