VICTORIA, British Columbia, Aug. 30, 2018 (GLOBE NEWSWIRE) — Emerald Health Therapeutics, Inc. (TSXV:EMH; OTCQX:EMHTF) (“Emerald” or “the Company”) has filed its financial statements and management discussion and analysis for the three and six months ended June 30, 2018. They are available for viewing on www.sedar.com or on the Company’s website. All figures are expressed in Canadian dollars unless otherwise stated.

“I am proud of the success we’ve had scaling our business so far this year,” said Chris Wagner, CEO of Emerald Health Therapeutics. “Since the start of the second quarter, we acquired and began cultivating cannabis at our Quebec-based licensed producer Agro-Biotech, substantially increased our licensed cannabis production area at our Pure Sunfarms joint venture to roughly 420,000 square feet, and obtained from Health Canada Pure Sunfarms’ sales license. We signed our first provincial supply agreement with our home province of BC on terms we were very happy with. We also announced a term sheet for a strategic alliance with Factors Group, Canada’s largest nutritional supplement marketer and manufacturer, which we expect to significantly expedite our plans to process large quantities of biomass to extract and encapsulate bioactive compounds from cannabis and other plants.”

Selected Quarterly Financial Information

The financial information in the following tables summarize selected financial information for the Company for the last eight quarters which was derived from annual financial statements prepared in accordance with IFRS or interim financial statements prepared in accordance with IFRS applicable to the preparation of interim financial statements, IAS 34, Interim Financial Reporting:

2018    2017
June 30
($)
March 31
($)
December 31
($)
September 30
($)
Revenue 284,262 373,218 279,362 211,316
Share-based payments 2,081,661 1,954,047 1,979,553 271,968
Interest revenue 274,436 250,064 43,024 60,997
Share of income (loss) from JV 682,431 (301,793) (44,562) (278,016)
Net Loss (5,610,970) (5,045,420) (4,027,569) (1,939,371)
Net Loss per share (basic and diluted) (0.04) (0.04) (0.04) (0.02)
2017    2016
  June 30
($)
March 31
($)
December 31
($)
September 30
($)
Revenue 245,708 201,268 124,251 48,933
Share-based payments 369,788 201,186 137,113 467,878
Net Loss (1,726,523) (1,205,858) (880,424) (1,009,841)
Net Loss per share (basic and diluted) (0.02) (0.02) (0.01) (0.02)

BUSINESS UPDATE FOR AND SUBSEQUENT TO THE REPORTING PERIOD

Cannabis Sales Agreements – Adult-use Markets

In July 24, 2018, the Company signed a Memorandum of Understanding (“MOU”) with the British Columbia Liquor Distribution Branch (“BCLDB”) to supply the Company’s high-quality cannabis products to the BCLDB to serve the adult-use market throughout British Columbia.

Expansion Projects

The Company’s joint venture, Pure Sunfarms, continues to move towards achieving its goal of large-scale, high-quality, low-cost cannabis production. On July 27, 2018, Pure Sunfarms received its cannabis sales license from Health Canada. Additional space continues to be developed for cannabis production at the Pure Sunfarms’ 1.1 million-square foot (25-acre) greenhouse facility located on a 50-acre parcel of land in Delta, British Columbia (“Delta 3”), with the entire 1.1 million square foot Delta 3 site expected to be in production in 2019.

On August 21, 2018, the Company announced that Mandesh Dosanjh has been appointed President and Chief Executive Officer of Pure Sunfarms.

Supply Agreements

On April 30, 2018, the Company entered into a supply agreement with Pure Sunfarms whereby the Company has agreed to purchase 40% of Pure Sunfarms’ production in 2018 and 2019 at a set price per gram.

Acquisitions

On May 2, 2018, the Company acquired 100% of the issued and outstanding shares of 8611165 Canada Inc. and its affiliate 9353-8460 Quebec Inc. (together “Agro-Biotech”), and the shareholder loans payable by Agro-Biotech, for total consideration of $90.0 million, subject to adjustment, payable 50% in cash and 50% in Common Shares.

Agro-Biotech is a Licenced Producer under the ACMPR located in Saint-Eustache, Quebec. Agro-Biotech’s assets include land and a 75,000 square foot indoor grow facility. Agro-Biotech has built out 20,000 square feet of this facility to date and Emerald expects to have the remainder of the 75,000 square foot facility equipped to produce high quality dried cannabis flower and be fully operational by early 2019.

Emerald Health Naturals Inc.

On April 17, 2018, the Company entered into a binding agreement with Emerald Health Bioceuticals Inc. (“EHB”, a company related by common ownership), 1160305 BC Ltd., GAB Innovations, Inc. and Dr. Gaetano Morello, a director of the Company’s parent company, Emerald Health Sciences, with respect to the formation of Emerald Health Naturals, Inc. (“EHN”).  Subject to regulatory approval, the Company agreed to invest $5.0 million for 51% ownership of EHN and EHB will grant EHN the exclusive Canadian distribution rights to EHB’s product line for 49% ownership of EHN. EHB’s product line consists of nutritional supplements, which use non-cannabis, non-psychoactive plant-based ingredients to provide potentially beneficial support to the body’s endocannabinoid system. The TSXV has given conditional approval to the transaction subject to receipt and review of material agreements and a news release