Emerald Health Therapeutics, Inc. (TSXV: EMH) (OTCQX: EMHTF) is selling its Quebec cannabis business to Quinto Resources Inc. (TSXV: QIT).
Under the share purchase deal, a Canadian gold exploration company agreed to buy Emerald’s wholly owned subsidiaries — Verdélite Sciences Inc., and Verdélite Property Holdings Inc. — for $21 million.
The transaction is expected to close on or before August 31, Emerald confirmed Friday.
The two subsidiaries own and operate the St. Eustache, Québec-based 88,000 square foot cannabis production indoor facility.
In addition, Emerald will retain the right to sell its products into the Québec market.
Quinto noted it would utilize both private placements and bridge financing to fund the acquisition.
Emerald CEO Riaz Bandali said they are “proud of what we built in Québec, which is a sophisticated cannabis growing operation with a competent and motivated team.”
Bandali expects this transaction will “significantly improve our balance sheet,” adding they see “benefits in consolidating our asset base.”
Meanwhile, the company’s Richmond-based growing facility recently completed its first full quarter of production and sales, disclosed Bandali.
During the first quarter of 2020, its 41.3%-owned joint venture, Pure Sunfarms, sold around 10,365 kilograms of flower and trim. That’s a year-over-year increase of 60%.
Moreover, over the fourth quarter of 2019, which was its fifth consecutive profitable quarter, the JV saw its retail market volume increasing by 179%.
Upon receiving Saskatchewan Liquor and Gaming Authority’s approval, Pure Sunfarms has begun shipping packaged dried flower products to the province.
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