Conversion of First Quadrant of 1.1 Million Square Feet Greenhouse Facility Targeted for Completion in February 2018
RICHMOND, British Columbia, Nov. 13, 2017 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics Inc. (TSXV:EMH) (OTC:EMHTF) announced today that its licensed producer application for the Pure Sunfarms Delta 3 greenhouse facility under Access to Cannabis for Medical Purpose Regulations (“ACMPR”) has met the requirements of the paper-based review of Health Canada’s Office of Medical Cannabis (”OMC”). The OMC confirmed satisfactory provision of information regarding the security plan, record keeping and tracking systems, QA reports, and security clearance for key personnel, among other items. Pure Sunfarms is a partnership between Emerald and Village Farms International, Inc. (TSX:VFF) (“Village Farms”).
Accordingly, the OMC has invited the submission of written and visual evidence, upon completion of conversion of the facility, demonstrating that there is a functioning facility that adheres to the OMC’s regulations. Health Canada’s satisfactory review of this evidence may then result in their issuance of a cultivation license for the Pure Sunfarms facility. Pure Sunfarms has commenced physical conversion of the 1.1 million square foot Delta 3 greenhouse. Completion of conversion of the first 250,000 square feet of the greenhouse facility and submission of the confirmation of readiness documentation to Health Canada are expected in February 2018.
“We appreciate the fast, preliminary review by Health Canada of our licensed producer application for the Pure Sunfarms site,” said Dr. Avtar Dhillon, Executive Chairman of Emerald. “I applaud our team for advancing the application process to this stage as we work toward our goal of creating one of the most efficient, low-cost growing operations to serve the growing wellness and medical market as well as the anticipated recreational market in 2018.”
“The meticulous preparation by our teams and Emerald’s excellent track record of compliance with Health Canada have been beneficial in enabling an expeditious review process,” said Michael DeGiglio, CEO of Village Farms. “The Pure Sunfarms partnership combines the extensive expertise of Emerald in cannabis cultivation, research and development and Village Farms’ deep experience in large scale, efficient greenhouse cultivation. Together we are positioned to become one of the premier cannabis growers in Canada.”
Emerald has significant cannabis industry experience, a portfolio of diverse genetics, and an excellent record of operations under Health Canada’s stringent ACMPR regime. Village Farms is one of the largest and most technically advanced greenhouse produce growers in North America, with high-quality, low-cost greenhouse agricultural production.
Pure Sunfarms is converting its existing 1.1 million-square foot (25-acre) greenhouse facility located in Delta, BC to cannabis production for medical use and adult use, for which the Government of Canada is working to provide regulated and restricted access by July 2018. This facility is projected to yield about 75,000 kg of cannabis per year in 2020. Pure Sunfarms also has options to acquire from Village Farms two additional greenhouses with 3.7 million square feet, which could potentially yield an additional 225,000 kg of cannabis annually. At scale the cost of production including depreciation is expected to be less than $1.00 per gram.
Pure Sunfarms is converting its greenhouse from tomato growing into cannabis production using both natural and supplemental lighting. Upon completing the 250,000 square foot first phase, Pure Sunfarms will immediately continue with the next conversion stages, with the second quadrant expected to be completed in the fall of 2018.
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About Emerald Health Therapeutics Inc.
Emerald Health Therapeutics, Inc. (TSXV:EMH) (OTCQX:EMHTF) operates through Emerald Health Botanicals Inc. ("Emerald"), a wholly owned subsidiary and Licensed Producer under the Access to Cannabis for Medical Purposes Regulations. Emerald is authorized to produce and sell both dried medical cannabis flower and medical cannabis oil in Canada. It currently operates an indoor facility in Victoria, BC, and is progressing on expansion plans for a 150,000 s.f. property in Metro Vancouver and a partnership with Village Farms, called Pure Sunfarms, utilizing a 1.1 million s.f. existing greenhouse complex in Delta, BC. Emerald is one of Canada's most medically focused licensed producers, with a team highly experienced in life sciences product development and large-scale agribusiness. Its vision is to be a leading provider of cannabis products through its production capabilities, proprietary genetics, value-added products and branding, and superb customer experience. Emerald Health Therapeutics is associated with the Emerald Health group, which comprises multiple companies advancing diverse botanical, nutraceutical and pharmaceutical products that may provide wellness and medical benefits by interacting with the body’s endocannabinoid system.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statements Regarding Forward Looking Information
Certain statements in this press release constitute forward-looking statements, within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, are "forward-looking statements".
We caution you that such "forward-looking statements" involve known and unknown risks and uncertainties that could cause actual and future events to differ materially from those anticipated in such statements.
Forward-looking statements include, but are not limited to, statements with respect to closing of the proposed transaction; expansion of Emerald’s business; creation of strategic development opportunities; commercial operations; construction or conversion of production facilities; international opportunities for the Company; the Company becoming a leading Canadian supplier of cannabis products; expected timing of any of the above matters; and other information that is based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.
Emerald Health Therapeutics Inc. does not intend, and does not assume any obligation, to update these forward-looking statements except as required by law. These forward-looking statements involve risks and uncertainties relating to, among other things, failure to obtain regulatory approval for closing of the proposed transaction or to meet the conditions set out in the Agreement; failure of the federal government to approve legislation legalizing sales of non-therapeutic adult-use cannabis; failure to obtain Health Canada and other regulatory approvals; failure to obtain necessary financing; results of production and sale activities; the Company's historical experience with medical marijuana operations; results of scientific research; uninsured risks; regulatory changes; difficulties in construction or in obtaining qualified contractors to complete construction or conversion of facilities; availability of production facilities; timeliness of government approvals and the granting of permits and licenses; changes in prices and costs; actual operating and financial performance of facilities; equipment and processes relative to specifications and expectations; as well as the other risk factors set out in the Company’s annual information form and other filings with the applicable Canadian securities regulators, which may be viewed at www.sedar.com. Actual results may differ materially from those expressed or implied by such forward-looking statements.