Emerald Health Therapeutics Outlines Production and Processing Advancements
“With the first 1.1 million square foot (25 acre) greenhouse of our Pure Sunfarms joint venture now in full production and producing material net income and the second 1.1 million square foot greenhouse being converted for operation in 2020, we are now focused on finishing construction, licensing, and operational scaling of commercial cultivation and post-harvest processing in our other facilities and with third-party service providers, and have recently had multiple accomplishments to report,” said
Organic greenhouse operation launched with receipt of preliminary municipal permit; organic cannabis outdoor planting completed in Metro Vancouver
Emerald has received its preliminary municipal permit for its organic cannabis operation in Metro
This operation is planned to organically grow proprietary cannabis strains for sale as packaged dried flower and as extracted value-added products in its greenhouses and to produce organic cannabis mainly for extraction from its outdoor cultivation.
Summary and status of this operation:
- Greenhouse construction is complete and capital expenditures are essentially fully paid
Health Canadacultivation license allows production in 15,000 square feet of this facility; this area will initially be used to grow mother plants
- Emerald has submitted an amendment request to
Health Canadato expand production to the remaining 61,000 square feet
- This greenhouse is expected to be fully planted in the third quarter.
- Construction of the second 78,000 square foot greenhouse is advanced, with the bulk of the capital expenditures paid
- This greenhouse is expected to be in full production by early 2020.
- Recently received license amendment from
Health Canadafor outdoor cannabis cultivation on 12 acres of this site
- Completed the planting of 45,000 organic cannabis seedlings on the outdoor area on
- Expect first crop of outdoor cannabis flower to be harvested in Q3 2019
- Emerald is one of the few Canadian licensed producers licensed by
Health Canadato cultivate cannabis outdoors this year. In the 2019 outdoor growing season, Emerald will be growing for commercial purposes but will in particular assess cultivars and cultivation and harvesting techniques that would support the future potential scale-up of reliable, quality, and low-cost cannabis.
Emerald has submitted to
Emerald has dedicated a significant area in the Verdélite facility to create an advanced post-harvest processing capability. Packaging equipment able to handle up to 36,000 kg of dried flower annually is operating and being scaled toward full capacity. It is planning to have approximately 10,000 kg of annual extraction capacity operational in the fourth quarter of this year to augment and expand Emerald’s existing extraction capacity in
Summary and status of this operation:
- About 25,000 square feet is currently licensed for production by
Health Canada, with about 6,000 square feet being used for cultivation
- Upon receiving approval of the license amendment, Emerald aims to expand cultivation to approximately 40,000 square feet.
Large-scale CBD extraction and softgel encapsulation: final evidence package near submission
Within the next weeks, Emerald’s strategic manufacturing partner,
Separately, Emerald has contracted to buy approximately 1,200 acres of Canadian-grown hemp for the 2019 growing season and intends to process this harvest, along with its 2018 stored hemp harvest, through the Factors’ facility on a cost-plus basis.
This planned Factors hemp extraction capacity is complemented by Emerald’s additional contract relationships with third-party extraction service providers. It is also working to significantly expand extraction capacity in
With these resources in hand, Emerald has announced in recent months the launch and provincial purchases of its new high-potency SYNC 25 CBD oil in
Emerald has had a credit facility in place with Emerald Health Sciences, its largest shareholder, since
Emerald has also adjusted the payment terms of its purchase agreement with the vendors of its
Emerald’s obligation to Pure Sunfarms, triggered by the joint venture’s recent exercising of its option to acquire the 1.1 million square foot (25 acre)
Emerald also has a shareholder loan agreement with Pure Sunfarms, which was initially entered into on
Please visit www.emeraldhealth.ca for more information or contact:
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Emerald Investor Relations
(800) 757 3536 Ext. #5
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Cautionary Note Regarding Forward-Looking Statements: Certain statements made in this press release that are not historical facts are forward-looking statements and are subject to important risks, uncertainties and assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking statements. Such statements include obtaining required regulatory approvals; production and processing capacity of various facilities; expansion of facilities; obtaining additional cultivation licenses and other permits; production at various facilities; receipt of hemp deliveries; entering into of strategic agreements; payments of amounts owed to and owed by Emerald; transplanting crops; obtaining final municipal approvals; assessment of cultivation and harvesting techniques; scale up of reliable, quality low-cost cannabis; and anticipated production costs.
We cannot guarantee that any forward-looking statement will materialize, and readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements involve risks and uncertainties related to, among other things, changes of law and regulations; changes of government; failure to obtain regulatory approvals or permits; failure to obtain necessary financing; results of production and sale activities; results of scientific research; regulatory changes; changes in prices and costs of inputs; demand for labour; demand for products; failure of counter-parties to perform contractual obligations; as well as the risk factors described in the Company’s annual information form and other regulatory filings. The forward-looking statements contained in this press release represent our expectations as of the date hereof. Forward-looking statements are presented for the purpose of providing information about management's current expectations and plans and allowing investors and others to obtain a better understanding of our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. The Company undertakes no obligations to update or revise such statements to reflect new circumstances or unanticipated events as they occur, unless required by applicable law.
Source: Emerald Health Therapeutics Inc.