Emerald Health Therapeutics (TSXV: EMH) is charging ahead with its previously announced shares for debt transaction with that of its partially owned subsidiary Emerald Health Sciences. The transaction is anticipated to reduce Emerald Health’s debts owed related to a loan as well as to trades payable.
In total, $2,816,963 in debt will be settled via the transaction, which will see 9,713,666 common shares of Emerald Health Therapeutics issued to Emerald Sciences at a price of $0.29. Of the total figure issued, $794,182 is related to a previously entered loan agreement whereas the remainder is in relation to trade payables.
Initially announced on December 16, the total figure of monies owed as well as shares issued has decreased marginally since the announcement. Whereas before 10.3 million shares were to be issued to Sciences as a means of settling $3.0 million in debt, those figures have decreased to the figures as described above. The result, is that Sciences will now own a total of 23.1% of the firm, rather than the previously anticipated 23.4%.
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The transaction is subject to receiving regulatory approval. However, the independent members of Emerald Health’s Board of Directors have provided approval for the transaction.
Emerald Health Therapeutics last traded at $0.32 on the TSX Venture.
Information for this briefing was found via Sedar and Emerald Health Therapeutics. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
