- Emerald Health Therapeutics, Inc. has signed a definitive agreement to acquire the remaining shares of Northern Vine Canada Inc., owned by Abattis Bioceuticals Corp., for $2 million in cash and $4 million in shares of Emerald stock.
- Northern Vine is a Licensed Dealer under the provisions of the Canadian Controlled Drugs and Substances Act.
Emerald Health Therapeutics, Inc. has signed a definitive agreement to acquire the remaining shares of Northern Vine Canada Inc., owned by Abattis Bioceuticals Corp., for $2 million in cash and $4 million in shares of Emerald stock. This transaction increases Emerald’s ownership of Northern Vine from 65% to 100%. Northern Vine is a Licensed Dealer under the provisions of the Canadian Controlled Drugs and Substances Act.
“Product innovation is a primary pillar of Emerald’s global business strategy. The acquisition of Northern Vine allows us to leverage its dealer license and research and development facility to advance our research plans to develop cannabis formulations supporting new products for both recreational purposes and to treat a broad spectrum of human conditions and diseases,” said Chris Wagner, CEO of Emerald. “The dealer license would also enable Emerald to cost effectively source non-dried-flower cannabis products from suppliers in other countries.”
“Northern Vine will operate independently of Emerald and is committed to serving all clients, including Licensed Producers and patient-growers. Legalization of cannabis for medical and recreational purposes is expected to drive demand for analytical testing services to assess potency and concentration of toxic materials. The global market is expected to exceed $1 billion in 20181. We expect significant growth potential for Northern Vine in the Canadian analytical testing marketplace.”
An LD is permitted to conduct certain activities that Licensed Producers are not permitted under Access to Cannabis for Medical Purposes Regulations, such as importing/exporting cannabis oils, as well as preparing the manipulation, formulation, dosage form, strength or package size of cannabis products, including mixtures with other additives, controlled substances, and non-controlled substances. In addition, it allows Emerald to participate in the growing market for cannabis analytical testing, which is expected to grow in conjunction with increasing cannabis production volumes in Canada.
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In November 2017, Emerald acquired 53% of Northern Vine from Abattis for $2 million. In May 2018, Emerald increased its stake to 65% for an additional $2.75 million.
The Agreement also includes a milestone payment in the form of common shares of Emerald valued at $4 million if Northern Vine and/or Emerald receive gross revenue of $10 million from the sale of products or services introduced by Abattis.
Date: July 23, 2018
Source: Globenewswire
