Emerald Health Therapeutics Inc. plans to sell 7,408,000 units on a bought-deal basis at C$1.35 per unit for total gross proceeds of about C$10 million.
Each unit shall consist of one common share and one-half of one common share purchase warrant. Each warrant shall entitle the holder to acquire one share at a price of C$2 for a period of 24 months after the closing date.
The company agreed to grant the underwriter an overallotment option to buy up to an additional 1,111,200 units, exercisable in whole or in part, at any time on or before the date that is 30 days after the offering closes. If this option is exercised in full, an additional C$1.5 million will be raised and the aggregate proceeds of the offering will be about C$11.5 million.
Emerald intends to use the net proceeds to accelerate facility expansion and for working capital and general corporate purposes.
The closing date of the offering is scheduled to be Feb. 10 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.
Dundee Capital Partners is acting as the underwriter in the offering.