Stock Options Awarded By Emerald Health Therapeutics Inc (OTCMKTS: EMHTF)
Employees, officers and directors of Emerald Health Therapeutics Inc (OTCMKTS:EMHTF) have been awarded stock options totaling 2,645,000 at $4.25 exercise price per common share. A quarter of the five-year stock options will vest on the grant date while 25% will vest later. Stock options issued to directors will however vest immediately. Following the announcement shares of Emerald Health Therapeutics Inc fell by 7.21% on Wednesday to close the day at $3.99 per share.
The stock options are part of Emerald’s incentive plan which received the approval of the TSX Venture Exchange as well as the shareholders of the company. The TSX’s applicable policies will apply with regards to the stock options.
Restricted stock units
Additionally restricted stock units numbering 350,000 have been issued to the firm to particular directors. Settling of the restricted stock units will be done by issuing 350,000 shares at a price of $4.25 per share and these will vest in 2019 on January 15. They could also vest at an earlier date if the board decides otherwise on condition the director remains with the firm by the vesting date either as a consultant, employee or director.
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The awarding of stock options comes almost a month since Emerald Health Therapeutics announced that Health Canada had positively reviewed the firm’s license application for a fourth production facility. This is with regards to a greenhouse measuring 75,000 square feet which is expected to be completed by next year’s third quarter. By the end of next year Emerald intends to have expanded the cultivation space to half a million square feet.
Increased production capacity
“With significant, secure supply from our large-scale Pure Sunfarms partnership and Emerald facilities, and our value-added product development plans, we intend to be well-positioned for growth in the adult use market in the near and long term,” Avtar Dhillon, Emerald’s Executive Chairman, said.
Once the first phase of construction is completed visual and written evidence will however have to be submitted to the Office of Medical Cannabis at Health Canada to show proof of a functioning facility which adheres to the regulations. In the event of a satisfactory review by Health Canada a cultivation license for the new facility may be issued.
The firm is eyeing to significantly increase product sales once adult-use of marijuana is legalized next year in summer. In the third phase of construction more than 350,000 square feet are expected to be added. Emerald is also putting up corporate offices as well as facilities for extraction as well as other purposes.
Village Farms International Inc (OTCMKTS: VFFIF) and Beacon Securities Limited have reached an agreement which will see the latter become the lead underwriter in the efforts of the former to raise $13.5 million in a bought deal offering. Following the news, shares of Village Farms International Inc rose by 9.29% to close the day at $5.68 per share on Wednesday. The offering will however be subject to regulatory approval including that of the stock exchange.
Pure Sunfarms Corp is on the other hand making a contribution of approximately $20 million. This cash amount will be used to meet the costs involved in converting the Delta 3 facility. An application license has already been submitted to the regulator for Delta 3 greenhouse and approval has already been granted. Consequently works on converting the facility have already started and the initial 0.25 million square feet quadrant is expected to be completed by February next year.