Replies to post #10227 on Emerald Health Therapeutics Inc fka EMHTF

[grleroy]

I give KarlMoney a standing ovation … You are 100% correct … I still own a few shares here, but I started selling EMH about 8 months ago and bought more VFF … I still find it very odd in how EMH hit a $2 day high then fell 0.39 cents ...

[Excalibur13]

Cant wait til PSF pays back the 13 mil to EMHTF , it should cover the cost of the remaining due for buildout of D2.

Capital commitments

Emerald has had a credit facility in place with Emerald Health Sciences, its largest shareholder, since August 25, 2015. This facility is structured to provide a revolving loan in the form of a demand promissory note at an interest rate of 12% per annum. Emerald has currently drawn down on this facility in the amount of $9.7 million.

Emerald has also adjusted the payment terms of its purchase agreement with the vendors of its Quebec operation, Agro-Biotech, now called Verdélite. With $9 million owing, Emerald will pay $1 million per month from August through November and a final payment of $5 million in December, plus interest on the amount accruing at a rate of 10% per annum from May 31, 2019.

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) Delta 2 greenhouse (adjacent to its existing Delta 3 1.1 million square foot greenhouse in Delta, BC), which exercise was fully supported by Emerald, was $25 million. To date, Emerald has paid Pure SunFarms approximately $12.5 million of its $25 million commitment. The balance of roughly $12.5 million is payable as Pure Sunfarms gradually makes construction and equipment procurement commitments for the D2 conversion project and is expected to be substantially paid by the end of 2019.

Emerald also has a shareholder loan agreement with Pure Sunfarms, which was initially entered into on July 5, 2018, whereby Emerald provided $13,000,000 to Pure Sunfarms. The loan amount bears interest at the rate of 6.2% per annum, calculated annually, and is payable upon demand. While operating cash flow from Pure Sunfarms is initially intended to be used for the buildout of Delta 2, Emerald expects that repayment of the loaned funds will contribute to its cash flow potentially as soon as the fourth quarter of 2019, although the precise timing of repayment of this demand loan is not yet certain.