Through a share purchase agreement, Quinto Resources Inc. is now at liberty to purchase all of the issued and outstanding shares of various subsidiaries wholly-owned by Emerald Health Therapeutics Inc (OTCMKTS:EMHTF). The subsidiaries, which jointly operate a premium 88,000 square foot craft cannabis production indoor facility, include Verdélite Sciences, Inc. and Verdélite Property Holdings, Inc.
The $ 21 million cash transaction was negotiated at arms-length and included a collective amount of cash from each of the Subsidiaries at the closing date. Once the transaction is concluded, the Subsidiaries will become Quinto’s wholly-owned subsidiaries. This will also result in a change of business for Quinto under the guidelines of the TSXV.
The Financing of the Acquisition by Quinto
The purchase agreement is comprehensive and contains all the necessary representations, including warranties, indemnities, covenants, and conditions. For the benefit of each party, they are customary for a transaction of this nature.
Meanwhile, Quinto has identified several ways of financing the transaction. It will use the combination of private placements and bridge financing. This comes in two debt bridge financings of five million dollars each. The company is also looking up at a brokered private placement, which has close to twelve million dollars. An additional amount is expected from Quinto’s net proceeds.
Emerald’s Cannabis and Non-Cannabis Products
The Licensed Producer of medical cannabis has decades of experience in pharmaceutical innovation. The company has distinct medical and wellness-oriented products, serving both the Canadian and international markets. Emerald owns a 78,000 square feet production facility based in Metro Vancouver. It is reportedly capable of producing organic-certified products, particularly Verdélite.
Another facility, Pure Sunfarms, a joint venture in Delta, BC, also produces high-quality cannabis. Surprisingly and at the height of many businesses’ closure due to COVID-19, this particular one remained open.
Pure Sunfarms’ facilities in Canada have observed the highest levels of health and safety in their safety. It has continued to adhere to heightened hygiene practices and safety protocols. Emerald says that despite the pandemic’s uncertainty, it remains committed to expanding the distribution network and production of natural wellness products.
 Agrees to Sell its Québec Cannabis Business to Quinto Resources through a Share Purchase Agreement){kind=link}