Emerald Health Therapeutics to acquire control of Northern Vine
By Emerald Health Therapeutics
Oct. 30, 2017, Victoria, B.C. - Emerald Health Therapeutics has announced that it has signed a definitive agreement with Northern Vine Canada Inc. and Abattis Bioceuticals Corp. to invest $2.5 million into Northern Vine to acquire 53 per cent of the company and appoint three of its four directors. Abattis will continue to hold the remaining 47 per cent of Northern Vine.
By Emerald Health Therapeutics
Northern Vine is a Licensed Dealer (“LD”) under the provisions of the Canadian Controlled Drugs and Substances Act, which permits Northern Vine to carry out a much broader range of cannabis research and development and pursue international business opportunities that Emerald is not permitted to undertake under Emerald’s Licensed Producer (“LP”) designation under the Access to Cannabis for Medical Purpose Regulations (“ACMPR”).
Of notable importance, Northern Vine’s LD status allows it to not only export/import cannabis, as LPs are permitted to do under ACMPR, but to also export/import cannabis oils.
The acquisition of Northern Vine significantly expands Emerald’s ability to carry out research and development, through Northern Vine, as Northern Vine is not limited by ACMPR restrictions and is authorized to prepare any manipulation, formulation, dosage form, strength or package size of cannabis which can be mixed with additives and other controlled drugs.
Additionally, Northern Vine further provides Emerald with immediate exposure to another strategic opportunity in the current medical and anticipated legal recreational cannabis markets in Canada: analytical testing. Northern Vine currently offers LPs and patients registered under the ACMPR complete microbiology and chemical analyses, with testing of product potency as well as testing for the presence of unwanted pesticides, microbes, and environmental toxins in dried plant products, extracts, derivatives and edibles. Northern Vine has agreed to carry out analytics on Emerald’s cannabis on a Preferred Customer basis following closing of the proposed transaction.
“Our vision for product innovation is one of the pillars of Emerald’s business strategy that will be materially enabled by our acquisition of control of a Licensed Dealer,” said Chris Wagner, Chief Executive Officer of EHT. “The broad set of permitted activities provided to Northern Vine, as a Licensed Dealer, will provide Emerald with tremendous latitude to advance its product development and clinical plans as it develops its cannabis formulations for the treatment of human disease.”
“A Licensed Dealer has a significantly broader license than a Licensed Producer to carry out research and development and to import and export cannabis oils and other controlled substances,” said Avtar Dhillon, MD, Executive Chairman of Emerald. “Our acquisition of control of Northern Vine will set the wheels in motion on a number of strategic business opportunities we have been nurturing.”
Closing of the proposed transaction, which is subject to receipt of all necessary regulatory approvals and certain other conditions customary in transactions of this nature as set forth in the Agreement, is expected to occur within the next three weeks.