CFN Media Group reported publication of an article showcasing Emerald Health Therapeutics Inc (CVE:EMH) recent public offering and its growth in expanding its operations. The company commenced its public offering earlier in this month and ended up issuing 13.170 million units priced at $1.85 per unit for gross proceeds of around $24.364 million. Just after the initial closing, the firm reported that over-allotment process was a success, adding another $2.758 million in gross proceeds to the offering.

The highlights

Emerald Health reported that the units offered in the public offering comprise one-half of a common stock purchase warrant and one share of common stock. The warrant allows the holder to buy one share of common stock priced at $2.60/share for a 24-month period subsequent the offering. If the firm’s stock surpasses $3.50/share for twenty successive trading sessions, the firm may rush the expiration date to the 30th day once notice is given.

In the last trading session, Emerald Health shares price closed at $1.19, which is far below unit price of $1.85 and the exercise price of $2.60 per share. In other words, shareholders can buy the shares in the open market with 100% gains before the warrants begin to trigger while gaining from the $27 million in capital to support its footprint in the market. The firm’s ~$95 million market capitalization, discounting in shares issued post financing, is modest compared to many other approved producers.

Emerald Health intends to build out its presence in extensive expansions depending on demand. Preliminary, the firm intends to expand its presence to 100,000 square feet this year itself and produce dried cannabis around 10,000 kilograms per year. Its 32-acre asset indicates that it can expand its footprint with up to 1,000,000 square feet of mounting space capable of generating upwards of 100,000 kilograms annually of dried cannabis.

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