Emerald Health Pharmaceuticals has filed a Tier II Reg A+ preliminary prospectus seeking to raise $50 million by selling up to 10 million shares at $5 per share. The San Diego company is owned by Emerald Health Sciences, which is the parent company of Canadian LP Emerald Health Therapeutics (TSXV: EMH) (OTC: EMHTF), and led by Chairman Avtar Dhillon, who is also the Chairman of Emerald Health Therapeutics.
The company will have 20 million shares outstanding as well as 295,000 options at $5.00 if it sells all 10 million shares, with Emerald Health Sciences holding 9 million and officers and directors another 1 million. As of September 30, 2017, the company had assets of $87,412 and liabilities in excess of $1.4 million, but this excludes three U.S, two Japanese and one European patent and fourteen patents pending purchased last year for $112,000 from VivaCell.
The company is developing two different product candidates, both of which have synthetic cannabinoids as the new chemical entities and are being developed for oral administration:
- EHP-101, which uses synthetic CBD (cannabidiol) and has an initial indication for treatment of Multiple Sclerosis and Scleroderma
- EHP-102, which uses synthetic CBG (cannabigerol) and targets Huntington’s and Parkinson’s diseases
Emerald Health Pharmaceuticals projects that it will be fully funded for two years if it raises $50 million, with over $37 million aimed at clinical studies, almost $5 million targeted for R&D and about $7.5 million earmarked for general and administrative expenses.