Emerald Health Pharma Files for $50 Million Reg A+ IPO

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.

Exclusive article by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

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