SOURCE: CFN Media

CFN Media

November 01, 2017 09:00 ET

Emerald Health Expands Capabilities with Northern Vine Labs Deal -- CFN Media

SEATTLE, WA--(Marketwired - Nov 1, 2017) - CFN Media Group ("CannabisFN"), the leading creative agency and media network dedicated to legal cannabis, announces publication of an article covering Emerald Health Therapeutics Inc.'s (TSX VENTURE: EMH) (OTCQX: EMHTF) recent deal with Abattis Bioceuticals Corp. to acquire a controlling interest in Northern Vine Labs. The agreement could grow Northern Vine into a thriving center for analytical testing, genetic research and development, tissue culture, and proprietary medicinal and therapeutic formulations. As a Licensed Dealer, Northern Vine will also be able to export and import cannabis oils around the world, unlike ACMPR licensed producers.

Under the agreement, Emerald Health will invest $2.5 million to acquire 53% of Northern Vine and appoint three of four directors. Abattis will continue to hold the remaining 47% equity stake in Northern Vine and benefits from the deal in a variety of other ways. Meanwhile, Emerald Health plans to utilize Northern Vine for cannabis testing, product innovation, and potentially import/export capabilities for cannabis oils.

Broadening Licensing Capabilities
Emerald Health benefits from a Licensed Dealer that has much broader capabilities than a Licensed Producer when it comes to carrying out research and development, importing and exporting cannabis oils, and related activities. Northern Vine also provides exposure to the cannabis testing industry, as it currently provides LPs and registered patients with complete microbiology and chemical analyses to ensure product is safe and efficacious.

"Our acquisition of control of Northern Vine will set the wheels in motion on a number of strategic business opportunities that we have been nurturing," said Emerald Health Executive Chairman Avtar Dhillon, MD, in a press release announcing the deal. "We see tremendous synergies and opportunities to work with Abattis both on extraction and research and development of medicinal and therapeutic products."

In addition to the Northern Vine transaction, Emerald Health has been working to dramatically expand its cannabis production capacity with a new facility on its 32-acre property in Metro Vancouver and its partnership with Village Farms, which utilizes an existing 25-acre greenhouse complex that is being retrofitted to grow cannabis. The company is focused on high-quality product innovation particularly for wellness and medical benefit to set it apart from many licensed producers in the space that are focused on scale.

Opening the Door to the Future
Abattis Bioceuticals benefits from Emerald Health's wealth of scientific knowledge, pharmaceutical connections, and access to capital, as well as a $2.5 million capital infusion into the subsidiary. The strong relationship between Abattis and a rapidly growing and respected licensed producer in Canada also paves the way for future joint ventures for its extraction technology and adds credibility to its ability to create laboratories - which is essential to its business model moving forward.

"This is an important turning point for Abattis," said Robert Abenante, President and CEO of Abattis and Northern Vine. "The company has always desired a strategic partner for its laboratory and has now partnered with one of the most experienced LPs in Canada. As we commence rolling out our business model for extraction, attracting a partner like Emerald is proof that we have an extremely talented team."

In addition to Northern Vine, Abattis has licensed a proprietary extraction technology with a patented counter-current layering system that yields 98% of cannabinoids -- 18% better than today's leading methods. A continuous system of columns can either remove impurities and pesticides from full spectrum oil or individual cannabinoids and terpenes to 99% purity levels. And, it's at a lower cost than traditional CO2 extraction methods.

Abattis believes that a major growth area of the industry moving forward lies in the extraction of active ingredients from cannabis to create products such as edibles and the company's previously announced CBD-based sunscreen. The new relationship with Emerald Health should provide the company with products to test and biomass to convert to those products, utilizing the patented extraction tech to further the company's stated goal of becoming a key downstream service and products provider.

Please follow the link to read the full article: http://www.cannabisfn.com/emerald-health-expands-capabilities-northern-vine-labs-deal/

About CFN Media
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Except for the historical information presented herein, matters discussed in this release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC, which owns CFN Media and CannabisFN.com, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice. Emerging Growth LLC may be compensated for its services in the form of cash-based compensation or equity securities in the companies it writes about, or a combination of the two. For full disclosure please visit: http://www.cannabisfn.com/legal-disclaimer/

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