Sigma Analytical agrees to acquire Avalite analytical testing business and establish a preferred testing services relationship
Toronto, March 09, 2020 – Sigma Analytical Services Inc. (“Sigma”) has signed a letter of intent under which, Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF), may sell Emerald’s Avalite cannabis analytical testing operation. The companies also intend to establish a preferred partner relationship. Terms of the deal have been agreed to in principle and will be announced upon completion. Execution of definitive agreements is subject to due diligence and board approval of both companies and is expected to occur on or before April 19, 2020. Completion of the transaction will be subject to a number of conditions including settlement of final documentation and receipt of applicable regulatory and third-party approvals.
“We are very pleased to to expand our testing services in Western Canada. We see many benefits in being physically close to our clients (licensed producers and processors) and building true partnerships with them to enhance the quality of products.” said Dr. Kaveh Kahen, President and CEO of Sigma. “This is the main reason why we also started expanding to Colombia in 2019. We believe having a complete analytical and microbiology testing lab for cannabis in BC would give us the opportunity to establish similar partnerships with the thriving craft cannabis sector, as well as large producers, in British Columbia and Alberta.”
Riaz Bandali, President and Chief Executive Officer of Emerald, said, “We believe the analytical marketplace has excellent growth dynamics based on the positive global trend to legalize cannabis. However, it is necessary to have a critical mass of scientific expertise and scale. In our view, the best growth opportunity for our Avalite operation is to integrate it with a dedicated analytical services company. We are very pleased with the opportunity to move forward with a constructive relationship with Sigma and its group of experts in this segment.”
About Sigma Analytical Services
Sigma Analytical Services Inc., headquartered in Toronto, Canada, is a full-service GMP-certified analytical and microbiological testing laboratory, offering comprehensive analytical services, method development and validation, and consulting, in cannabis and cannabis derived products. Sigma Analytical has operations and partnerships in North America and South America.
Sigma continues to offer accurate testing services in the legal cannabis sector, while committing to advancing the understanding of cannabis science and establishing a global scientific network. As more countries legalize cannabis for medical and recreational purposes, this facilitation of research, knowledge sharing, and reliable testing, creates an invaluable addition in safety and quality.
About Emerald Health Therapeutics
Emerald Health Therapeutics, Inc. is committed to creating new consumer experiences with recreational and wellness-oriented cannabis products. With an emphasis on innovation and production excellence, Emerald has built a platform of distinct operating assets designed to uniquely serve the Canadian marketplace and international opportunities. These assets, all in full production, include: Pure Sunfarms, its joint venture in British Columbia, with its 1.1 million square foot Delta 3 greenhouse operation producing high quality, affordably priced products; Verdélite, a premium craft operation with an 88,000 square foot indoor facility in Québec; and Metro Vancouver, a health and wellness-oriented organic greenhouse (78,000 square feet) and outdoor operation. Its Emerald Naturals joint venture is creating a new wellness product category with its non-cannabis endocannabinoid-supporting product line and is expanding distribution across Canada.
Please visit www.sigmaanalytical.com for more information or contact:
+1 888 406 0016
info@sigmaanalytical.com
