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Emerald Health Therapeutics’ Pure Sunfarms JV Reaches Q2 Sales of $32 Million, 78% EBITDA Margin, $0.65/Gram All-in Production Cost, and Third Consecutive Quarter of Profitability

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VICTORIA, British Columbia, Aug. 13, 2019 (GLOBE NEWSWIRE) — Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF) has provided preliminary, unaudited financial results for the second quarter of 2019 for its BC-based 50%-owned joint venture, Pure Sunfarms (PSF). The Company will report its complete financial results for the second quarter ended June 30, 2019, after market close on Wednesday, August 28th, 2019, and host its second quarter 2019 financial results conference call on Thursday, August 29th, 2019 at 10:30 a.m. ET.
Pure Sunfarms’ sales sequentially increased 125% to CAD$32 million. Net income, which includes a $20 million net gain attributable to changes in the valuation of biological assets, exceeded $34 million, representing a third consecutive quarter of profitability. EBITDA was $25 million, resulting in an EBITDA margin of approximately 78%, and net cash flow from operating activities exceeded $6 million. The operation achieved a gross margin of approximately 84% before non-cash adjustments to the fair valuation of inventory and biological assets. All-in production cost was $0.65 per gram based on increased production volume and lower seasonal costs (e.g. electricity). PSF sold approximately 8,000 kg of cannabis in the second quarter, and approximately 12,000 kg for the first half of the year.“The second quarter financial results of our 50%-owned joint venture, Pure Sunfarms, reflects the progression of our vision and our collective ability to develop a premiere cannabis operation,” said Dr. Avtar Dhillon, Executive Chairman and President of Emerald. “We worked closely with our JV partner to design an ideal operating configuration. With continued optimization, and expansion underway to double overall output at Pure Sunfarms to approximately 150,000 kg annually, we anticipate significant growth in operating cash flow and the value of this asset to Emerald.”A key upcoming milestone is the expected amendment by Health Canada of Pure Sunfarms’ processing license for the first greenhouse, D3, which will allow Pure Sunfarms to commence direct sales of packaged cannabis products to provincial distribution channels. An additional key milestone scheduled to be reached by year end is completion of the 65,000 square foot GMP-certified processing center, including extraction. Concurrent with these steps and the substantial upward scaling of cultivation in D3, conversion of Pure Sunfarms’ second greenhouse, D2, is underway, with the first harvest expected in mid-2020.“Our joint venture, Pure Sunfarms, is setting a precedent in the Canadian cannabis industry with its pace of operational scaling, very low-cost production, and impressive financial results despite reaching full-scale production just part way through the quarter,” said Riaz Bandali, Chief Executive Officer of Emerald. “PSF is achieving these results based on its efficient, large-scale quality production. While exceptional returns are being generated through bulk sales, we look forward to PSF obtaining Health Canada’s approval to sell packaged products directly into provincial sales channels, which will enable PSF to broaden its business model and customer base.“Emerald has purchased from PSF a volume of product sufficient to help meet its requirements for the recreational and medical market. As we continue to focus on building a unique product portfolio and scaling up our wholly-owned cultivation, packaging, and extraction capabilities, we will leverage our opportunity to purchase up to 40% of Pure Sunfarms’ production at a fixed price, per our agreement, as needed during the course of 2019. Emerald is excited about the success of the PSF model and its value as a core investment in Emerald’s portfolio of operating assets.”Emerald’s financial results for the second quarter ended June 30, 2019, which include the financial results of Pure Sunfarms on an equity basis, are in the final stages of completion and will be reviewed by the Company’s auditors prior to release to the public after market close on Wednesday, August 28, 2019. The Company will host a conference call on Thursday, August 29, 2019 at 10:30 a.m. ET.To access the audio broadcast, please dial (866) 652-5200, or via the Internet at: https://services.choruscall.com/links/emhtf190530.html.An archived version of the presentation will be available for 90 days on the “Investors” section of Emerald’s website: https://ir.emeraldhealth.ca/events-and-presentations.About Emerald Health Therapeutics, Inc.Emerald Health Therapeutics, Inc. is a Canadian licensed producer of cannabis products, with strategic initiatives focused on differentiated, value-added product development for medical and adult-use customers supported by novel intellectual property, large-scale cultivation, extraction, and softgel encapsulation, as well as unique marketing and distribution channels. Its 50%-owned Pure Sunfarms operation in British Columbia has reached its full run-rate annual production of approximately 75,000 kg in its first 1.1 million square foot greenhouse Delta 3 operation; its second 1.1 million square foot greenhouse is planned to be in full production by the end of 2020. Emerald’s two wholly-owned facilities in Québec, a high-quality indoor growing and processing facility, and in British Columbia, an organic greenhouse and outdoor operation, are completing construction and are working toward final licensing extension. Emerald has also contracted for approximately 1,200 acres of hemp annually in 2019 to 2022 with the objective of extracting low-cost CBD. Its team is highly experienced in life sciences, product development, large-scale agri-business, and marketing.Please visit www.emeraldhealth.ca for more information or contact:Emerald Investor Relations
(800) 757 3536 Ext. #5
invest@emeraldhealth.ca
Non-GAAP Financial MeasuresThis press release contains references to EBITDA which is not a measure that has any standardized meaning prescribed by IFRS and is therefore referred to as a “non-GAAP measure”. Non-GAAP measures used by the Company may not be comparable to similar measures used by other companies. EBITDA is defined as “income (loss) before interest expenses, taxes, depreciation, amortization, foreign exchange losses, and the net impact of biological asset values on income.The Company uses this non-GAAP measure because it provides additional information regarding performance of Pure Sunfarm’s overall business that is not otherwise reflected under IFRS.Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.Cautionary Note Regarding Forward-Looking Statements: Certain statements made in this press release that are not historical facts are forward-looking statements and are subject to important risks, uncertainties and assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking statements. Such statements include obtaining required regulatory approvals; production and processing capacity of various facilities; expansion of facilities; obtaining additional cultivation licenses and other permits; production at various facilities; receipt of hemp deliveries; entering into of strategic agreements; payments of amounts owed to and owed by Emerald; transplanting crops; obtaining final municipal approvals; assessment of cultivation and harvesting techniques; scale up of reliable, quality low-cost cannabis; and anticipated production costs.We cannot guarantee that any forward-looking statement will materialize, and readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements involve risks and uncertainties related to, among other things, changes of law and regulations; changes of government; failure to obtain regulatory approvals or permits; failure to obtain necessary financing; results of production and sale activities; results of scientific research; regulatory changes; changes in prices and costs of inputs; demand for labour; demand for products; failure of counter-parties to perform contractual obligations; as well as the risk factors described in the Company’s annual information form and other regulatory filings. The forward-looking statements contained in this press release represent our expectations as of the date hereof. Forward-looking statements are presented for the purpose of providing information about management’s current expectations and plans and allowing investors and others to obtain a better understanding of our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. The Company undertakes no obligations to update or revise such statements to reflect new circumstances or unanticipated events as they occur, unless required by applicable law.

Original story can be found at: http://www.globenewswire.com/news-release/2019/08/13/1900798/0/en/Emerald-Health-Therapeutics-Pure-Sunfarms-JV-Reaches-Q2-Sales-of-32-Million-78-EBITDA-Margin-0-65-Gram-All-in-Production-Cost-and-Third-Consecutive-Quarter-of-Profitability.html?f=22&fvtc=5&fvtv=41223728

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Indus Holdings, Inc. Reports Record Revenue in the Second Quarter 2019 Financial Results

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SALINAS, Calif., Aug. 21, 2019 (GLOBE NEWSWIRE) — Indus Holdings, Inc. (“Indus”) (CSE:INDS), a leading, vertically integrated cannabis company, today announced its financial results for the fiscal second quarter ending June 30, 2019. 
Second Quarter Financial and Business HighlightsGenerated second quarter record revenue of $9.7 million, 183% year-over-year and 51% sequential growthAdded 87 new dispensaries during the quarterAnnounced acquisitions of CBD brands Shredibles and Humble Flower Co.Entered Nevada and Oregon markets through its pending acquisition of W Vapes, a licensed multi-state manufacturer and distributor of cannabis productsCompleted the renovation of its state-of-the-art 15,000 square foot distribution center in Salinas, Calif.“I am proud of our team’s results and the successes that we demonstrated in the second quarter,” said Indus Holdings, Inc. Co-Founder and Chief Executive Officer Robert Weakley.  “During the quarter, we continued to execute on the four pillars of our strategy by investing in our portfolio of brands, expanding our distribution, entering new markets through acquisitions, and producing the highest quality products.”“I believe we are uniquely positioned in our markets,” Weakley continued.  “The infrastructure that we built over the last few years will give us the capacity to expand within the California market, and we plan to replicate our success in the Nevada and Oregon markets and beyond.  I believe we have the management team and infrastructure to execute on our plan and to position ourselves as a leader in the markets we enter with our portfolio of brands.”Fiscal Second Quarter 2019 Earnings Call Details
Indus plans to host a conference call with management today at 5:00 p.m. ET.  The call can be accessed using the following dial-in information:
U.S and Canadian Toll-free:        +1 877-407-0789
International:                                +1 201-689-8562
Please dial-in at least 15 minutes before the call to register. To be added to the Indus Holdings, Inc. email distribution list, please email ir@indusholdingco.com with Indus in the subject line.About Indus Holdings, Inc. 
Indus Holdings, Inc. (CSE:INDS) is a vertically-integrated cannabis company with advanced production capabilities, including cultivation, extraction, manufacturing, brand sales & marketing, and distribution. Founded in 2014 and based in Salinas, California, Indus offers services supporting every step of the supply chain and an extensive portfolio of award-winning brands, including House Weed, The Original Pot Co., MOON, Acme, Beboe, Dixie Elixirs & Edibles, and Orchid Essentials. Indus Distribution, a division of Indus Holdings, Inc., is a leading distributor of cannabis products, servicing an extensive portfolio of brands and licensed retailers.
Use of Non-IFRS Financial Information
To supplement the Company’s financial results presented in accordance with International Financial Reporting Standards (“IFRS”), Indus uses non-IFRS measures to understand and compare operating results across accounting periods, for financial and operational decision making, for planning and forecasting purposes and to evaluate the Company’s financial performance. These non-IFRS financial measures are adjusted EBITDA, adjusted gross profit, adjusted gross margin, and non-IFRS net earnings (loss). Management believes that these non-IFRS financial measures reflect the Company’s ongoing business in a manner that allows for meaningful comparisons and analysis of trends in the business, as they facilitate comparing financial results across accounting periods and to those of peer companies. Management also believes that these non-IFRS financial measures enable investors to evaluate the Company’s operating results and future prospects in the same manner as management. These non-IFRS financial measures may also exclude expenses and gains that may be unusual in nature, infrequent or not reflective of the Company’s ongoing operating results. Since these measures are not calculated in accordance with IFRS, they should not be considered in isolation of, or as a substitute for, our reported results as indicators of our performance, and they may not be comparable to similarly named measures from other companies. The tables below reconcile our results of operations in accordance with IFRS to the adjusted results mentioned above:
Reconciliations of Selected Non-IFRS Financial and Performance MeasuresAdjusted gross profit excludes the fair value adjustments for biological assets. Management believes this measure provides useful information as it removes fair value metrics tied to increasing stock levels (decreasing stock levels) required by IFRS.Adjusted gross margin is excludes the fair value adjustments for biological assets. Management believes this measure provides useful information as it represents the gross profit based on the Company’s cost to produce inventory sold and removes fair value metrics tied to increasing stock levels (decreasing stock levels) required by IFRS.Adjusted EBITDA is net income (loss), excluding the effects of income taxes (recovery); net interest expense; depreciation and amortization; non-cash fair adjustments on investments; unrealized foreign currency gains/losses; non-cash fair value adjustments on sale of inventory and on growth of biological assets; and other transactional and special expenses, such as acquisition costs and expenses related to our reverse takeover, which are inconsistent in amount and frequency and are not what we consider as typical of our continuing operations.  Management believes this measure provides useful information as it is a commonly used measure in the capital markets and as it is a close proxy for repeatable cash generated by operations.

Fiscal 2019 IFRS operating expenses comprised of $1.8 million in charges related to the Company’s reverse takeover and acquisition activities. Management believes this measure provides useful information as the Company incurred significant expenses in connection with its reverse takeover and acquisitions, which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations.
Forward-Looking Information and StatementsThis press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only Indus’ beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Indus’ control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved.” The forward-looking information and forward-looking statements contained herein may include, but are not limited to, the ability of the Company to successfully achieve business objectives, and expectations for other economic, business, and/or competitive factors.  There can be no assurance that such forward-looking information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such forward-looking information. This forward-looking information reflects Indus’ current beliefs and is based on information currently available to Indus and on assumptions Indus believes are reasonable.Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Indus to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; delay or failure to receive board or regulatory approvals; the actual results of future operations; operating and development costs; competition; changes in legislation or regulations affecting Indus; the timing and availability of external financing on acceptable terms; the available funds of Indus and the anticipated use of such funds; delay or inability to complete an acquisition; favorable production levels and outputs; the stability of pricing of cannabis products; the level of demand for cannabis product; the availability of third-party service providers and other inputs for Indus’ operations; and lack of qualified, skilled labor or loss of key individuals. A description of additional assumptions used to develop such forward-looking information and a description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in Indus’ disclosure documents, such as Indus’ listing statement filed on the SEDAR website at www.sedar.com. Although Indus has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Forward-looking information contained in this news release is expressly qualified by this cautionary statement.The forward-looking information contained in this news release represents the expectations of Indus as of the date of this news release and, accordingly, is subject to change after such date. However, Indus expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.  Neither the Canadian Securities Exchange nor its Regulation Service Provider has reviewed, or accepts responsibility for the adequacy or accuracy of, the content of this news release.
Investor Relations Contact
Gwyn Lauber
Indus Holdings, Inc.
ir@indusholdingco.com
Media Contact
Renata Follmann
Rossetti Public Relations
pr@indusholdingco.com

 
 

Original story can be found at: http://www.globenewswire.com/news-release/2019/08/21/1905101/0/en/Indus-Holdings-Inc-Reports-Record-Revenue-in-the-Second-Quarter-2019-Financial-Results.html?f=22&fvtc=5&fvtv=41223728

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AGCO releases results of the second cannabis lottery: 42 applicants notified to apply for a cannabis Retail Store Authorization in Ontario

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TORONTO, Aug. 21, 2019 (GLOBE NEWSWIRE) — The Alcohol and Gaming Commission of Ontario (AGCO) has released the results of the cannabis retail store lottery draw it held on August 20, 2019. The lottery provided those who met pre-qualification requirements for one of the 42 new store authorizations announced by the Government of Ontario on July 3, 2019, an opportunity to be selected to apply for one.
4,864 eligible expressions of interest were included in the lottery draw, which was overseen by a third-party fairness monitor. The AGCO has notified the following 42 selected applicants that they may now apply for a cannabis Retail Operator Licence and a Retail Store Authorization. Applicants have until August 28, 2019 to do so, at which point the AGCO will undertake its full eligibility and licensing review. The AGCO will only licence applicants and authorize stores that meet all legal and regulatory requirements.SELECTED APPLICANTS AND THEIR PROPOSED STORE LOCATIONSEast Region:GTA Region:North Region:Toronto Region:West Region:ADDITIONAL INFORMATIONAllocation lottery resultsSummary of lottery entries received by regionCannabis Retail Store Allocation Lottery RulesRegistrar’s Standards for Cannabis Retail StoresAbout the AGCO
The Alcohol and Gaming Commission of Ontario (AGCO) is an Ontario provincial regulatory agency reporting to the Ministry of the Attorney General (MAG). The agency was established on February 23, 1998 under the Alcohol, Cannabis and Gaming Regulation and Public Protection Act, 1996.
The AGCO is responsible for regulating the alcohol, lottery and gaming, horse racing and private cannabis retail sectors in accordance with the principles of honesty and integrity, and in the public interest.Media Contact:
Raymond Kahnert, Senior Advisor, Communications
(416) 326-3202, media@agco.ca 
FACT SHEETOn July 3, 2019, the Government of Ontario announced 50 new cannabis retail store authorizations would be made available. Of these 50 new stores, the AGCO will allocate up to 42 authorizations to applicants selected by lottery and eight to stores on First Nations reserves.Applicants who wished to participate in this lottery had to meet pre-qualification requirements, including confirmation from a bank, credit union, or caisse populaire that the applicant has the financial capacity to obtain $250,000 in cash or cash equivalents; confirmation from a bank, credit union, or caisse populaire that the applicant can obtain a Standby Letter of Credit in the amount of $50,000 within five business days of being notified of their selection; confirmation that the applicant has secured a suitable retail space, which will be available to them for operating a cannabis retail store no later than October 2019The required bank letters were provided to the lottery applicants by over 25 banking institutionsOnce the AGCO receives Retail Store Authorization applications from those selected in the lottery, residents of the community in which a store is proposed to be located will have an opportunity to provide written submissions if they believe the location of the store is not in the public interest, as defined by Ontario Regulation 468/18 made under the Cannabis Licence Act, 2018It is anticipated that stores will begin to open starting in October 2019, as they are readyThe AGCO has placed the applicants not selected in the lottery on Wait Lists for each Region, based on the order in which they were drawn. Applicants on the Wait List will be moved to the selected list if those ahead of them are found to be ineligible for a licence/authorization or are otherwise disqualifiedIn the future, if the Government proceeds with additional retail store allocations before moving to an open marketplace, any such allocations may be based on the results from this lottery

Original story can be found at: http://www.globenewswire.com/news-release/2019/08/21/1904954/0/en/AGCO-releases-results-of-the-second-cannabis-lottery-42-applicants-notified-to-apply-for-a-cannabis-Retail-Store-Authorization-in-Ontario.html?f=22&fvtc=5&fvtv=41223728

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Infinity Supercritical Announces SDR Model X For Continuous Feed Hemp Oil Processing

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MADISON, Wis., Aug. 21, 2019 (GLOBE NEWSWIRE) — Infinity Supercritical LLC is introducing its industrial scale hemp oil processors that use water to extract full spectrum oil in under a second. Our modular botanical oil processors can extract oil from your organic hemp, with a capacity of 10,000 lbs to 100,000 lbs per day. The continuous feed process is the only in the industry that uses water as the solvent, to produce a eco-extracted oil, that can be labeled with organic and green branding.
Less than 10 percent of the 2019 hemp crop will be processed at fall harvest from the lack of botanical extractors. Based on the deluge of calls we get from farmers, wanna-be processors, and equity groups, there will be a huge bottleneck at this years fall hemp harvest.Hemp became Federally legal in 2019, which had farmers scrambling to get crops in the ground, many at the last minute in late spring. The lack of coordinated state regulation nationwide has resulted in a patch-work of states under cultivation, some more than ten-fold increase in acreage planted from last year.While many smaller fly-by-night processors turn to ethanol extraction. If not done properly, it produces a poor quality full spectrum hemp CBD oil. A full spectrum oil provides the most benefits to the body. Many operators choose to use activated carbon to filter out the green bitter tasting chlorophyll, which unfortunately also filters out the CBDs. The consumer may not know the difference when purchasing full spectrum oil, aside from being turned off from lackluster results.The result? Much of the hemp crop will go unprocessed, and some will go into long term storage and degrade.Infinity Supercritical LLC offers innovative one-touch processing technology using water as the solvent, and a visionary future for clean and quality full spectrum hemp CBD oil extraction.  Please visit https://sonicextractor.com for more information.G. Giese | CEO | Infinity Supercritical LLC | greg@infinitysupercritical.com

Original story can be found at: http://www.globenewswire.com/news-release/2019/08/21/1904928/0/en/Infinity-Supercritical-Announces-SDR-Model-X-For-Continuous-Feed-Hemp-Oil-Processing.html?f=22&fvtc=5&fvtv=41223728

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