Emerald Health Therapeutics 50%-owned joint venture for large-scale, low-cost, high-quality cannabis production, Pure Sunfarms has begun shipping branded, packaged dried cannabis products to the British Columbia Liquor Distribution Branch, which acts as the provincial wholesaler of non-medical cannabis, supplying licensed private retailers and the government-run online store and stand-alone BC Cannabis Stores. Pure Sunfarms expects its first products to soon be available to retail customers in British Columbia.
Pure Sunfarms began shipping product to the Ontario provincial wholesaler, the Ontario Cannabis Retail Corporation, in September. Combined, Ontario and British Columbia comprise more than half of Canada’s population.
“Pure Sunfarms has taken another important step shipping its first branded cannabis product for the British Columbia market,” said Riaz Bandali, CEO of Emerald. “As PSF’s quality products become available directly to Canadian consumers, and as the PSF brand continues to penetrate the Canadian recreational cannabis retail market, we look forward to seeing continued growth in sales and shareholder value.”
"Pure Sunfarms continues to advance discussions with other provincial distributors for potential supply agreements to further expand its presence in the Canadian cannabis market."
Emerald has also entered into an amendment agreement to amend the terms of the hemp supply agreement that it had entered into with Emerald Health Hemp Inc. ("EHH"). Pursuant to the Amendment Agreement, the parties have agreed to, among other things, amend the purchase price payable by Emerald to EHH such that Emerald will only pay EHH the reasonable and documented costs incurred by EHH in exchange for hemp products. EHH is a wholly-owned subsidiary of Emerald Health Sciences Inc. ("EHS"), which is a control person of Emerald.
Emerald has also entered into a sublease agreement and a cultivation agreement with EHS. Pursuant to the Sublease Agreement, Emerald has agreed to sublease 12 acres of land in Metro Vancouver to EHS for which EHS agreed to pay Emerald rent equal to the amount that Emerald pays to the head-landlord for the Subleased Land. Emerald and EHS have also entered into the Cultivation Agreement, pursuant to which EHS granted Emerald the right to cultivate cannabis, for the sole benefit of Emerald, on the Subleased Land. In exchange for this right, Emerald agreed to waive the amounts payable by EHS under the Sublease Agreement. Through these agreements, Emerald is able to obtain all the benefits from the licence Health Canada has granted to EHS to cultivate cannabis on the Subleased Land.
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