Emerald Health Therapeutics has responded to the public disclosure made by Village Farms International yesterday in connection with their joint venture, Pure Sunfarms ("PSF").
"Emerald reiterates the disclosure in its November 20, 2019, news release and confirms that, factually, Emerald and Village Farms each continue to own 50% of PSF," the team with the company explains.
"As set out in Village Farms’ own news release, no additional shares of PSF have been issued to Village Farms and none of Emerald’s escrowed shares in PSF have been cancelled. The outcome of both of these issues will eventually be settled through litigation, arbitration or negotiation."
"Emerald confirms that it did not pay $5.94 million to PSF in connection with the Delta 2 Option Agreement as it had previously notified PSF that it was setting off its $5.94 million payment against the $13 million PSF currently owes Emerald under a demand Promissory Note. As a result of this set-off, Emerald has completed its $5.94 million payment to PSF and, in turn, Village Farms has no right to attempt to make any additional equity contributions to PSF."
"Emerald confirms that Village Farms has provided Emerald with notice of arbitration with respect to Emerald’s escrowed shares in PSF. Those arbitration proceedings have yet to be initiated."
Alberta supply agreement
In the meantime, Pure Sunfarms has entered into a supply agreement with the Alberta Gaming, Liquor & Cannabis Commission ("AGLC") to supply recreational adult-use cannabis products to Alberta's licensed private retailers, including Alberta's only legal online source for recreational cannabis, AlbertaCannabis.org.
"Today's supply agreement with Alberta presents a strong opportunity for Pure Sunfarms to expand our reach across Canada," said Mandesh Dosanjh, President and CEO, Pure Sunfarms. "The province has led the way since legalization, and we believe that Albertans will welcome our product with the same enthusiasm we've seen to date in Ontario and B.C. Our high-quality cannabis – hand selected for flavour, potency and consistency – at an affordable price has been in high demand since our branded retail launch in September."
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Emerald Health Therapeutics