A major transaction was recently completed between a huge East Ladner cannabis greenhouse operation and a former partner company.
Emerald Health Therapeutics Inc. this week announced it received from Village Farms International Inc. $19.9 million, plus $621,534 in interest, representing full repayment of a promissory note issued by Village Farms to Emerald as part of its purchase of Emerald's interest in a joint venture called Pure Sunfarms, which closed last November.
It was the final payment due.
“After previously eliminating all third-party debt, and substantially reducing our accounts payable and operational expenses, this capital adds to our cash and working capital position and will serve as a further catalyst that enables us to focus on our refined science-driven strategy, proactive growth plan and operational productivity,” said Riaz Bandali, president and CEO of Emerald, in a press release.
Prior to the legalization of cannabis three years ago, Village Farms partnered Emerald Health to form the Pure Sunfarms venture.
Pure Sunfarms is now a wholly-owned subsidiary of Village Farms.
Pure Sunfarms has 1.1 million square feet in its greenhouse operation, having the capacity to produce 75,000 kilograms of dried flower annually for the Canadian recreational market.
Current supply agreements in place include the Ontario Cannabis Retail Corporation, the BC Liquor Distribution Branch, Alberta Gaming, Liquor and Cannabis, the Saskatchewan Liquor and Gaming Authority and, most recently, the Manitoba Liquor and Lotteries Corporation.
The operation also provides cannabis to other licensed producers in Canada.
Pure Sunfarms is planning to convert a second 1.1 million square foot Delta greenhouse for cannabis production, which is expected to double the annual output capacity to 150,000 kilograms.