After months of a continued dispute between the two owners of a cannabis producer in British Columbia (BC), the firms have finally settled on an agreement.

Pure Sunfarms is a Canadian licensed producer (LP) co-managed by Village Farms International (TSX:VFF,NASDAQ:VFF) and Emerald Health Therapeutics (TSXV:EMH,OTCQX:EMHTF). The two public firms entered into a disagreement over a pending invoice payment addressed to Emerald as part of a previously agreed deal between the joint venture (JV) and one of its parent companies.


On Monday (March 3), Emerald and Village Farms put an end to the dispute with a variety of agreements, including a transfer of ownership stake, which will lead to an increase in ownership of Pure Sunfarms by Village Farms. Now the ownership breakdown of Pure Sunfarms will be 57.4 percent and 42.6 percent for VFF and Emerald, respectively.

This rebalancing in the ownership stakes from both firms will settle an extension of the original disagreement since back in November, when Emerald disputed Village Farms telling shareholders it now holds a majority stake in the LP.

The two companies saw opposite reactions from the capital markets. While Emerald quickly rose following the start of the trading session, Village Farms noticed a loss in both New York and Toronto. As of 11:14: a.m. EST, Village Farms was down 5.29 percent in both exchanges, but Emerald hit a nearly 30 percent uptick, boosting its share price to C$0.24.

A total of 5.9 million shares of Pure Sunfarms, held in escrow due to the missing payment worth C$5.9 million from Emerald, will be canceled.

Emerald will also no longer be held responsible for the supply agreement for the purchase of 40 percent worth of Pure Sunfarms’ aggregate product.

In a statement, Emerald President and CEO Emerald Riaz Bandali said this new deal resolves all disputes present amid the partners and would allow the focus to be back on Pure Sunfarms’ operations.

Besides all the other resolutions included in the new settlement, Village Farms added a contribution worth C$8 million to its JV. The company will be able to also recognize sales worth C$8.1 million from Pure Sunfarms as part of its Q1 2020 period.

The new agreement between Village Farms and Emerald is set to close by Friday (March 6).

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Not for Distribution to United States Newswire Services or for Dissemination in the United States

Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it is commencing a best efforts overnight marketed offering (the “Offering”) of subordinate voting shares (the “Offered Securities”) of the Company.

Keep reading... Show less

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES /

Numinus Wellness Inc. (” Numinus ” or the ” Company “) (TSXV: NUMI), a company creating an ecosystem of health solutions centered around developing and supporting the safe, evidence-based, accessible use of psychedelic-assisted psychotherapies, announces that it has granted 1,975,000 incentive stock options (the ” Options “) to directors, officers and employees of the Company, which are subject to regulatory approval.

Keep reading... Show less

Great North will be exclusive representative for Aurora’s leading portfolio of Canadian brands

NYSE | TSX: ACB

Keep reading... Show less

The Company will now have meaningful operations in all 7 cannabis markets that fall within the top 10 most populated states in the U.S.

Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco Labs” or “the Company”), one of the largest vertically integrated, multistate cannabis operators in the United States, and Bluma Wellness Inc. (CSE: BWEL.U) (OTCQX:BMWLF) (“Bluma”), a vertically integrated operator in Florida, announced today they have entered into a definitive agreement (the “Agreement”) pursuant to which Cresco Labs will acquire all of the issued and outstanding shares of Bluma (“Bluma Shares”) in an all-share transaction that values Bluma at an equity value of US$213 million (the “Transaction”).

Keep reading... Show less

Reports Net Revenue of $160.5 Million , an Increase of 33% from Prior Year Quarter
Adjusted EBITDA of $12.6 Million Marks Seventh Consecutive Quarter of Increasing Positive Adjusted EBITDA
Cash Cost Per Gram Decreases for the Fifth Consecutive Quarter to $0.79
Completed Accretive, Strategic Acquisition of SweetWater

 Aphria Inc. (” Aphria ,” ” we ,” or the ” Company “) (TSX: APHA) (Nasdaq: APHA), a leading global cannabis-lifestyle consumer packaged goods company inspiring and empowering the worldwide community to live their very best life, today reported its financial results for the second quarter and six months ended November 30, 2020 . All amounts are expressed in Canadian dollars, unless otherwise noted and except for per gram, kilogram, kilogram equivalents, and per share amounts.

Keep reading... Show less