VANCOUVER, B.C. – Village Farms International, Inc. (“Village Farms” or the “Company”) (NASDAQ: VFF) (TSX: VFF) right now introduced it has accomplished the acquisition from Emerald Health Therapeutics, Inc. (“Emerald”) of 36,958,500 widespread shares of Pure Sunfarms Corp. (“Pure Sunfarms”) owned by Emerald, representing roughly 41.3% of the issued and excellent widespread shares of Pure Sunfarms (the “Pure Sunfarms Transaction”). With the completion of the Pure Sunfarms Transaction, Village Farms now owns 100% of the widespread shares of Pure Sunfarms. The acquisition of the Pure Sunfarms shares shall be instantly accretive to Village Farms’ internet earnings.
“Village Farms conceived of a joint venture to launch its Canadian cannabis business, and the result, Pure Sunfarms, is now one of the leading Canadian cannabis companies. With this transaction our shareholders will now fully benefit from our initiative,” mentioned Michael DeGiglio, CEO, Village Farms. “Pure Sunfarms is well positioned for long-term growth as one of what we believe will be just a small number of major suppliers to the Canadian cannabis market. Importantly, as part of the Village Farms organization Pure Sunfarms can now pursue additional opportunities to further leverage its success to date and increase its earnings potential. I am pleased to welcome the outstanding management team and employees of Pure Sunfarms to our organization, and welcome back so many Village Farms’ personnel who transitioned to our cannabis venture in the early days to ensure that Pure Sunfarms would benefit fully from Village Farms’ decades of experience and site-specific operational expertise. Pure Sunfarms’ CEO, Mandesh Dosanjh, and his entire team have done exceptional work in bringing Village Farms’ vision to reality, and we look forward to their continued contribution to its success as part of Village Farms going forward.”
“The acquisition of the entirety of Pure Sunfarms is a defining moment for Village Farms, furthering our transformation to a vertically integrated, plant-based consumer packaged goods company. It allows us to fully leverage the invaluable cannabis expertise Village Farms has gained in combination with the organizational strength underlying the Village Farms produce business to pursue high-growth opportunities in emerging legal cannabis and CBD markets in the United States and targeted markets internationally. We will do so with the same thoughtfulness, prudence, strategic decision making and focus on near-term profitability and long-term return on invested capital that has been fundamental to the success of our investment in Pure Sunfarms.”
“We especially look forward to the potential for U.S. regulatory changes that would permit us to pursue our U.S. cannabis aspirations. With one of the largest greenhouse footprints in the U.S., located in one of the best regions for growing in the country, alongside our cannabis success in Canada, we believe there is no company better positioned for long-term success in the U.S. cannabis industry. We are ready to move quickly and aggressively as soon as the regulatory environment permits.”
Upon closing of the Pure Sunfarms Transaction, Pure Sunfarms shall be absolutely consolidated in Village Farms’ monetary outcomes. Village Farms will report its third quarter monetary outcomes and the third quarter monetary outcomes of Pure Sunfarms on November 13, 2020. Village Farms’ monetary outcomes for the three and 9 months ended September 30, 2020 will proceed to replicate Village Farms’ 58.7% possession of Pure Sunfarms as an funding in a three way partnership.
Within 75 days of the shut, the Company is required to file with the U.S. Securities and Exchange Commission, on Form 8-Okay/A, historic monetary statements for Pure Sunfarms, along with unaudited professional forma mixed monetary statements of the Company as if the Pure Sunfarms Transaction had occurred on January 1, 2020.
The whole buy worth for the Emerald shares of C$79.9 million (US$60.zero million) was glad by way of a C$60.zero million (US$45.zero million) money cost and a C$19.9 million (US$14.9 million) promissory be aware due six months from the deadline of the Pure Sunfarms Transaction.
Concurrent with the shut of the Pure Sunfarms Transaction, the prevailing Pure Sunfarms Shareholders Agreement between Village Farms and Emerald has terminated, as has the Delta 1 – Option to Lease Agreement.
Origin Merchant Partners acted as advisors to Village Farms for the Pure Sunfarms Transaction.
About Village Farms International, Inc.
Village Farms is one of the most important and longest-operating greenhouse growers in North America, and is leveraging its a long time of expertise as a large-scale, low-cost intensive agriculture and vertically built-in produce provider to pursue high-value, high-growth plant- Consumer Packaged Goods alternatives in hashish and CBD in North America and chosen markets internationally.
In Canada, Village Farms’ wholly owned subsidiary, British-Columbia-based Pure Sunfarms, relies one of the only largest hashish operations on the planet, the lowest-cost greenhouse producer, one of the best-selling manufacturers, and has generated profitability for six consecutive quarters.
In the U.S., topic to compliance with all relevant U.S. federal and state legal guidelines, Village Farms is pursuing a technique to turn into a number one developer and provider of branded and white-labeled CBD merchandise focusing on “big box” and different main retailers and client packaged items firms, and with one the most important greenhouse operations in nation, is nicely positioned for the potential federal legalization of high-THC hashish.
Internationally, Village Farms is strategically focusing on chosen, nascent, authorized hashish and CBD alternatives with vital long-term potential, with an preliminary deal with the Asia-Pacific area by way of its funding in Australia-based Altum International.