September 18, 2017
Two Torys lawyers have spoken with Lexpert detailing the firm’s work for Village Farms International in the recent joint venture with medicinal marijuana company Emerald Health that ultimately established Pure SunFarms Corp.
In the Q&A-style article, partners discussed some of the challenges they faced throughout the deal and shared some of their key learnings from the process.
Michael was asked about the demands of working under tight timeframes and agreed that aspect was one of the biggest factors in the process.
“I would say the biggest challenge in executing this deal was the tight timing. The cannabis market is quickly evolving and many cannabis industry participants are moving very quickly to best position themselves for success. In order to capitalize on the opening of the Canadian recreational market, it was critical to both Emerald and Village Farms to quickly locate the right partner and to reach a mutually beneficial business deal as soon as possible,” he told Lexpert.
Sabrina told Lexpert that understanding both parties’ objectives was one of her biggest takeaways from the process.
“From a transactional lawyer’s perspective, in order to properly structure a cannabis-related joint venture, it is especially important to understand both your client’s and its joint venture partner’s objectives, their respective views on how the cannabis market will evolve and to be creative in attempting to resolve differences between the parties. Until there is greater understanding and certainty in the cannabis market, no two transactions are likely to be similar,” she said.
You can read Sabrina and Michael’s full comments on the joint venture by visiting the Lexpert website.
Learn more about our work on the joint venture here.
Get more insights from our team about the fast-evolving cannabis industry here.