Village Farms International to acquire all outstanding Pure Sunfarms' shares – will own 100% of Canada's premier cannabis supplier
On September 8, 2020, Village Farms International, Inc. ("Village Farms") announced it entered into a definitive purchase and sale agreement with Emerald Health Therapeutics, Inc. ("Emerald") to acquire 36,958,500 common shares of Pure Sunfarms Corp. ("Pure Sunfarms") owned by Emerald, representing approximately 41.3% of the issued and outstanding common shares of Pure Sunfarms. Upon completion of the transaction, Village Farms will own 100% of the common shares of Pure Sunfarms. The total purchase price of US$61.0 million will be satisfied through a US$45.8 million cash payment and a US$15.2 million promissory note due six months from the closing date of the transaction.
The transaction, which is subject to customary closing conditions, is expected to be completed in late October 2020. Upon completion, the existing Pure Sunfarms shareholders agreement between Village Farms and Emerald will terminate, Pure Sunfarms' management and employees will become part of the Village Farms organization and Village Farms will immediately begin fully consolidating the financial results of Pure Sunfarms.
Village Farms is one of the largest and longest-operating greenhouse growers in North America, and is leveraging its decades of experience as a large-scale, low-cost intensive agriculture and vertically integrated produce supplier to pursue high-value, high-growth plant-based Consumer Packaged Goods opportunities in cannabis and CBD in North America and select markets internationally.
Pure Sunfarms is one of the single largest cannabis operations in the world. In the year since launching its retail branded products, Pure Sunfarms has been the top-selling brand of dried flower products with the Ontario Cannabis Store ("OCS"), the provincial wholesaler and only online retailer in Canada's most populous province.
Further information can be found on Canada Newswire's website here.