Village Farms responds to public disclosures by Emerald Health Therapeutics
Village Farms International responds to inaccurate and misleading public disclosure by Emerald Health Therapeutics and provides an update in respect of its majority ownership interest in Pure Sunfarms, as described in more detail in Village Farms' press release dated November 19. As a result of Emerald's failure to pay $5.94M to Pure Sunfarms on November 1, Village Farms made an additional equity contribution and increased its ownership in Pure Sunfarms on November 19 thereby becoming the majority owner of Pure Sunfarms. Pure Sunfarms' management has now confirmed that the VF Additional Equity Contribution has been properly credited to Village Farms' share capital pursuant to the terms of the Pure Sunfarms shareholders agreement. Pure Sunfarms management has further indicated to Village Farms that its understanding of the relevant legal agreements and events that have occurred to date is consistent in all material respects with the Prior VF Press Release. With respect to the 5,940,000 common shares of Pure Sunfarms that were placed in escrow pending payment by Emerald of an equity contribution to Pure Sunfarms, Village Farms continues to seek the cancellation of such shares as a result of the Emerald Payment Default. Such share cancellation is expressly provided for in the applicable legal agreements. Following Emerald's delivery of a dispute notice relating to the cancellation of the escrowed shares on November 19 Village Farms notified Emerald that it required the matter to be submitted to arbitration in accordance with the Shareholders Agreement. Assuming the arbitrator confirms that the cancellation of these shares should occur, such share cancellations will reduce Emerald's equity ownership in Pure Sunfarms effective as of November 19.