Village Farms, a Canadian greenhouse enterprise, has advanced its plans of acquiring Pure Sunfarms Corp, a company founded as a joint venture with the Canadian medical cannabis firm, Emerald Health Therapeutics.
Village Farms, one of the leading and oldest greenhouse produce operators in North America, has been leveraging its vast low-cost, large-scale agricultural and business expertise in the cannabis and CBD industry.
Along with Emerald Health, the company started Pure Sunfarms as a joint project for the production of CBD and marijuana in British Columbia. Pure Sunfarms, a low-cost greenhouse operator, became one of the single largest cannabis businesses globally and a best-selling brand.
On Oct. 29, Village Farms announced the success of a vote by Emerald shareholders, which favored the sale of Emerald’s Pure Sunfarms’ shares. Emerald holds almost half of Pure Sunfarms, with approximately 41.3% of the total shares.
The two founding companies were previously engaged in a legal battle when an agreement between them fell apart, creating a dispute about which company owned more of the joint business. Village Farms and Emerald Health had formerly agreed that they would own half of Pure Sunfarms each, with the former contributing space and equipment and the latter providing the finances.
In March, the two companies settled the legal dispute, with Village Farms revealing that it owns 57.4% of Pure Sunfarms Corp., as per the settlement.
Announcing the deal’s success at Emerald’s annual special meeting, Village Farms revealed that Emerald Health’s shareholders agreed to the selling of over 36 million shares of the joint business to Village Farms. The deal gives Village Farms 100% of Pure Sunfarms common shares.
Pure Sunfarms is a producer of CBD and marijuana products for the Canadian market. Village Farms produces hemp-based CBD products for the U.S market.