Village Farms Resolves Dispute With Emerald Health, Takes Control of Joint Venture
Village Farms International (NASDAQ: VFF) owned 53.5% of cannabis grower Pure Sunfarms as of Dec. 31, according to a press release issued on Tuesday. Previously, ownership of the joint venture had been a 50-50 split with Emerald Health Therapeutics (OTC: EMHTF). However, when Emerald failed to make an equity payment by Nov. 19, a dispute arose as to whether the large greenhouse grower could use that as an opportunity to contribute additional funds to Pure Sunfarms and take a majority stake in the pot producer.
Emerald asserted that it still had a 50% stake in Pure Sunfarms. And in January, it looked as if the issue was closed after Village Farms said that it would opt to receive a refund for the additional contribution that it had made in November.
But on Tuesday, Village Farms announced that the dispute with Emerald was now completely resolved in a different way, and that its stake in Pure Sunfarms would be increasing. Village Farms will contribute another 8 million Canadian dollars to Pure Sunfarms in 2020, boosting its stake in the cannabis grower to 57.4%.
Source Fool.com
