Emerald Health Therapeutics’ Joint Venture Pure Sunfarms Begins Shipping Branded Cannabis Product to British Columbia Provincial Wholesaler
Pure Sunfarms began shipping product to the
“Pure Sunfarms has taken another important step shipping its first branded cannabis product for the
Pure Sunfarms continues to advance discussions with other provincial distributors for potential supply agreements to further expand its presence in the Canadian cannabis market.
Emerald has also entered into an amendment agreement ("Amendment Agreement") to amend the terms of the hemp supply agreement that it had entered into with
Emerald has also entered into a sublease agreement ("Sublease Agreement") and a cultivation agreement ("Cultivation Agreement") with EHS. Pursuant to the Sublease Agreement, Emerald has agreed to sublease 12 acres of land in Metro Vancouver ("Subleased Land") to EHS for which EHS agreed to pay Emerald rent equal to the amount that Emerald pays to the head-landlord for the Subleased Land. Emerald and EHS have also entered into the Cultivation Agreement, pursuant to which EHS granted Emerald the right to cultivate cannabis, for the sole benefit of Emerald, on the Subleased Land. In exchange for this right, Emerald agreed to waive the amounts payable by EHS under the Sublease Agreement. Through these agreements, Emerald is able to obtain all the benefit from the licence
EHS is a control person of Emerald. Accordingly, EHS is a related party of Emerald for the purposes of National Instrument 61-101 — Protection of Minority Security Holders in Special Transactions ("NI 61-101") — and the transactions discussed above are related party transactions. Each of the transactions described above is exempt from the valuation and minority approval requirements of NI 61-101 pursuant to the exemptions in Sections 5.5(a) and 5.7(a) of NI 61-101.
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Emerald Investor Relations
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Cautionary Note Regarding Forward-Looking Statements: Certain statements made in this press release that are not historical facts are forward-looking statements and are subject to important risks, uncertainties and assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking statements. Such statements include obtaining required regulatory approvals; production and processing capacity of various facilities; expansion of facilities; obtaining additional cultivation licenses and other permits; production at various facilities; receipt of hemp deliveries; the shipment of cannabis products by Pure Sunfarms; the distribution of cannabis products by BCLDB; the availability of Pure Sunfarms' branded cannabis products; the entering into of supply agreements with other provincial distributors; scale up of reliable, quality low-cost cannabis; and anticipated production costs.
We cannot guarantee that any forward-looking statement will materialize, and readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements involve risks and uncertainties related to, among other things, changes of law and regulations; changes of government; failure to obtain regulatory approvals or permits; failure to obtain necessary financing; results of production and sale activities; results of scientific research; regulatory changes; changes in prices and costs of inputs; demand for labour; demand for products; failure of counter-parties to perform contractual obligations; as well as the risk factors described in Emerald's annual information form and other regulatory filings. The forward-looking statements contained in this press release represent our expectations as of the date hereof. Forward-looking statements are presented for the purpose of providing information about management's current expectations and plans and allowing investors and others to obtain a better understanding of our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. Emerald undertakes no obligations to update or revise such statements to reflect new circumstances or unanticipated events as they occur, unless required by applicable law.
Source: Emerald Health Therapeutics Inc.