Ms. Jenn Hepburn of Emerald Health reports
EMERALD SHAREHOLDERS VOTE IN FAVOUR OF SALE OF PURE SUNFARMS
Emerald Health Therapeutics Inc.'s shareholders have voted at its annual general and special meeting today to approve the sale of the company's 41.3-per-cent interest in Pure Sunfarms Corp. (PSF) to Village Farms International Inc.
As previously announced by the company, on Sept. 8, 2020, it entered into a share purchase agreement with Village Farms in respect of the sale of the company's interest in PSF, a joint venture that was established between the company and Village Farms in 2017. Pursuant to the share purchase agreement, Village Farms has agreed to purchase 36,958,500 common shares in the authorized share structure of PSF, representing all of the remaining shares of PSF not held by Village Farms, for an aggregate purchase price of $79.9-million.
The transaction was approved by 98.65 per cent of votes cast by the company's shareholders at the meeting.
The company will now seek final approval from the TSX Venture Exchange to approve the transaction. The transaction is expected to close in the coming days, subject to applicable regulatory approvals (including TSX-V approval) and the satisfaction of other customary conditions.
"We appreciate our shareholders' conviction in the direction we are moving with Emerald. Upon closing this transaction, which we expect very rapidly, we will work to swiftly transform our balance sheet to zero debt with a very healthy remaining cash position," said Riaz Bandali, chief executive officer of the company. "We will also take steps to immediately continue to enhance our focus on science-based innovation for the development of novel, high-margin and differentiated products, as well as to advance our strategy planning to define the other new business initiatives we wish to undertake organically and/or through very prudent acquisition, and to set the wheels in motion to implement this strategy. We look forward to updating investors as our plans progress.
"We are very proud of our foundational role in the creation and build up of the Pure Sunfarms business and we wish Mandesh and the PSF team and Mike and the Village Farms team continued success. We are also pleased about the tremendous progress we have made in reshaping Emerald over the last year and are excited about the additional transformational growth opportunities that we can now actively pursue."
In addition to approving the transaction, shareholders also approved the following matters at the meeting: (i) the re-election of Dr. Avtar Dhillon, Jim Heppell, Punit Dhillon and Bob Sukhwinder Rai as directors of the company; (ii) the appointment of Deloitte LLP as auditor of the company; and (iii) the company's omnibus incentive plan.
About Emerald Health Therapeutics Inc.
Emerald is committed to creating new consumer experiences with distinct recreational, medical and wellness-oriented cannabis and non-cannabis products, with an emphasis on life science-based innovation and product excellence.
We seek Safe Harbor.
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