Source: Emerald Health Therapeutics Inc.
VICTORIA, British Columbia, April 30, 2018 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV:EMH) (OTCQX:EMHTF) (Frankfurt:TBD) has entered into a supply agreement with Pure Sunfarms, its 50/50 joint venture with Village Farms International Inc. (“Village Farms”) (TSX:VFF) (OTCQX:VFFIF). In this agreement, Emerald will purchase 40% of Pure Sunfarms’ production in 2018 and 2019, or approximately 21,000 to 24,000 kilograms using current projected production targets, at a pre-determined price per gram.
Pure Sunfarms has substantially completed conversion of the first 250,000 ft2 of its existing 1.1 million ft2 greenhouse in Delta, BC (“Delta 3 greenhouse”) to cannabis production, with the balance of the 1.1 million ft2 expected to be completed by year end. The Company’s design for the Delta 3 greenhouse is based on decades of large-scale, low-cost agricultural production experience and extensive cannabis expertise, resulting in a state-of-the-art facility with 17 individual grow rooms optimized for year-round harvesting (more than 85 harvests annually) and low-cost production. Senior growing, financial, and operational personnel, including the experienced cultivation team transferred from Village Farms, are in place for production ramp-up. Pure Sunfarms is targeting production of dried cannabis of approximately 7,000 to 8,000 kilograms in 2018, 46,000 to 52,000 kilograms in 2019, and more than 75,000 kilograms in 2020 when the facility reaches full production. Health Canada issued a cultivation license for the Delta 3 greenhouse in March.
Pure Sunfarms’ objective is to be a vertically integrated supplier and in addition to production ramp-up is focused on senior management hires, downstream product development, and development of distribution and marketing strategies. With its options on two adjacent operational greenhouse facilities of 1.1 million ft2 and 2.6 million ft2, Pure Sunfarms’ potential production footprint of 4.8 million ft2 in one contiguous complex would be the largest cannabis cultivation site in Canada and the world.
“Pure Sunfarms’ agreement to supply Emerald with a portion of Pure Sunfarms’ projected production provides a strong initial revenue stream for our shared joint venture, while allowing flexibility to capitalize on other sales opportunities as we continue discussions with multiple parties including provincial governments and other licensed producers,” said Michael DeGiglio, Director, Pure Sunfarms, and CEO, Village Farms. “We are confident Pure Sunfarms’ unmatched experience in large-scale, low-cost agricultural production and fulfilling regular, large-volume supply commitments at consistent quality, alongside extensive cannabis expertise and significant scale, will place it in the top tier of Canadian and international cannabis growers and downstream product developers.”
“As a co-owner of Pure Sunfarms, we are pleased to see the maturing of Pure Sunfarms’ business plan and the rapid conversion of its impressive production facility. We look forward to the significant sales we expect Pure Sunfarms to generate and supporting Pure Sunfarms in the distribution of its production,” said Avtar Dhillon, MD, Executive Chairman of Emerald. “At the same time, Emerald is pleased to secure a significant source of cannabis as we execute our plan to be an important supplier of high-quality cannabis in the anticipated legalized adult-use cannabis market in Canada and develop value-added products supported by unique intellectual property.”
About Village Farms
Village Farms is one of the largest producers, marketers, and distributors of premium-quality, greenhouse-grown fruits and vegetables in North America. The food our farmers grow, along with other greenhouse farmers under exclusive arrangements are all grown in environmentally friendly, soil-less, glass greenhouses. The Village Farms® brand of fruits and vegetables is marketed and distributed primarily to local retail grocers and dedicated fresh food distributors throughout the United States and Canada. Since its inception, Village Farms has been guided by sustainability principles that enable us to grow food 365 days a year that not only feeds the growing population but is healthier for people and the planet. Village Farms is Good for the Earth® and good for you.
About Emerald Health Therapeutics, Inc.
Emerald Health Therapeutics (TSXV:EMH) (OTCQX:EMHTF) (Frankfurt:TBD) is a Licensed Producer under Canada’s Access to Cannabis for Medical Purposes Regulations and produces and sells dried cannabis and cannabis oil for medical purposes. It is building a 500,000 square foot greenhouse in Metro Vancouver to serve the anticipated legal Canadian adult-use cannabis market starting in 2018. Emerald also owns 50% of Pure Sunfarms, a joint venture with Village Farms International, Inc., that is converting an existing 1.1 million square foot greenhouse in Delta, BC to grow cannabis. Emerald’s team is highly experienced in life sciences, product development and large-scale agribusiness. Emerald Health Therapeutics is part of the Emerald Health group, which includes multiple companies focused on developing cannabis and cannabinoid products with potential wellness and medical benefits.
Please visit www.emeraldhealth.ca for more information or contact:
Rob Hill, Chief Financial Officer
(800) 757 3536 Ext. #5
Ray Lagace, Investor Relations Manager
(800) 757 3536 Ext. #5
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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 completion of the joint venture; establishing a brand; sales of non-cannabis products; development of sales channels; expansion of permitted sales of cannabis; leveraging of distribution channels; development of new products; the benefits and effects of certain products.
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, failure to obtain regulatory approvals; failure to obtain necessary financing; results of production and sale activities; results of scientific research; regulatory changes; availability of products; changes in prices and costs; demand for products; as well as the risk factors described in the Company’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. The Company undertakes no obligations to update or revise such statements to reflect new circumstances or unanticipated events as they occur, unless required by applicable law.