Village Farms and Emerald announced that their 50/50 joint venture for large-scale, low-cost, high-quality cannabis production, Pure Sunfarms, has received its cannabis sales license from Health Canada. Pure Sunfarms is now permitted to immediately begin selling product from its expanding inventory of high-quality dried cannabis, including to Emerald Health Therapeutics, under their previously announced supply agreement, as well as to address significant demand from other licensed producers. This sales license also positions Pure Sunfarms to secure supply agreements with provincial government distributors for the imminent legal adult-use marketplace.
"Pure Sunfarms continues to achieve its milestones on or ahead of schedule, and has transformed the Delta 3 facility from growing and selling tomatoes to growing and selling cannabis in just seven months," said Michael DeGiglio, CEO, Village Farms. "Pure Sunfarms' near-term objective is to maximize the profitability of its expanding production capacity during what is expected to be an initial period of short supply when adult cannabis use becomes legal in Canada on October 17, 2018. Pure Sunfarms will become a vertically integrated supplier and, with this sales license in place, will aggressively move forward with its product development and branding strategies."
"Pure Sunfarms is moving at remarkable speed to become a significant cannabis supplier and, with our high operational quality standards, we achieved a very rapid turnaround on this license. We greatly appreciate Health Canada's timely responses to all of our submissions," said Chris Wagner, CEO, Emerald Health Therapeutics. "With access to established wholesale and provincial agreements and the prospect of similar additional agreements in the near-term, Pure Sunfarms is well prepared for a rapid sales ramp-up in the coming quarters. This will drive value for both Village Farms and Emerald, as joint venture partners."