Emerald Health Therapeutics Inc.
We acted as counsel to Emerald Health Therapeutics Inc., in connection with the formation of a joint venture with Village Farms International Inc. for large-scale, high-quality, low-cost cannabis production. Village Farms initially contributed to the joint venture a 1.1 million-square foot (25-acre) greenhouse facility in Delta, British Columbia which will be converted to ACMPR (Access to Cannabis for Medical Purposes Regulations)-compliant production and, if permitted by applicable law, production for the non-therapeutic adult-use market.
Emerald will initially contribute an aggregate of C$20 million in cash (of which C$2 million was advanced at closing and the remaining C$18 million will be advanced in tranches upon satisfaction of certain milestones to be determined by the board of directors of the joint venture) to fund conversion of the greenhouse and each party will have a 50% ownership stake in the joint venture.
The joint venture also entered into an agreement with Village Farms for options to lease or purchase from Village Farms a second 1.1 million square foot greenhouse (25 acre) and a 2.6 million square foot (60 acre) greenhouse, both located adjacent to the acquired greenhouse. Combined, these three greenhouse assets could provide the joint venture with a total potential aggregate production capacity of approximately 4.8 million square feet (110 acres).
Emerald is a TSX Venture Exchange listed (TSXV: EMH) Licensed Producer under the ACMPR, capable of cultivating and selling both dried medical cannabis flower and medical cannabis oils in Canada.