Business
Village Farms Confirms Rejection of Emerald's Invalid Set-Off Claim and Invalid Shareholder Loan Repayment Demand
Village Farms' Majority Ownership Interest Confirmed by Pure SunfarmsAdditional Emerald Equity Contribution of $940,000 Due on December 2, 2019Conversion of
About this update from Village Farms International, Inc.
[{"type":"text","content":"Village Farms' Majority Ownership Interest Confirmed by Pure SunfarmsAdditional Emerald Equity Contribution of $940,000 Due on December 2, 2019Conversion of Delta 2 Greenhouse Facility Remains on Schedule VANCOUVER, Nov. 29, 2019 /PRNewswire/ - Village Farms International, Inc. (\"Village Farms\") (TSX:VFF; Nasdaq:VFF) today responded to the ongoing, inaccurate and misleading public disclosure by Emerald Health Therapeutics, Inc. (\"Emerald\") relating to Village Farms' majority ownership interest in Pure Sunfarms Corp. (\"Pure Sunfarms\").\nEmerald's Set-Off Claim Rejected by Pure Sunfarms; Village Farms' Majority Equity Interest Confirmed by Pure Sunfarms\nIn its press release of November 27, 2019, Emerald asserted that it previously notified Pure Sunfarms that it claimed a set-off of the $5.94 million equity payment that Emerald was obligated to make to Pure Sunfarms by November 19, 2019 (the \"Equity Payment\") against an unrelated $13 million shareholder loan that Emerald previously advanced to Pure Sunfarms (the \"Emerald Shareholder Loan\"). However, Emerald has failed to disclose that its purported set-off claim:\n \nPure Sunfarms' management previously advised Emerald that Village Farms may dilute Emerald's ownership interest in Pure Sunfarms in accordance with the related legal agreements if Emerald's default was not cured by November 19, 2019. Despite this warning, Emerald nonetheless failed to make the Equity Payment by November 19, 2019. As a result, following Village Farms' $5.94 million additional equity contribution on November 19, 2019, Pure Sunfarms notified both Village Farms and Emerald that Village Farms' share capital account in Pure Sunfarms had been formally increased by $5.94 million. The related issuance of additional Pure Sunfarms shares to Village Farms is solely a documentary formality, which is expected to occur following a valuation process in accordance with the Pure Sunfarms shareholders agreement. Notwithstanding the ongoing valuation process, the effective date of Village Farms' increased equity position in Pure Sunfarms was November 19, 2019, and the issuance of the related additional Pure Sunfarms shares to Village Farms will similarly be effective as of November 19, 2019. \nAdditional Emerald Equity Contribution Due on December 2, 2019\nIn accordance with the applicable legal agreements, Eme...