Village Farms International (VFF -4.37%) owned 53.5% of cannabis grower Pure Sunfarms as of Dec. 31, according to a press release issued on Tuesday. Previously, ownership of the joint venture had been a 50-50 split with Emerald Health Therapeutics (EMHT.F). However, when Emerald failed to make an equity payment by Nov. 19, a dispute arose as to whether the large greenhouse grower could use that as an opportunity to contribute additional funds to Pure Sunfarms and take a majority stake in the pot producer.
Emerald asserted that it still had a 50% stake in Pure Sunfarms. And in January, it looked as if the issue was closed after Village Farms said that it would opt to receive a refund for the additional contribution that it had made in November.
But on Tuesday, Village Farms announced that the dispute with Emerald was now completely resolved in a different way, and that its stake in Pure Sunfarms would be increasing. Village Farms will contribute another 8 million Canadian dollars to Pure Sunfarms in 2020, boosting its stake in the cannabis grower to 57.4%.
Image source: Getty Images.
Its investment in Pure Sunfarms has been a big reason why Village Farms has been able to produce profits in three of its past four quarters.
During the past three quarters, the greenhouse giant has benefited from a CA$17.9 million boost to its bottom line as a result of its joint ventures -- among them, Pure Sunfarms. The cannabis producer is one of the largest in Canada and among the top-selling brands in the Ontario Cannabis Store.
