Village Farms (TSX: VFF) (NASDAQ: VFF) has finally acquired 100% of Pure Sunfarms from that of Emerald Health (TSXV: EMH). The remaining 41.3% ownership of the company was acquired, resulting in the company finally being able to consolidate the financial statements from the subsidiary with its own statements.
In total, Village Farms paid $79.9 million for the remaining stake in Pure Sunfarms. The acquisition was conducted via a C$60 million cash payment, as well as a promissory note tat was issued for $19.9 million, with the note being due six months from the closing date of the transaction.
Commenting on the closing of the transaction, Michael DeGiglio, CEO of Village Farms, commented that the company is now able to, “pursue high-growth opportunities in emerging legal cannabis and CBD markets in the United States and targeted markets internationally.”
The company also notes that its latest set of financials, for the period ended September 30, 3030, will continue to reflect a 58.7% ownership in that of Pure Sunfarms. The fourth quarter as a result is expected to be reported on a partially consolidated basis now that the transaction has closed.
The company will also be required to file pro-forma financial statements with the SEC, as if the transaction had closed on January 1, 2020.
Village Farms last traded at $4.65 on the Nasdaq.
Information for this briefing was found via Sedar and Village Farms International. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
