Emerald Health Therapeutics, Inc.
The order included SYNC 25 CBD oil and White Rhino cannabis herb, which are two of Emerald’s bestselling products in other markets. It now ships its products to provincial and territorial distributors in Nova Scotia, Ontario, Alberta, British Columbia, Quebec, Manitoba, Yukon, Newfoundland & Labrador, and PEI, along with private retailers in Saskatchewan.
Our quality products have the features Nova Scotia Liquor Corporation is looking for, and gaining access to this new market further expands Emerald’s distribution and reach to adult consumers,” said president and chief executive Riaz Bandali.
Emerald has a craft cannabis facility in Quebec called Verdélite, and last week it gained a Health Canada license amendment allowing it to sell branded dried cannabis products to wholesalers and private retailers across the country. It has previously packed and sold products under the Emerald brand, but going forward it will focus on creating a brand specifically catering to Quebecois.
Thierry Schmidt, president of Verdélite, said there is currently no cannabis brand specifically targeting Quebec, which has the lowest cannabis consumption rate in the country, according to Statistics Canada data. It is the second largest province and Emerald hopes to bolster sales there through its Verdélite subsidiary.
Its biggest operation is a 50% stake in the Pure Sunfarms facility in British Columbia, which currently has the capacity to produce 75,000 kg of cannabis per year. Its capacity is set to double to 150,00 kg by 2021.
Yet Emerald is in dispute with the board at Pure Sunfarms, which is appointed by Emerald and its JV partner, Village Farms International.
Pure Sunfarms sent it a $7 million bill that it feels it is not obliged to pay. Emerald did not exercise its right to purchase 40% of the cannabis produced at Pure Sunfarms during the three months to Sept. 30, 2019, and this caused lower margins for the JV, which sold it on the market for a cheaper price.
Pure Sunfarms was under the impression that Emerald would pay the difference, but Emerald disputes that, claiming the manner in which Pure Sunfarms went about the sales does not create a liability.
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