Related Party Transactions And Balances

12 Months Ended

Dec. 31, 2019

12	RELATED PARTY TRANSACTIONS AND BALANCES

On February 13, 2019, the Company announced that Pure Sunfarms had entered into a credit agreement with Bank of Montreal, as agent and lead lender, and Farm Credit Canada, as lender, in respect of a CA$

million secured

non-revolver

term loan (the “Credit Facility”). The Credit Facility, which matures on February 7, 2022, is secured by the Delta 3 facility, and contains customary financial and restrictive covenants. The Company is not a party to the Credit Facility but has provided a limited guarantee in the amount of CA$

million in connection with the Credit Facility.

As of December 31, 2019 and 2018, the Company had amounts due from its joint venture, Pure Sunfarms, totaling $

4,610

and $

1,079

, respectively.

The December 31, 2019 amount due from joint venture primarily relates to an equity contribution of CA$5,940 (US$4,494) to Pure Sunfarms made by the Company, on November 19, 2019 when Emerald failed to make a required escrow equity payment to Pure Sunfarms on November 1, 2019. Emerald disputed the Company’s additional November equity contribution, as well as the cancellation of 5.94 million common shares of Pure Sunfarms that related to the failure to pay the CA$5,940 equity contribution. In an effort to narrow the issues in dispute and accelerate the resolution of this shareholder dispute, which occurred on March 6, 2020 with the Settlement Agreement, Village Farms unwound its November equity contribution in January with Pure Sunfarms providing Village Farms with a CA$5,940 refund. For the calendar year end December 31, 2019 this was recorded as p

rt of the

mount

ue from Joint Venture. The balance of the 2019 and December 31, 2018 amount due from joint venture are

non-interest

bearing and due on demand.

On July 5, 2018, the Company entered into a Share

older Loan Agreement (the “Loan Agreement”) with Pure Sunfarms, whereby, as of December 31, 2019, the

Company

contributed CA$13,000 (US$9,959) in the form of a demand loan to Pure Sunfarms. Effective January 1, 2019, the loan amounts bear simple interest at the rate of 6.2% per annum, calculated semi-annually. Interest will accrue and be payable upon demand being made by both Shareholders (see note 12).

On March 25, 2019, the Company entered into a Grid Loan Agreement (the “Grid Loan”) with VF Hemp, whereby, as of December 31, 2019, the Company had contributed

approximately

13,323

in the form a grid loan to VF Hemp. The Grid Loan has a maturity date of

March 25, 2022

, and bears simple interest at the rate of

% per annum, calculated monthly.

Under the terms of the AVGG Hemp Joint Venture Agreement, the Company

agreed to

lend approximately US$

million to AVGG Hemp for

start-up

costs and working capital. The loan

bore

simple interest at the rate of

% per annum, calculated monthly. As of December 31, 2019, the Company had loaned AVGG Hemp approximately $

1,184

Immediately following AVGG Hemp’s fourth quarter harvest, all of the hemp was destroyed by a severe windstorm. As a result of the loss, the Company wrote off its $1,184 loan to AVGG Hemp.

Amounts due from the joint ventures, including interest, as of December 31, 2019 and 2018 and included in the statements financial position:


	2019		2018
Pure Sunfarms	$	15,418	$	10,873
VF Hemp		10,865		—
AVGG Hemp		—		—

Total	$	26,283	$	10,873

One of the Company’s employees is related to a member of the Company’s executive management team and received approximately $

110

, $115 and $101 in salary and benefits during the years ended December 31, 2019, 2018 and 2017

respectiv

ely.

Included in other assets as of December 31, 2018 is a $64 promissory note that represents the unpaid amount the Company advanced to an employee in connection with a relocation at the request of the Company. The promissory note was paid in full June 10, 2019.