– Pure Sunfarms Expects to Begin Planting
First Half of Delta 2 Facility in September of This Year with
Second Half Targeted to Begin Production in 2022 –
VANCOUVER, BC, July 1, 2021 /PRNewswire/ - Village Farms
International, Inc. (the "Company" or "Village Farms") (TSX: VFF)
(NASDAQ: VFF) today announced its wholly owned subsidiary, Pure
Sunfarms, Canada's premiere
cannabis cultivator and brand, has received from Health Canada an
amendment to the cultivation license (the "License Amendment") for
its 1.1 million square foot Delta 2 greenhouse facility (the
adjacent facility to its Delta 3 facility), permitting Pure
Sunfarms to cultivate cannabis immediately in the half of the Delta
2 facility for which conversion to cannabis production has been
completed. Under the License Amendment, Pure Sunfarms is also
permitted to begin cannabis production in the remaining half of the
Delta 2 facility when conversion of that half of facility for
cannabis production has been completed.
The amendment to the Delta 2 cultivation license immediately
increases Pure Sunfarms' total cultivation capacity to 1.65 million
square feet, all of which is at a single location in Delta, British
Columbia. Pure Sunfarms expects to begin planting in the
completed half of the Delta 2 facility in September of this year,
with the first harvest expected in November of this year.
Pure Sunfarms expects to further increase its cultivation capacity
to 2.2 million square feet during the second half of 2022 upon
completion of the conversion of the remaining half of the Delta 2
facility for cannabis production.
"As many licensed producers in Canada scale back operations, we are proud and
excited to be significantly expanding production to meet the
expected continued growth in Pure Sunfarms' retail branded sales,
driven by Pure Sunfarms' leading brand market share in dried flower
against the backdrop of the overall growth in the Canadian market,
as well as additional opportunities that we are pursuing both
within Canada and in international
markets," said Michael DeGiglio,
CEO, Village Farms. "Pure Sunfarms has delivered three consecutive
quarters of 20 percent or greater growth in retail branded sales,
and during the first two months of the second quarter of 2021 was
once again the top-selling brand of dried cannabis in Canada's largest provincial market, as it has
been in every quarter since it launched its retail branded products
in the fourth quarter of 20191."
Mr. DeGiglio added, "With this expansion, we expect to benefit
from additional economies of scale and other efficiencies that will
further support our unique ability to not only offer premium
quality cannabis products at an everyday price but to do so while
consistently generating profitability. As it has done with
the existing Delta 3 facility, which is currently operating at full
production, Pure Sunfarms will prudently deploy Delta 2's
production capacity to meet sales demand while continuing to
effectively manage inventory levels."
Notes
1. Market share performance cited has been calculated by Pure
Sunfarms from sales information provided by Ontario Cannabis
Store.
About Village Farms International, Inc.
Village Farms is one of the largest and longest-operating
greenhouse growers in North
America. The Company leverages decades of experience in
large-scale, low-cost intensive agriculture as a vertically
integrated produce supplier to pursue high-value, high-growth
plant-based Consumer Packaged Goods opportunities in cannabis and
CBD in North America and select
markets internationally.
The Company's wholly owned Canadian subsidiary, British-Columbia-based Pure Sunfarms is
currently one of the single largest cannabis operations in the
world, one of the lowest-cost greenhouse producers and one of the
best-selling brands in Canada.
In the U.S., subject to compliance with all applicable U.S.
federal and state laws, Village Farms is pursuing a strategy to
become a leading developer and supplier of branded and
white-labeled CBD products targeting major retailers and consumer
packaged goods companies. Village Farms has one of the largest
greenhouse operations in the country and is strategically
positioned to utilize its agricultural experience and Pure
Sunfarms' operational and product expertise, to pursue potential
high-THC cannabis opportunities as legally permitted to do so.
Internationally, Village Farms evaluates and targets select,
nascent, legal cannabis and CBD opportunities with significant
long-term potential, with an initial focus on the Asia-Pacific region through its investment in
Australia-based Altum
International.
Cautionary Statement Regarding Forward-Looking
Information
This press release contains forward-looking statements within
the meaning of the United States Private Securities Litigation
Reform Act of 1995, Section 27A of the Securities Act of 1933, as
amended, (the "Securities Act") and Section 21E of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), and is
subject to the safe harbor created by those sections. This press
release also contains "forward-looking information" within the
meaning of applicable Canadian securities law.
We refer to such forward-looking statements and
forward-looking information collectively as "forward-looking
statements". Forward-looking statements may relate to the Company's
future outlook or financial position and anticipated events or
results and may include statements regarding the financial
position, business strategy, budgets, expansion plans, litigation,
projected production, projected costs, capital expenditures,
financial results, taxes, plans and objectives of or involving the
Company. Particularly, statements regarding future results,
performance, achievements, prospects or opportunities for the
Company, the greenhouse vegetable industry or the cannabis industry
are forward-looking statements. In some cases, forward-looking
information can be identified by such terms as "outlook", "may",
"might", "will", "could", "should", "would", "occur", "expect",
"plan", "anticipate", "believe", "intend", "try", "estimate",
"predict", "potential", "continue", "likely", "schedule",
"objectives", or the negative or grammatical variation thereof or
other similar expressions concerning matters that are not
historical facts.
The forward-looking statements in this press release are
subject to risks that may include, but are not limited to our
ability to continue our greenhouse growing operations at current
scale, cost and our ability related to continue to be a vertically
integrated produce supplier and legal, financial and regulatory
risks related to pursuing high-value, high growth plant-based
Consumer Packaged Goods opportunities in cannabis and CBD in
North America and select markets
internationally, our ability to maintain low costs and
market-leading position in Canada.
Our strategy to pursue a leading position as a developer and
supplier of branded and white-labeled CBD products targeting major
retailers and consumer packaged goods companies and the pursuit of
potential high-THC cannabis opportunities are subject to risks
associated with the legal status of the cannabis business; risks
relating to obtaining additional financing, including our
dependence upon credit facilities; potential difficulties in
achieving and/or maintaining profitability; variability of product
pricing; risks inherent in the cannabis, hemp and agricultural
businesses, existing and new governmental regulations, regulatory
compliance and licenses and changes in our regulatory requirements;
risks related to rules and regulations at the U.S. federal (Food
and Drug Administration and United States Department of
Agriculture), state and municipal levels with respect to produce
and hemp; retail consolidation, technological advances and other
forms of competition; transportation disruptions; product liability
and other potential litigation; retention of key executives; labor
issues; uninsured and underinsured losses; vulnerability to rising
energy costs; environmental, health and safety risks, foreign
exchange exposure, risks associated with cross-border trade;
difficulties in managing our growth; restrictive covenants under
our credit facilities; natural catastrophes; the ongoing and
developing COVID-19 pandemic; and tax risks.
The Company has based these forward-looking statements on
factors and assumptions about future events and financial trends
that it believes may affect its financial condition, results of
operations, business strategy and financial needs. Although the
forward-looking statements contained in this press release are
based upon assumptions that management believes are reasonable
based on information currently available to management, there can
be no assurance that actual results will be consistent with these
forward-looking statements. Forward-looking statements necessarily
involve known and unknown risks and uncertainties, many of which
are beyond the Company's control, that may cause the Company's or
the industry's actual results, performance, achievements, prospects
and opportunities in future periods to differ materially from those
expressed or implied by such forward-looking statements. These
risks and uncertainties include, among other things, the factors
contained in the Company's filings with securities regulators,
including this press release. In particular, we caution you that
our forward-looking statements are subject to the ongoing and
developing circumstances related to the COVID-19 pandemic, which
may have a material adverse effect on our business, operations and
future financial results.
When relying on forward-looking statements to make decisions,
the Company cautions readers not to place undue reliance on these
statements, as forward-looking statements involve significant risks
and uncertainties and should not be read as guarantees of future
results, performance, achievements, prospects and opportunities.
The forward-looking statements made in this press release relate
only to events or information as of the date on which the
statements are made in this press release. Except as required by
law, the Company undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, after the date on which the statements
are made or to reflect the occurrence of unanticipated
events.
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SOURCE Village Farms International, Inc.