New York, February 15, 2024 - PRISM MarketView - Village Farms International (Nasdaq: VFF) has begun construction on its first indoor cannabis production facility in Drachten, Netherlands. The company plans to fund the build-out of the facility from cash on hand.
“As a limited license market with a long-established consumer base and a cannabis-friendly regulatory environment, the Netherlands represents a very attractive near-term opportunity in our international cannabis strategy."
Michael DeGiglio, President and Chief Executive Officer, Village Farms
The company’s Drachten facility will have capacity of up to 2,500 kg of dried flower annually, and its second planned facility, which will be located in Groningen, has planned capacity of up to 10,000 kg annually with production beginning as early as 2026.
Highlights
The company is on track to start production in Q4 2024 and plans to sell flower and hash products across consumer-preferred formats through its majority-owned subsidiary, Leli Holland.
The Netherlands government’s Dutch Closed Supply Chain Experiment, also known as the Dutch Program, is intended to determine whether and how controlled cannabis can be legally supplied to existing retailers in coffee shops and cannabis cafes.
Under the Dutch Program, 10 license holders are exclusively permitted to produce and distribute cannabis to approximately 100 coffee shops that are required to purchase from the 10 license holders. Village Farms holds one of 10 licenses permitting it to legally produce and distribute recreational cannabis in the Netherlands.
About Village Farms International
Village Farms leverages decades of experience as a large-scale, Controlled Environment Agriculture-based, vertically integrated supplier for high-value, high-growth plant-based Consumer Packaged Goods opportunities, with a strong foundation as a leading fresh produce supplier to grocery and large-format retailers throughout the US and Canada, and new high-growth opportunities in the cannabis and CBD categories in North America, the Netherlands and selected markets internationally.
In Canada, the Company’s wholly-owned Canadian subsidiary, Pure Sunfarms, is one of the single largest cannabis operations in the world, the lowest-cost greenhouse producer and one of Canada’s best-selling brands. The Company also owns 70% of Québec-based, Rose LifeScience, a leading third-party cannabis products commercialization expert in the Province of Québec.
In the US, wholly-owned Balanced Health Botanicals is one of the leading CBD brands and e-commerce platforms in the country. Subject to compliance with all applicable US federal and state laws and stock exchange rules, Village Farms plans to enter the US high-THC cannabis market via multiple strategies, leveraging one of the largest greenhouse operations in the country (more than 5.5 million square feet in West Texas), as well as the operational and product expertise gained through Pure Sunfarms’ cannabis success in Canada.
Internationally, Village Farms is targeting selected, nascent, legal cannabis and CBD opportunities with significant medium- and long-term potential, with an initial focus on the Asia-Pacific region and Europe.
PRISM MarketView does not provide investment advice.
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