Village Farms International Announces Pure Sunfarms' Receipt of Health Canada Approval Enabling It to Commence Cannabis Extraction Operations
Village Farms International (NASDAQ: VFF) announced that its subsidiary, Pure Sunfarms, received an amendment from Health Canada allowing it to sell cannabis extract, edibles, and topical products. This milestone enables Pure Sunfarms to start internal extraction operations for its new vape and bottled oil products. CEO Mandesh Dosanjh emphasized the importance of this license for executing their Cannabis 2.0 strategy. The Delta 3 facility can process 35,000 kilograms of biomass annually, enhancing production efficiency and increasing gross margins on extracted products.
- Receipt of Health Canada amendment enabling sale of cannabis extracts and edibles.
- Launch of internal extraction operations for improved profitability.
- Strong initial sell-through of recently launched extracted products.
- Increased control over production process ensuring quality and safety.
- Facility capable of processing 35,000 kilograms of biomass annually.
- None.
VANCOUVER, BC, Sept. 28, 2020 /PRNewswire/ - Village Farms International, Inc. ("Village Farms" or the "Company") (NASDAQ: VFF) (TSX: VFF) today announced that Pure Sunfarms has received from Health Canada an amendment to its standard cannabis processing license that authorizes the sale of cannabis extract, as well as edible and topical cannabis products, produced by Pure Sunfarms at its processing operations located within its Delta 3 production facility, to provincial/territorial boards and directly to authorized retailers. The amendment permits Pure Sunfarms to begin internal extraction operations for its recently launched vape and bottled oil products, as well as additional Cannabis 2.0 products, which Pure Sunfarms expects to launch in the months to come.
"The receipt of this license amendment enables Pure Sunfarms to begin the production and sale of its internally processed vape and bottled oil products and, importantly, is the final approval required to fully execute our Cannabis 2.0 product strategy," said Mandesh Dosanjh, President and CEO, Pure Sunfarms. "We will continue to explore the introduction of a variety of additional Cannabis 2.0 products to the market to meet the evolving preferences of the Canadian cannabis consumer – always with the goal to provide consumers with pure, BC-grown cannabis products at an affordable price."
"This approval comes on the heels of Pure Sunfarms' recent launch of its first extracted products – co-manufactured vapes and bottled oils – which have had strong initial sell-through in each of the provinces in which they have been launched," said Michael DeGiglio, CEO, Village Farms International. "We have always recognized the value of Pure Sunfarms having its own internal extraction operations. It not only enables the generation of a significantly higher gross margin on extracted products but also provides control over the entire production process to ensure the highest levels of quality and safety. It also enables Pure Sunfarms to expeditiously launch additional strains, formats and SKUs of Cannabis 2.0 and bottled oil products."
Pure Sunfarms' extraction operations, located within its 65,000 square foot, state-of-the-art processing center (housed in its 1.1 million square foot Delta 3 greenhouse facility), are capable of processing 35,000 kilograms of biomass annually.
About Village Farms International, Inc.
Village Farms is one of the largest and longest-operating greenhouse growers in North America, and is leveraging its decades of experience as a large-scale, low-cost intensive agriculture and vertically integrated produce supplier to pursue high-value, high-growth plant-based Consumer Packaged Goods opportunities in cannabis and CBD in North America and selected markets internationally.
In Canada, British-Columbia-based Pure Sunfarms is one of the single largest cannabis operations in the world, the lowest-cost greenhouse producer, one of the best-selling brands, and has generated profitability for six consecutive quarters.
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 "big box" and other major retailers and consumer packaged goods companies, and with one the largest greenhouse operations in country, is well positioned for the potential federal legalization of high-THC cannabis.
Internationally, Village Farms is strategically targeting selected, 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 and Section 21E of the Securities Exchange Act of 1934, as amended, 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". Particularly, statements regarding the intended use of proceeds, the acquisition of the remaining interest in Pure Sunfarms, and the future results, performance, achievements, prospects or opportunities for the Company, the greenhouse vegetable industry, the cannabis industry or other risks discussed in the Company's Form 10-K filed on April 1, 2020 and its other filings with the SEC 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. 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 publicly 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.
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