– Significantly Expanded Processing
Area Will Generate Additional Production Cost Efficiencies, Further
Elevate the Quality of Products, Expand Product Offerings and
Increase Processing Throughput –
VANCOUVER, March 23, 2020 /PRNewswire/ - Village Farms
International, Inc. ("Village Farms" or the "Company") (TSX: VFF;
NASDAQ: VFF) today announced its majority-owned joint venture
for large-scale, low-cost, high-quality cannabis production, Pure
Sunfarms, has received approval from Health Canada to operate the
final components of its 65,000 square foot, state-of-the-art
processing center located within the 1.1 million square foot Delta
3 greenhouse facility. The significantly expanded processing
area will enable Pure Sunfarms to generate additional production
cost efficiencies, further elevate the quality of its products,
expand its product offerings and increase its processing
throughput.
Health Canada's approval of the
additional processing area permits Pure Sunfarms to begin operation
of:
- 11 additional drying rooms utilizing advanced drying technology
and processes to further enhance the quality of Pure Sunfarms
product;
- 5 additional packaging rooms;
- 2 additional testing areas;
- 6 additional storage areas; and,
- 7 extraction rooms with equipment capable of processing 35,000
kilograms of biomass annually.
The expanded processing center has been designed to satisfy full
European Union GMP compliance and certification requirements, which
Pure Sunfarms is currently pursuing. The 65,000 square foot
processing centre has capacity to serve both the Delta 3 and Delta
2 greenhouse facilities, with a combined production area of 2.2
million square feet, at full production.
"The approval of this additional processing space enables Pure
Sunfarms to enhance our operations and quality processes to further
support our commitment to providing our customers with high-quality
products at a great price," said Mandesh Dosanjh, President and
CEO, Pure Sunfarms. "Pure Sunfarms expects to begin to realize the
benefits of this new space in the coming quarter, allowing us to
build on our strong performance in the Canadian markets we
serve."
"Pure Sunfarms' success is directly attributable to the decades
of large-scale growing and operational experience contributed by
Village Farms, low-cost production, efficient capital investment,
disciplined cost management and the installation of a smart, highly
talented and experienced leadership team," said Michael DeGiglio, CEO, Village Farms. "It is a
business model that positions Pure Sunfarms to continue to be a
leader in the Canadian cannabis sector for years to come. The
expansion of this processing area significantly strengthens Pure
Sunfarms' capabilities to produce high-quality products, supports
its ongoing pursuit of even greater production efficiencies and
sets the stage for the introduction of new product formats to build
on its leading sales performance in dried cannabis products."
Pure Sunfarms Remains Top-Selling Dried Cannabis Brand with
Ontario Cannabis Store for First Two Months of
20201
Village Farms also reported that Pure Sunfarms was the
top-selling brand of dried flower with the Ontario Cannabis Store
(OCS) by dollars sold and kilograms sold for the year to date ended
February 29, 2020, achieving a 13.5%
market share (by kilograms sold). In addition, for the same
period, Pure Sunfarms had two of the top four strains by dollars
sold and kilograms sold (Afghan Kush and White Rhino) and Pure
Sunfarms' Afghan Kush was the top strain by sales dollars and
kilograms sold with the OCS. As previously announced, Pure
Sunfarms was the top performing brand of dried flower by both
kilograms sold and dollar sales with the Ontario Cannabis Store
(OCS) for the three-month period ended December 31, 2019, achieving 13% market share (by
kilograms sold).1
"We are thrilled to see Pure Sunfarms continue its strong sales
performance and once again rank as the best-selling dried cannabis
brand with the OCS," said Mr. DeGiglio. "Pure Sunfarms has rapidly
established itself as a premier dried cannabis brand with
high-quality products that consumers want at an attractive
price."
Pure Sunfarms Launches New Large-Format 28-Gram Product of
High-Quality Cannabis
Village Farms also announced that Pure Sunfarms has launched a
new large-format 28-gram (1 ounce) high-quality cannabis
product. Pure Sunfarms' 28-gram pack is now available for
consumers in British Columbia to
purchase online at BC Cannabis Stores, with availability at
licensed retailers across the province to follow. The 28-gram pack
is expected to be available online at the Ontario Cannabis Store in
early April, and at participating retailers shortly
thereafter.
"We know that Canadian consumers of recreational cannabis are
looking for convenient, quality product, at a price they can count
on," said Mandesh Dosanjh, President and CEO, Pure Sunfarms. "At
Pure Sunfarms, we pride ourselves on producing B.C. grown cannabis,
farmed with care, and we'll continue to do just that with our new
large format pack of dried flower. Consumers will receive the same
high quality they have come to expect from Pure Sunfarms in every
28-gram package."
Mr. DeGiglio commented, "As a high-quality, low-cost producer,
Pure Sunfarms has the advantage of significant pricing flexibility
as the Canadian cannabis market continues to evolve to support and
grow its strong market share."
Notes
1. Data cited has been calculated by Pure
Sunfarms from sales information provided by OCS.
About Village Farms International, Inc.
Village Farms is one of the largest and longest-operating
vertically integrated greenhouse growers in North America and the only publicly traded
greenhouse produce company in Canada. Village Farms produces and distributes
fresh, premium-quality produce with consistency 365 days a year to
national grocers in the U.S. and Canada from more than nine million square feet
of Controlled Environment Agriculture (CEA) greenhouses in
British Columbia and Texas, as well as from its partner greenhouses
in British Columbia, Ontario and Mexico. The Company is now
leveraging its 30 years of experience as a vertically integrated
grower for the rapidly emerging global cannabis opportunity through
its majority ownership of British
Columbia-based Pure Sunfarms Corp., one of the single
largest cannabis growing operations in the world. The Company
also intends to pursue opportunities to become a vertically
integrated leader in the U.S. hemp-derived CBD market, subject to
compliance with all applicable U.S. federal and state laws, Village
Farms has established two joint ventures, Village Fields Hemp and
Arkansas Valley Green and Gold Hemp, for outdoor hemp cultivation
and CBD extraction and is pursuing controlled environment hemp
production at a portion of its Texas greenhouse operations, which total 5.7
million square feet of production area.
Cautionary Language
Certain statements contained in this press release constitute
forward-looking information within the meaning of applicable
securities laws ("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, 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, Pure Sunfarms, the greenhouse vegetable industry or
the cannabis and hemp industries, including as to Pure Sunfarms'
market share and its ability to increase its processing throughput,
elevate the quality of its products, realize additional production
cost efficiencies and expand its product offerings, 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", "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.
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 U.S. and Canadian securities regulators, including as detailed
in the Company's annual information form and management's
discussion and analysis for the year-ended December 31, 2018, as well as the impact of the
current global pandemic due to COVID-19 on the business and
operations of the Company and Pure Sunfarms.
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 only
relate 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.
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SOURCE Village Farms International, Inc.