- Consolidated Revenue Increased 34% Year-Over-Year to
$70.2 Million; Net Loss of
$6.5 Million Primarily Due
to Inflationary Pressures on Produce Business
- Canadian Cannabis Business Contributes Record
14th Consecutive Quarter of Positive Adjusted
EBITDA
- Pure Sunfarms Remains Top-Selling Dried Flower Brand in
Ontario, Alberta and British
Columbia
- Integrations of Balanced Health Botanicals and Rose
Lifescience Proceeding Well with Each Contributing Positive
Adjusted EBITDA
VANCOUVER, BC, May 10, 2022
/PRNewswire/ - Village Farms International, Inc. ("Village
Farms" or the "Company") (NASDAQ: VFF) (TSX: VFF) today announced
its financial results for the first quarter ended March 31, 2022. All figures are in U.S.
dollars unless otherwise indicated.
Management Commentary
"The first quarter of 2022 once again demonstrated the strength
and earnings power of both our Canadian and U.S. Cannabis
businesses," said Michael DeGiglio,
Chief Executive Officer, Village Farms International. "In
what is a typically soft season for retail sales in Canada, both Pure Sunfarms and Rose gained
share in their respective focus markets, and delivered a
14th consecutive quarter of positive adjusted EBITDA for
Canadian Cannabis. Pure Sunfarms' products continue to
resonate with consumers, as our continued focus on quality,
innovation and new product launches strengthen what has become one
of the most respected and trusted brands in the Canadian
market. In Quebec, we estimate that Rose is now a top three
Licensed Producer by sales following strong market share gains
since retail launch early last year. Rose is well positioned
to continue this momentum throughout 2022, further benefitting from
the many opportunities for collaboration with Pure Sunfarms.
With our Canadian Cannabis business continuing to grow sales and
market share domestically, we look forward to capitalizing on Pure
Sunfarms' recent EU GMP certification to commence exportation to
international markets."
"Our U.S. Cannabis segment delivered a solid performance,
highlighted by a strong gross margin and positive adjusted EBITDA
contribution. The integration of Balanced Health into the Village
Farms family is progressing very well and confirms our belief in
both the potential within the existing cannabinoid business and the
significant near- and long-term opportunities in both the low-THC
and high-THC product categories."
"As our Cannabis operations continued to deliver strong growth
and profitability, Village Farms Fresh (Produce) faced one of the
most difficult macro environments in its history. Strong
revenue growth was more than offset by the inflationary impact of
freight, labor, fertilizer, packaging and other cost
increases. An industry-wide supply imbalance limited the
producer's ability to pass along pricing to customers. We are
evaluating new initiatives, including marketing partnerships to
build more scale, spread costs and diversify product
offerings. However, even in the currently negative EBITDA
environment, we maintain the highest conviction that our U.S.
cultivation footprint is a powerhouse opportunity for legal
recreational cannabis when we can participate."
Mr. DeGiglio concluded, "Consumer takeaway trends during the
first quarter further validated our brand and cultivation
strategies. We expect continued momentum throughout 2022 and beyond
as each of our cannabis businesses continues to launch innovative
new products that address evolving consumer demand. We remain
focused on seizing opportunities to continue to deliver top-tier
profitability and market share in the high-growth global cannabis
market."
First Quarter Financial
Highlights
(All comparable periods are for
First Quarter, 2021)
Consolidated
- Consolidated sales increased 34% year-over-year to $70.2 million from $52.4
million;
- Consolidated net loss was ($6.5
million), or ($0.07) per
share, compared with ($7.4 million),
or ($0.10) per share; and,
- Consolidated adjusted EBITDA was negative ($6.1 million) compared with positive adjusted
EBITDA of $0.4 million.
Cannabis
- Total Cannabis segment net sales increased 65% year-over-year
to $28.8 million, representing 41% of
total Village Farms sales; and,
- Total Cannabis segment adjusted EBITDA increased 9%
year-over-year to $2.7 million.
Canadian Cannabis (Pure Sunfarms and Rose LifeScience)
Financial Summary for the Three Months Ended March 31, 2022 and March
31, 2021
- Canadian Cannabis net sales increased 25% year-over-growth with
a gross margin of 34% (within the Company's stated target range)
and adjusted EBITDA of $2.1 million
(C$2.7 million).
Canadian Cannabis Performance
Summary
(millions except %
metrics)
|
Three Months Ended
March 31,
|
|
|
2022
|
2021
|
Change of
C$
|
|
C$
|
US$
|
C$
|
US$
|
|
Total Gross
Sales
|
$40.7
|
$32.1
|
$30.8
|
$24.3
|
+32%
|
Total Net
Sales
|
$27.6
|
$21.8
|
$22.1
|
$17.5
|
+25%
|
Total Cost of Sales
1
|
$18.1
|
$14.3
|
$15.8
|
$12.5
|
+15%
|
Gross Margin
1
|
$9.5
|
$7.5
|
$6.3
|
$5.0
|
+50%
|
Gross Margin %
1
|
34%
|
34%
|
29%
|
29%
|
+17%
|
SG&A
|
$8.8
|
$6.9
|
$5.0
|
$4.0
|
-75%
|
Share-based
compensation
|
$0.5
|
$0.4
|
$1.4
|
$1.1
|
+67%
|
Net income
(loss)
|
$1.3
|
$1.0
|
($3.6)
|
($2.8)
|
+135%
|
Adjusted EBITDA
2
|
$2.7
|
$2.1
|
$3.1
|
$2.5
|
-15%
|
Adjusted EBITDA Margin
2
|
10%
|
10%
|
14%
|
14%
|
-29%
|
- Total cost of sales and gross margin for
Q1 2022 excludes the (C$2,594) US$2,050 positive inventory
adjustment and Q1 2021 excludes the C$3,493 (US$2,778) inventory
adjustment charge from the revaluation of inventory to fair value
at the acquisition date of November 2, 2020.
- Adjusted EBITDA is not a recognized
earnings measure and does not have a standard meaning prescribed in
by GAAP. See "Non-GAAP Measures" below.
|
Canadian Cannabis' Percent of
Sales by Product Group1
|
Three months
ended
March 31,
|
Channel
|
2022
|
2021
|
Retail,
Flower
|
67%
|
71%
|
Retail,
Derivatives
|
8%
|
13%
|
Wholesale, Flower and
Trim
|
25%
|
16%
|
1. Excludes Rose LifeScience
commission-based revenue.
|
U.S. Cannabis (Balanced Health Botanicals and VF
Hemp)
- U.S. Cannabis net sales were $7.0
million, with a gross margin of 67% and adjusted EBITDA of
$0.6 million. There are no
year-over-year comparisons since Balanced Health Botanicals was
acquired by Village Farms on August 16,
2021.
Village Farms Fresh
(Produce)
- Sales increased 19% to $41.4
million; and adjusted EBITDA was negative ($6.2 million).
Strategic Growth and Operational
Highlights
- Pure Sunfarms received EU GMP certification for its 1.1 million
square foot Delta 3 cannabis production facility, permitting Pure
Sunfarms to export EU GMP-certified medical cannabis to importers
and distributors in international markets that require EU GMP
certification;
- Pure Sunfarms launched 29 new SKUs across four product
categories and remained the top-selling brand of dried flower
products in key markets of Ontario, Alberta and British
Columbia*;
- Based on third-party data, it is estimated Rose LifeScience is
a top-three Licensed Producer in Quebec; and,
- The integrations of Balanced Health Botanicals (acquired in the
third quarter of 2021) and Rose LifeScience (acquired in the fourth
quarter of 2021) are proceeding well. Each company expanded its
product offerings in the first quarter of 2022:
-
- Balanced Health's brand, CBDistillery, launched its hemp
extract in more than 1,000 Pet Smart stores in the U.S. through its
partnership with leading pet supplement brand, Zesty Paws;
and,
- Rose launched 14 new cannabis SKUs and shipments of own brands
increased 85% compared to the fourth quarter of 2021.
*Based on OCS market data for the quarter
ended March 31, 2022 and sales
information provided by Buddi retail store data from over 300
retailers across Alberta and
British Columbia as of
March 31, 2022.
Presentation of Financial
Results
The Company's financial statements for the three months ended
March 31, 2022, as well as the
comparative periods for 2021, have been prepared and presented
under United States Generally Accepted Accounting Principals
("GAAP"). Balanced Health was acquired on August 16, 2021 and their results are presented
in the operations of our consolidated wholly-owned subsidiaries for
the three months ended March 31,
2022. The Company acquired 70% of Rose LifeScience on
November 15, 2021 and their results
are presented in the operations of our consolidated wholly-owned
subsidiaries and the minority interest is presented in Net Income
(Loss) Attributable to Non-controlling Interests, Net of Tax for
the three months ended March 31,
2022.
RESULTS OF OPERATIONS
(In thousands of U.S. dollars, except per share amounts, and
unless otherwise noted)
Consolidated Financial
Performance
|
|
For the three months
ended March 31,
|
|
|
|
2022
(3)
|
|
|
2021
(3)
|
|
Sales
|
|
$
|
70,156
|
|
|
$
|
52,396
|
|
Cost of
sales
|
|
|
(60,252)
|
|
|
|
(50,089)
|
|
Gross margin
|
|
|
9,904
|
|
|
|
2,307
|
|
Selling, general and
administrative expenses
|
|
|
(16,971)
|
|
|
|
(8,092)
|
|
Share-based
compensation
|
|
|
(964)
|
|
|
|
(1,998)
|
|
Interest
expense
|
|
|
(683)
|
|
|
|
(741)
|
|
Interest
income
|
|
|
110
|
|
|
|
3
|
|
Foreign exchange gain
(loss)
|
|
|
319
|
|
|
|
(504)
|
|
Other expense,
net
|
|
|
(8)
|
|
|
|
(69)
|
|
Gain on disposal of
assets
|
|
|
—
|
|
|
|
—
|
|
Recovery of income
taxes
|
|
|
1,666
|
|
|
|
1,839
|
|
Loss from consolidated
entities
|
|
|
(6,627)
|
|
|
|
(7,255)
|
|
Less: net loss
attributable to non-controlling interests, net of tax
|
|
|
162
|
|
|
|
—
|
|
Loss from equity method
investments
|
|
|
(52)
|
|
|
|
(127)
|
|
Net loss attributable
to Village Farms International Inc.
|
|
$
|
(6,517)
|
|
|
$
|
(7,382)
|
|
Adjusted EBITDA
(4)
|
|
$
|
(6,111)
|
|
|
$
|
404
|
|
Basic loss per
share
|
|
$
|
(0.07)
|
|
|
$
|
(0.10)
|
|
Diluted loss per
share
|
|
$
|
(0.07)
|
|
|
$
|
(0.10)
|
|
3. For the three
months ended March 31, 2022, Balanced Health's financial results
are fully consolidated in the financial results of the Company. For
the three months ended March 31, 2022, Village Farms' share of Rose
LifeScience's financial results are fully consolidated in the
financial results of the Company with the minority non-controlling
interest presented in net loss attributable to non-controlling
interests, net of tax.
4. Adjusted EBITDA
is not a recognized earnings measure and does not have a
standardized meaning prescribed by GAAP. Therefore, Adjusted EBITDA
may not be comparable to similar measures presented by other
issuers. Management believes that Adjusted EBITDA is a useful
supplemental measure in evaluating the performance of the Company
because it excludes non-recurring and other items that do not
reflect our business performance. Adjusted EBITDA includes the
Company's 70% interest in Rose LifeScience since acquisition and
65% interest in VFH.
|
We caution that our results of operations for the three months
ended March 31, 2022 and 2021 may not
be indicative of our future performance, particularly in light of
the ongoing COVID-19 pandemic. We are currently unable to assess
the ultimate impact of the COVID-19 pandemic on our business and
our results of operations for future periods.
Discussion of Financial
Results
SEGMENTED RESULTS OF
OPERATIONS
(In thousands of U.S. dollars, except per share amounts, and
unless otherwise noted)
|
For the Three Months
Ended March 31, 2022
|
|
|
VF Fresh
(Produce)
|
|
|
Cannabis-
Canada (5)
|
|
|
Cannabis-
U.S. (5)
|
|
|
Clean
Energy
|
|
|
Corporate
|
|
|
Total
|
|
Sales
|
$
|
41,349
|
|
|
$
|
21,769
|
|
|
$
|
7,043
|
|
|
$
|
(5)
|
|
|
$
|
—
|
|
|
$
|
70,156
|
|
Cost of
sales
|
|
(45,520)
|
|
|
|
(12,259)
|
|
|
|
(2,331)
|
|
|
|
(142)
|
|
|
|
—
|
|
|
|
(60,252)
|
|
Selling, general and
administrative expenses
|
|
(3,140)
|
|
|
|
(6,933)
|
|
|
|
(4,296)
|
|
|
|
(32)
|
|
|
|
(2,570)
|
|
|
|
(16,971)
|
|
Share-based
compensation
|
|
—
|
|
|
|
(367)
|
|
|
|
(95)
|
|
|
|
—
|
|
|
|
(502)
|
|
|
|
(964)
|
|
Other (expense) income,
net
|
|
(30)
|
|
|
|
(746)
|
|
|
|
—
|
|
|
|
(6)
|
|
|
|
520
|
|
|
|
(262)
|
|
Recovery of (provision
for) income taxes
|
|
1,715
|
|
|
|
(639)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
590
|
|
|
|
1,666
|
|
(Loss) income from
consolidated entities
|
|
(5,626)
|
|
|
|
825
|
|
|
|
321
|
|
|
|
(185)
|
|
|
|
(1,962)
|
|
|
|
(6,627)
|
|
Less: net loss
attributable to non-controlling interests, net of tax
|
|
—
|
|
|
|
162
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
162
|
|
Loss from equity method
investments
|
|
—
|
|
|
|
—
|
|
|
|
(52)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(52)
|
|
Net (loss)
income
|
|
(5,626)
|
|
|
|
987
|
|
|
|
269
|
|
|
|
(185)
|
|
|
|
(1,962)
|
|
|
|
(6,517)
|
|
Adjusted EBITDA
(6)
|
$
|
(6,201)
|
|
|
$
|
2,104
|
|
|
$
|
580
|
|
|
$
|
(59)
|
|
|
$
|
(2,535)
|
|
|
$
|
(6,111)
|
|
Basic (loss) income per
share
|
$
|
(0.06)
|
|
|
$
|
0.01
|
|
|
$
|
0.00
|
|
|
$
|
(0.00)
|
|
|
$
|
(0.02)
|
|
|
$
|
(0.07)
|
|
Diluted (loss) income
per share
|
$
|
(0.06)
|
|
|
$
|
0.01
|
|
|
$
|
0.00
|
|
|
$
|
(0.00)
|
|
|
$
|
(0.02)
|
|
|
$
|
(0.07)
|
|
|
For the Three Months
Ended March 31, 2021
|
|
|
VF Fresh
(Produce)
|
|
|
Cannabis-
Canada (5)
|
|
|
Cannabis-
U.S. (5)
|
|
|
Clean
Energy
|
|
|
Corporate
|
|
|
Total
|
|
Sales
|
$
|
34,867
|
|
|
$
|
17,460
|
|
|
$
|
—
|
|
|
$
|
69
|
|
|
$
|
—
|
|
|
$
|
52,396
|
|
Cost of
sales
|
|
(34,150)
|
|
|
|
(15,248)
|
|
|
|
—
|
|
|
|
(691)
|
|
|
|
—
|
|
|
|
(50,089)
|
|
Selling, general and
administrative expenses
|
|
(2,551)
|
|
|
|
(3,966)
|
|
|
|
—
|
|
|
|
(32)
|
|
|
|
(1,543)
|
|
|
|
(8,092)
|
|
Share-based
compensation
|
|
—
|
|
|
|
(1,094)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(904)
|
|
|
|
(1,998)
|
|
Other expense,
net
|
|
(256)
|
|
|
|
(630)
|
|
|
|
—
|
|
|
|
(12)
|
|
|
|
(413)
|
|
|
|
(1,311)
|
|
Recovery of income
taxes
|
|
505
|
|
|
|
644
|
|
|
|
—
|
|
|
|
—
|
|
|
|
690
|
|
|
|
1,839
|
|
Loss from consolidated
entities
|
|
(1,585)
|
|
|
|
(2,834)
|
|
|
|
—
|
|
|
|
(666)
|
|
|
|
(2,170)
|
|
|
|
(7,255)
|
|
Less: net loss
attributable to non-controlling interests, net of tax
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Loss from equity method
investments
|
|
—
|
|
|
|
—
|
|
|
|
(127)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(127)
|
|
Net loss
|
|
(1,585)
|
|
|
|
(2,834)
|
|
|
|
(127)
|
|
|
|
(666)
|
|
|
|
(2,170)
|
|
|
|
(7,382)
|
|
Adjusted EBITDA
(6)
|
$
|
(492)
|
|
|
$
|
2,534
|
|
|
$
|
(79)
|
|
|
$
|
(16)
|
|
|
$
|
(1,543)
|
|
|
$
|
404
|
|
Basic loss per
share
|
$
|
(0.02)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.00)
|
|
|
$
|
(0.01)
|
|
|
$
|
(0.03)
|
|
|
$
|
(0.10)
|
|
Diluted loss per
share
|
$
|
(0.02)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.00)
|
|
|
$
|
(0.01)
|
|
|
$
|
(0.03)
|
|
|
$
|
(0.10)
|
|
5. For the three
months ended March 31, 2022, Balanced Health's financial results
are fully consolidated in the financial results of the Company. For
the three months ended March 31, 2022, Village Farms' share of Rose
LifeScience's financial results are fully consolidated in the
financial results of the Company with the minority non-controlling
interest presented in net loss attributable to non-controlling
interests, net of tax.
6. Adjusted EBITDA
is not a recognized earnings measure and does not have a
standardized meaning prescribed by GAAP. Therefore, Adjusted EBITDA
may not be comparable to similar measures presented by other
issuers. Management believes that Adjusted EBITDA is a useful
supplemental measure in evaluating the performance of the Company
because it excludes non-recurring and other items that do not
reflect our business performance. Adjusted EBITDA includes the
Company's 70% interest in Rose LifeScience since acquisition and
65% interest in VFH.
|
A detailed discussion of our consolidated and segment results
can be found in the 10Q MD&A on the Village Farms website under
Financial Reports (https://villagefarms.com/financial-reports/)
within the Investors section.
Reconciliation of Net Income to
Adjusted EBITDA
The following table reflects a reconciliation of net income to
Adjusted EBITDA, as presented by the Company:
|
|
For the three months
ended March 31,
|
|
(in thousands of
U.S. dollars)
|
|
2022
(9)
|
|
|
2021
(9)
|
|
Net loss
|
|
$
|
(6,517)
|
|
|
$
|
(7,382)
|
|
Add:
|
|
|
|
|
|
|
|
|
Amortization
|
|
|
2,702
|
|
|
|
3,412
|
|
Foreign
currency exchange (gain) loss
|
|
|
(319)
|
|
|
|
504
|
|
Interest
expense, net
|
|
|
573
|
|
|
|
738
|
|
Recovery
of income taxes
|
|
|
(1,666)
|
|
|
|
(1,839)
|
|
Share-based compensation
|
|
|
964
|
|
|
|
1,998
|
|
Interest
expense for JVs
|
|
|
13
|
|
|
|
14
|
|
Amortization for JVs
|
|
|
94
|
|
|
|
34
|
|
Foreign
currency exchange loss for JVs
|
|
|
29
|
|
|
|
—
|
|
Purchase
price adjustment (10)
|
|
|
(2,050)
|
|
|
|
2,925
|
|
Amortization of deferred financing
|
|
|
66
|
|
|
|
—
|
|
Adjusted EBITDA
(11)
|
|
$
|
(6,111)
|
|
|
$
|
404
|
|
Adjusted EBITDA for JVs
(12)
|
|
$
|
(25)
|
|
|
$
|
(79)
|
|
Adjusted EBITDA
excluding JVs
|
|
$
|
(6,086)
|
|
|
$
|
483
|
|
9. For the three
months ended March 31, 2022 and March 31, 2021, Pure Sunfarms is
fully consolidated in the financial results of the Company. For the
period January 1, 2022 to March 31, 2022, Balanced Health is fully
consolidated in the financial results of the Company. For the
period January 1, 2022 to March 31, 2022, Village Farms' share of
Rose LifeScience's financial results are fully consolidated in the
financial results of the Company.
10. The purchase
price adjustment reflects the non-cash accounting charge to cost of
sales resulting from the revaluation of Pure Sunfarms' inventory to
fair value at the acquisition date.
11. Adjusted
EBITDA is not a recognized earnings measure and does not have a
standardized meaning prescribed by GAAP. Therefore, Adjusted EBITDA
may not be comparable to similar measures presented by other
issuers. Management believes that Adjusted EBITDA is a useful
supplemental measure in evaluating the performance of the Company
because it excludes non-recurring and other items that do not
reflect our business performance. Adjusted EBITDA includes the 70%
interest in Rose LifeScience since acquisition and 65% interest in
VFH.
12. The Adjusted
EBITDA for JVs consists of the VF Hemp Adjusted EBITDA for the
three months ended March 31, 2022 and 2021.
|
This press release is intended to be read
in conjunction with the Company's Consolidated Financial Statements
("Financial Statements") and Management's Discussion & Analysis
("MD&A") for the three months and year ended March 31, 2022 in the Company Form 10-Q, which
will be filed on
(www.sec.gov/edgar.shtml) and SEDAR
(www.sedar.com) and will be available
at www.villagefarms.com.
Our Response to the Ongoing
Coronavirus Pandemic
In March 2020, the World Health
Organization declared the outbreak of the COVID-19 virus a global
pandemic. This outbreak continues to cause major disruptions to
businesses and markets worldwide as the virus continues to spread.
Several countries as well as certain states and cities within
the United States and Canada have enacted temporary closures of
businesses, issued quarantine or shelter-in-place orders and taken
other restrictive measures. In response to the COVID-19 pandemic,
the Company implemented safety protocols and procedures to protect
its employees, its subcontractors, and its customers. These
protocols take into consideration guidance from state and local
government agencies as well as the Centers for Disease Control and
Prevention and other public health authorities.
As of May 9, 2022, all of the
Company's operations are operating normally, however, the extent to
which COVID-19 and the related global economic crisis affect the
Company's business, results of operations and financial condition,
will depend on future developments that are highly uncertain and
cannot be predicted, including the scope and duration of the
pandemic and any recovery period, future actions taken by
governmental authorities, central banks and other third parties
(including new financial regulation and other regulatory reform) in
response to the pandemic, and the effects on our produce, clients,
vendors and employees. Village Farms continues to service its
customers amid uncertainty and disruption linked to COVID-19 and is
actively managing its business to respond to the impact.
Conference Call
Village Farms' management team will host a conference call
today, Monday, May 10, 2022, at
8:30 a.m. ET to discuss its financial
results. Participants can access the conference call by
telephone by dialing (416) 764-8659 or (888) 664-6392, or via the
Internet at: https://bit.ly/3LwGlTM.
For those unable to participate in the conference call at the
scheduled time, it will be archived for replay both by telephone
and via the Internet beginning approximately one hour following
completion of the call. To access the archived conference call by
telephone, dial (416) 764-8677 or (888) 390-0541 and
enter the passcode 334813 followed by the pound key. The telephone
replay will be available until Monday, May
17, 2022 at midnight (ET). The conference call will
also be archived on Village Farms' website at
http://villagefarms.com/investor-relations/investor-calls.
About Village Farms International,
Inc.
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 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.
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 limited
operating history, including that of Rose LifeScience Inc.
("Rose"), Balanced Health Botanicals, LLC ("Balanced Health"), Pure
Sunfarms, Inc.("Pure Sunfarms") and our operations of growing hemp
in the United States; the legal
status of Pure Sunfarms, Rose and Balanced Health cannabis
business; risks relating to the integration of Balanced Health and
Rose into our 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, CBD, cannabinoids, and agricultural businesses;
market position, ability to leverage current business relationships
for future business involving hemp and cannabinoids, the ability of
Pure Sunfarms and Rose to cultivate and distribute cannabis in
Canada; existing and new
governmental regulations, including risks related to regulatory
compliance and licenses (e.g., Pure Sunfarms ability to obtain
licenses for its Delta 2 greenhouse facility as well as additional
licenses under the Canadian act respecting cannabis to amend to the
Controlled Drugs and Substances Act, the Criminal Code and other
Acts, S.C. 2018, c. 16 (Canada)
for its Delta 3 greenhouse facility), and changes in our regulatory
requirements; risks relating to conversion of our greenhouses to
cannabis production for Pure Sunfarms; 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
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.
View original
content:https://www.prnewswire.com/news-releases/village-farms-international-reports-first-quarter-2022-financial-results-301543550.html
SOURCE Village Farms International, Inc.