Acquisition of 70% provides a substantial presence in one
of Canada's largest cannabis
markets, experienced, Québec-based cannabis leadership, and a
Québec-based production facility
HUNTINGDON, QC, Nov. 15, 2021 /CNW Telbec/ - Privately-held,
Québec-based ROSE LifeScience Inc. ("ROSE"), a leading vertically
integrated branded cannabis producer, supplier, and
commercialization expert in the Province of Québec, has announced
70% of its ownership has been acquired by Village Farms
International, Inc. ("Village Farms" or the "Company") (NASDAQ:VFF)
(TSX:VFF), effective today. ("Closing Date").
The transaction is valued at up to C$46.7
million. ROSE becomes the Québec operational unit of Village
Farms' Canadian cannabis business segment, with ROSE's headquarters
and the existing team remaining in Québec.
ROSE is a leading third-party cannabis products
commercialization expert in the Province of Québec, acting as the
exclusive, direct-to-retail sales, marketing and distribution
entity for Entourage Health, Sundial, Tilray and The Flowr
Corporation and 10 Québec micro and craft growers throughout
Québec. ROSE also distributes to Québec retail its own brand of
high-quality cannabis products. Tam
Tams is grown and processed at ROSE's Québec-based, Health
Canada-licensed 55,000 square-foot Controlled Environment
Agriculture (CEA), purpose-built facility in Huntingdon, which was commissioned in 2020.
ROSE also enables a platform for commercialization in the Québec
market for several Québec-based micro-producers under its DLYS
brand.
Highlights of the Acquisition
- Adds a substantial presence in the Province of Québec as a
cannabis supplier, producer and commercialization expert in the
Province of Québec, which represents approximately 15%1
of total Canadian retail cannabis sales at the current annualized
run rate of more than C$627
million1, the vast majority of which is dried
flower and pre-rolled products;
- Adds experienced, Québec-based industry leaders who will join
the Village Farms/Pure Sunfarms team, bolstering extensive existing
relationships in the Québec cannabis market and leveraging
specialized, deep experience in both consumer-packaged goods and
regulated industries; and,
- Adds a Québec-based, 55,000 square foot, Health Canada-licensed
Controlled Environment Agriculture (CEA) cultivation and processing
facility, which is included in the transaction.
ROSE Management Commentary
"We have long admired the
success of Village Farms and Pure Sunfarms in the Canadian cannabis
industry. We are proud to join forces with them to accelerate our
successes, and seize this opportunity to further evolve the
industry in our home province of Québec," said Davide Zaffino, co-founder and President and
Chief Executive Officer, ROSE. "We cherish our Québec roots, and
deeply believe in our province's culture and values. As always, we
remain committed to ensuring that Québec benefits from the
responsible production, sale and consumption of cannabis. As part
of the outstanding family of cannabis businesses within Village
Farms, we are even better positioned to continue playing this
leading role in the Québec landscape."
Village Farms Management Commentary
"The acquisition
of ROSE – by far the most successful Québec-based cannabis operator
in our view – is a prudent and strategic means by which to enter,
and rapidly ramp sales, in one of Canada's largest provincial cannabis markets,"
said Michael DeGiglio, CEO, Village
Farms. "ROSE adds an exceptional group of Québec-based experts to
our Canadian cannabis operations. The team has a proven track
record of success, and shares our belief in the importance of
cultivation excellence, as well as the advantage of innovation and
continuous improvement. We look forward to building on ROSE's
strong foundation in the Québec market, with a long-term commitment
to the Company's Québec heritage."
"ROSE immediately expands our reach to more than 90%1
of all Canadian retail cannabis sales and represents a major step
forward in Pure Sunfarms' strategy to become the leading national
supplier of cannabis in Canada,
with at least a 20% market share in the dried flower category,"
said Mandesh Dosanjh, President and Chief Executive Officer, Pure
Sunfarms. "ROSE is very well respected in the Québec cannabis
industry, with a reputation for leadership and brand strategy
success that we have come to know well and respect. We look forward
to pursing the new opportunities, both near-term and long-term,
created by the addition of ROSE as our Québec-based cannabis
operational unit."
Notes
1. Statcan. Based on data as at August 31,
2021.
About ROSE LifeScience Inc.
As a private Québec
company, ROSE LifeScience is committed to ensuring that Québec
benefits from the responsible production, sale, and consumption of
cannabis. From cannabis cultivation to marketing,
commercialization, and logistics, the Huntingdon, QC company plays a key role in the
provincial market. In addition to its own products and expertise,
ROSE provides specialized industry services to selected producers
to encourage a diversified offer on the Québec market. For more
information, visit www.roselifesience.ca.
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.
SOURCE ROSE LifeScience