– Village Farms Will Contribute
to Reshaping the Future of Recreational Cannabis in the Netherlands, the First Major
European Country to Permit Large Scale Cultivation and Distribution
of Recreational Cannabis –
VANCOUVER, BC, Aug. 9, 2022
/PRNewswire/ - Village Farms International, Inc. ("Village
Farms" or the "Company") (NASDAQ: VFF) today announced
Leli Holland B.V. ("Leli Holland")
has been granted the tenth and final license to cultivate
cannabis legally in the
Netherlands (the "License") under the Dutch Closed Supply
Chain Experiment program (the "Dutch Program"), which is expected
to be commence operating next year. Subsequently, Village Farms
completed acquisition of 85% of privately held Leli Holland under its previously announced
purchase option agreement, enabling Village Farms to directly
participate as a Netherlands-based
cultivator and distributor of cannabis in the Dutch Program, under
which the Netherlands will become
the first major European country to permit large scale cultivation
and distribution of recreational cannabis.
The Dutch Program is intended to evaluate determine whether and
how controlled cannabis can be legally supplied to existing
retailers (known as "coffee shops") and what the effects of such
would be, specifically in the context of concerns around
public order and safety, public health and crime amidst the current
Dutch cannabis policy, which tolerates the sale and use of cannabis
for recreational purposes but prohibits production and distribution
to coffee shops.
"We are so proud to come home to the Netherlands as one of
just ten companies that will be licensed to cultivate recreational
cannabis and distribute high quality cannabis products to coffee
shops in the Netherlands," said
Michael DeGiglio, CEO Village Farms.
"Village Farms has a long, rich history in the Netherlands and majority ownership of Leli
will allow for direct and meaningful participation in the Dutch
Program and contribute to reshaping the future of recreational
cannabis in the Netherlands.
Village Farms' Vice President of European Cannabis, Orville Bovenschen, born and raised in
the Netherlands, will lead our
cannabis venture there, splitting his time between our head office
in Orlando and the Netherlands. We look forward, to bringing
our deep expertise and decades of experience in the design,
construction, start up and operation of high-performance, low-cost
controlled environment agriculture facilities to the Dutch cannabis
industry."
"For decades, the Netherlands
has been a global pioneer in the decriminalisation of cannabis and
the Dutch Program is an historic, positive step in the evolution of
the country's cannabis regulation that will make it the first major
European country to permit large scale recreational cultivation.
Utilizing the existing retail sales channel will benefit Dutch
consumers greatly, and very much look forward to supplying these
consumers with high quality, safe and tested cannabis, in the
participating jurisdictions. We expect that our Dutch roots,
combined with our deep Canadian experience, will contribute to
a successful pilot program, and the potential of the program
to be expanded nationally."
Mr. DeGiglio added, "As cannabis sentiment shifts favorably, we
are pursuing, and will continue to pursue, other European
opportunities as they unfold. Our direct participation in the Dutch
Program, leveraging our position as a top Canadian Licensed
Producer with EU-GMP certification, strongly positions Village
Farms for success in these markets as they legalize."
About the Netherlands Dutch
Closed Supply Chain Experiment
The Dutch Program is scheduled to operate for a minimum of four
years with the potential for national expansion. The total supply
requirement for the ten approved producers participating in the
Dutch Supply Chain Experiment is specified by the Netherlands government to be approximately
a minimum of 65,000 kilograms of dried flower annually. A brief
description of the Dutch Program can be found at
https://www.government.nl/topics/drugs/controlled-cannabis-supply-chain-experiment.
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 the
best-selling brands.
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 the Netherlands in 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 (including internationally as a result of
our acquisition of Leli Holland),
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 related
to international expansion through our investment in Leli Holland; 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.
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SOURCE Village Farms International, Inc.