VANCOUVER, Feb. 8, 2019 /CNW/ - Village Farms International, Inc. ("Village Farms" or the "Company") (TSX:VFF) (OTC:VFFIF) today announced its cannabis joint venture, Pure Sunfarms Corp. ("Pure Sunfarms"), through a competitive process, has been selected by, and has entered into a supply agreement with, the Ontario Cannabis Retail Corporation ("OCRC"), operating as the Ontario Cannabis Store ("OCS"), to supply the OCS with Pure Sunfarms-branded cannabis products for the non-medical market in the Province of Ontario.
"Pure Sunfarms' supply agreement with the OCS – our first with a provincial government distributor – is a tremendous step forward for our organization, putting our branded, quality products on the OCS web site and, soon, retailers' store shelves, and into the hands of our consumers," said Mandesh Dosanjh, President and Chief Executive Officer, Pure Sunfarms. "The confidence of the OCS in Pure Sunfarms' ability to reliably supply safe, consistent, quality products is a testament to the hard work of the entire Pure Sunfarms team who have been relentless in advancing our organization to this stage. We are thrilled to be working with the OCS in Canada's most populated province and look forward to finalizing additional supplier agreements for other provinces and growing the Pure Sunfarms brand nationally."
"With its 1.1 million square foot cannabis facility steadily approaching full production, Pure Sunfarms' selection as a supplier by the OCS is a tremendous validation of the organization's capabilities as and an important step towards Pure Sunfarms becoming a premier vertically integrated supplier and scale player in the Canadian market," said Michael DeGiglio, Chief Executive Officer, Village Farms. "I have been very impressed by the leadership and strategic decision-making that Pure Sunfarms' President and CEO, Mandesh Dosanjh, has demonstrated in balancing near-term revenue and profitability with the longer-term value generated by building the Pure Sunfarms brand and strong relationships with provincial government distributors. With extraction capabilities expected to be in place by mid-2019, Pure Sunfarms is well positioned to evolve with the market and expand its business with the OCS and others into oils, and other products such as edibles when they are legalized."
With this supply agreement in place, Pure Sunfarms can commence shipments to the OCS upon receipt of its packaging and processing licenses from Health Canada, which it continues to expect in the near term, subject to Health Canada's own timelines.
Pure Sunfarms has been and continues to pursue additional supply agreements with other provincial government distributors and private retailers as it continues to sell directly to other Licensed Producers to capitalize on favorable spot market pricing amidst the continuing cannabis supply shortage across Canada.
Pure Sunfarms recently completed conversion of all of the growing area – more than 1 million square feet – at its 1.1 million square foot greenhouse in Delta, British Columbia, making it one of the largest single cannabis growing facilities in the world. The first three quadrants of that facility are licensed for cultivation, with the fourth quadrant currently under Health Canada licensing review. Pure Sunfarms expects to be in production in all four quadrants of this facility in the first quarter of 2019 and to reach full run rate annual production of approximately 75,000 kilograms by mid-2019.
About Village Farms International, Inc.
Village Farms International, Inc. 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 Canadafrom more than nine million square feet of Controlled Environment Agriculture (CEA) greenhouses in British Columbiaand 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 50% 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 and CBD markets, subject to compliance with all applicable U.S. federal and state laws.
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 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 securities regulators, including as detailed in the Company's annual information form and management's discussion and analysis for the year-ended December 31, 2017.
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.
SOURCE Village Farms International, Inc.
For further information: Lawrence Chamberlain, Investor Relations, LodeRock Advisors, (416) 519-4196, [email protected]
Related Links
www.villagefarms.com
