VFF stock has been recovering this week after the recent slump amid broader weakness in the cannabis stock.
Let's take a look at the recent developments from Village Farms International (TSX:VFF) (NASDAQ:VFF).
Village Farms International entered the cannabis space around two years ago, and since then, it has become an important member of the growing cannabis industry.
In a new development today, the company announced that the directors who had been nominated back on May 21 this year were all voted as directors in the company’s annual general meeting that was held today.
Village Farms International is a company with a difference when it is seen in the context of the cannabis industry. Around two decades ago, the company was involved in the production of vegetables like cucumbers and peppers. However, once the formal cannabis industry exploded, the company decided to pivot and move into the space back in 2017.
Partnership with Emerald Health Therapeutics
The company entered into a partnership with Emerald Health Therapeutics, and over the course of the past two years, that company has slowly become one of the more interesting participants in the cannabis industry. The name of its joint venture is Pure Sunfarms. Village Farms contributed a mammoth 1.1 million square foot of greenhouse space to the venture.
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As everyone knows, production volume is perhaps the most important attribute of a successful cannabis company, and Pure Sunfarms is expected to produce a significant quantity of the product.
VFF stock is up 4.24% and now selling at $11.31 on the Nasdaq. On the Canadian side, Village Farms stock is trading at $14.86, up by 4%.
Production Capacity
While it can produce 75,000 kilos of cannabis every year, Village Farms announced earlier this year that is going covert another greenhouse soon, thereby doubling the company’s output. Considering the escalating demand for cannabis in the adult recreational use space, the company should not have any difficulty in selling its product.
The company is set to enter the hemp-based CBD market in the United States as well, and Village Farms wants to grow, extract, and produce the product.
VFF stock has tumbled 35% from March highs. Nevertheless, the stock is one of the most popular cannabis stock gainers this year with a jump of a whopping 211%.
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Featured image: DepositPhotos © eskaylim
