VFF stock is showing solid buying activities in the early session after Village Farms International Inc (TSX:VFF) (NASDAQ:VFF) announced a new joint venture in Colorado.
Canada based Village Farms International has been one of the most interesting cannabis companies over the past year or so and following its reincarnation as a cannabis grower from a produce grower, its fortunes seem to have changed significantly. The company has formed a range of joint ventures that have allowed it to become a key player in the industry and it announced another one today.
Village Farms Joint Venture
This morning, Village Farms announced that it has signed an agreement with Arkansas Valley Hemp to form a joint venture that will be engaged in CBD extraction and manufacture of CBD hemp. The joint venture is going to be known as Arkansas Valley Green and Gold Hemp LLC and Village Farms International are going to own 60% of the venture.
The joint venture will see the production of hemp in land spanning an area of 120 acres in the Arkansas valley and that gives Village Farms a major presence in the hemp production industry. It has already gone into a hemp joint venture and the combined production area for its hemp production interests would total 920 acres. The market for CBD is growing at a breathtaking pace and Village Farms’ huge presence in the industry could bode well for the company’s future.
VFF stock is up over 3% on the NASDAQ and now trading at $13.69. On the other hand, Village Farms' stock is up 2.80% at $18.35 on the TSX.
VFF Stock Robust Earnings
The stock has gained over 22% since reporting solid first quarterly results on May 10. The company used to grow fruits and vegetable but due to the greenhouses it owns, it became a favorite of the cannabis industry. Village Farms’ joint venture known as Pure Sunfarms with Emerald Health Therapeutics is the reason behind the optimism surrounding the company. Pure Sunfarms’ revenues stood at $10.8 million for the quarter but additionally, its profits came in at $8.6 million, which marks another quarter in which the venture has proven to be profitable.
VFF stock is one of the biggest gainers in the cannabis sector with a jump of 285% since the beginning of this year.
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