VFF stock is falling along with the broader weakness in the cannabis sector on Friday. The morning, Village Farms International (TSX:VFF) (NASDAQ:VFF) issued an operational update on Pure Sunfarms.
Operational Details
Village Farms International Inc has been one of the most interesting companies in the cannabis industry for quite some time now, and the company has performed impressively in 2019 far.
Today, the company announced another important milestone that will certainly excite investors about the company’s future prospects. Village Farms announced that its joint venture Pure Sunfarms, in which it owns a 50% stake, has managed to hit its optimum production capability of 75,000 kilos of dried cannabis. The joint venture in question aims to produce high-quality cannabis at low costs at the 1.1 million square foot greenhouse located in Delta, BC, Canada.
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Pure Sunfarms is also trying to develop extraction capabilities, and Village Farms International announced that the operation would be started at some point in 2019. At the same time, the venture's Delta facility continues in its conversion into a cannabis producing facility. Village Farms expects it to be operational by the middle of 2020. It will also have the capability of producing 75,000 kilos of cannabis a year.
As far as VFF stock is concerned, it has been on an excellent run this year so far, skyrocketing by as much as 250% over the course of the first six months. One of the biggest developments for the company was the joint venture Pure Sunfarms, in which it collaborated with Emerald Health Therapeutics (TSXV:EMH) (OTCQX:EMHTF), and since then the company has not looked back. In February, it inked a supply agreement with the province of Ontario in Canada, and once it got listed on NASDAQ, the stock continued to fly.
The CBD market is the next battleground in the cannabis industry, and the company is determined to be an important player in that industry as well. It has also expanded its hemp growing capabilities and has announced that it is going to get into the hemp-based CBD product market as well.
At the time of writing, VFF stock is trading lower 6.78% at $9.36 on the NASDAQ. The stock has fallen about 48% from its yearly peak price of $18.10.
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