VFF stock is gaining momentum in early session after Village Farms International Inc (TSX:VFF) (NASDAQ:VFF) announced that Governor Greg Abbott has signed into law Texas House Bill 1325.
Village Farms International is among the biggest companies in the hemp cultivation industry and remains one of the oldest existing vertically integrated greenhouse cultivators in North America. Additionally, it is the only greenhouse produce company in Canada that is listed on the capital markets.
Ahead of the Game
Today, the company received a major boost after it was announced that the Governor of Texas Greg Abbott signed Texas House Bill 1325, legalizing the cultivation of hemp and allowing companies to process and create products derived from hemp. In anticipation of this, Village Farms previously converted half of its facility in Permian Basin into a hemp cultivation site.
Although the State of Texas has not yet given a timeline regarding the awarding of licenses, this is an important development for Village Farms International. CEO Michael DeGiglio was delighted with the development and stated, “The Governor’s signing of this bill into law formalizes a significant opportunity for Village Farms as a first mover in the Texas hemp industry and will allow us to capitalize on the expected demand for premium-grade hemp.”
VFF stock is up 2.50% and now selling at $13.77 on the Nasdaq. On the Canadian side, Village Farms stock is trading at $18.32, up by 2.35%.
About Village Farms
Village Farms International focuses on greenhouse produce and wasn’t always part of the cannabis industry. However, upon its joint venture with Emerald Health Therapeutics (TSXV:EMH), called Pure Sunfarms, Village Farms became firmly planted in the industry, converting much of its greenhouse space for cannabis cultivation.
Its annualized production by mid-2019 is all set to hit 75,000 kilos, and another plant is going to be built soon, which could take double annual production within the next two years. This is a promising venture for Village Farms, considering the potential of the recreational cannabis market in Canada. However, it is Village Farms’s focus on the hemp production joint venture in the United States that could create a lot of interest among industry watchers in the months to come.
VFF stock is one of the most popular cannabis stock gainers this year with a jump of a whopping 270%.
Featured image: DepositPhotos © AndreyPopov