Village Farms International Announces Closing of Transaction to Privatize its Fresh Produce Business

Core Viewpoint - Village Farms International has successfully closed a transaction to privatize the majority of its fresh produce business, positioning itself as a leader in the global cannabis industry with a net cash position and significant greenhouse assets [1][2]. Company Overview - Village Farms is a large-scale, vertically-integrated supplier of high-value, plant-based Consumer Packaged Goods, leveraging decades of experience in Controlled Environment Agriculture [3]. - The company has transitioned from being a leading fresh produce supplier to focusing on high-growth cannabinoid opportunities internationally [3]. Cannabis Operations - In Canada, Pure Sunfarms, a wholly-owned subsidiary, is one of the largest cannabis operations globally, with 2.2 million square feet of greenhouse production and recognized as a low-cost producer [4]. - The company has an additional 2.6 million square feet of greenhouse capacity in Canada for future expansion and holds an 80% stake in Rose LifeScience, a leader in cannabis product commercialization [4]. International Expansion - Village Farms is targeting emerging legal cannabis markets with significant growth potential, exporting medical cannabis to countries such as Germany, the UK, Israel, Australia, and New Zealand [5]. - The company is expanding its export business and investing in international production assets, including a license to grow and distribute recreational cannabis in the Netherlands [5]. U.S. Market Strategy - Village Farms plans to enter the U.S. THC market through various strategies, utilizing its Texas-based greenhouse assets, which include 2.2 million square feet of existing capacity and 950 acres of unoccupied land for future expansion [6]. Renewable Energy Initiative - Village Farms Clean Energy, in partnership with Terreva Renewables, generates renewable natural gas from landfill gas, significantly reducing greenhouse gas emissions in Vancouver [7]. Joint Venture and Future Plans - The company holds a 37.9% equity stake in Vanguard Food LP, which aims to create a premier branded CPG foods company through acquisitions and expansion of its product offerings [8].