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].

Company Simultaneously Announces Transformative Transaction to Privatize Certain Fresh Produce Segment Assets and Focus Resources on Global Cannabis Growth Opportunities Canadian Cannabis Delivers Strongest EBITDA Performance in 3 Years; Maintains Top 3 Market Share Nationally Despite Reduction in Lower-Margin Branded SalesCanadian Cannabis Net Income and Adjusted EBITDA Increased 258% and 64% Year-over-YearInternational Medical Export Cannabis Sales Increased 285% Year-Over-YearCommenced Cannabis Sales in ...

Core Viewpoint - Village Farms International, Inc. has entered into a definitive agreement to privatize certain assets of its Fresh Produce segment, creating a new joint venture, Vanguard Food LP, with private investment firms, allowing Village Farms to focus on its international business and cannabis opportunities [1][2][6]. Group 1: Transaction Overview - Village Farms will receive $40 million in cash and a 37.9% equity ownership interest in the newly formed Vanguard [1][5]. - The transaction involves the privatization of Village Farms' Texas-based greenhouse assets and produce-related intellectual property, with operational control transferred to Vanguard [4][5]. - The deal is expected to close in the second quarter of 2025, pending the satisfaction of closing conditions [4]. Group 2: Strategic Implications - Vanguard's growth strategy will leverage Village Farms' expertise in cultivation, sales, and distribution to execute a roll-up strategy of other North American produce brands [2][6]. - The partnership aims to create a premier branded consumer packaged goods (CPG) company focused on healthy lifestyles and sustainable farming practices [2][6]. - Village Farms will retain ownership of its Canadian cultivation assets and continue to supply fresh produce to Vanguard through service agreements [8][9]. Group 3: Leadership and Management - Charlie Sweat, founder of Sweat Equities, will serve as Chairman of Vanguard's Board, while Michael A. DeGiglio of Village Farms will be Interim CEO [3]. - The management team is expected to drive growth through mergers and acquisitions, capitalizing on shifting consumer preferences towards healthier food options [7][6]. Group 4: Future Prospects - Village Farms is positioned to expand its cannabis operations while allowing its fresh produce business to thrive independently [6][7]. - The transaction is seen as a significant step in unlocking long-term value for both Village Farms and Vanguard, with a focus on enhancing shareholder value [6][7].

Company Overview - Village Farms International, Inc. is a vertically integrated supplier focused on high-value, high-growth plant-based Consumer Packaged Goods, leveraging decades of experience in Controlled Environment Agriculture [4] - The company is a leading fresh produce supplier in the US and Canada and is expanding into high-growth opportunities in the cannabis and CBD markets [4] Cannabis Operations - In Canada, the company's subsidiary Pure Sunfarms is one of the largest cannabis operations globally and a top-selling brand [5] - Village Farms owns 80% of Rose LifeScience, a leading cannabis products commercialization expert in Québec [5] - The company exports medical cannabis from its EU GMP certified facility in Canada to various international markets, including Germany, the UK, Israel, and Australia [6] US Market Strategy - Village Farms plans to enter the US high-THC cannabis market, leveraging its extensive greenhouse operations in West Texas and expertise from Pure Sunfarms [7] Clean Energy Initiatives - Village Farms Clean Energy, in partnership with Terreva Renewables, generates clean energy from landfill gas, significantly reducing greenhouse gas emissions in Vancouver [8]