I have been invested in Village Farms for several years now. My returns have been poor. However, I like being part of the future so I kept this Pink Sheets company based in Canada for years.
As I am upgrading my portfolio from things that are interesting to things that make money, I needed to sell Village Farms. So yesterday I pulled up “Think or Swim” on my phone and put in an order to sell. I thought I put in an order to sell the whole position, but only sold 1/4 at a 1.80 per share.
This morning the shares are at 2.50.
This morning we have this announcement. Think I will hang on to my shares for a while and start reviewing the financials on this one.
Cheers (Or what ever Pot Smokers say when they light up.)
VILLAGE FARMS INTERNATIONAL AND EMERALD HEALTH FORM JOINT VENTURE FOR LARGE-SCALE GREENHOUSE CANNABIS PRODUCTION
– Transformational Opportunity Will See Conversion of Certain Village Farms’ BC Greenhouse Assets to An Economically Superior Product with Cannabis Production –
– Joint Venture Expects to be the Low-Cost Producer in the Canadian Cannabis Industry –
Vancouver, BC, June 6, 2017 – Village Farms International, Inc. (“Village Farms”) (TSX: VFF) (OTC: VFFIF) and Emerald Health Therapeutics Inc., together with its affiliates (“Emerald”) (TSXV: EMH), today announced that they have entered into a definitive agreement to form a joint venture for large-scale, high-quality, low-cost cannabis production. Under the terms of the agreement, Village Farms will initially contribute a 1.1 million-square foot (25-acre) greenhouse facility in Delta, British Columbia, located on a 50-acre parcel of land (with ancillary buildings) (the “Initial Greenhouse”), which will be converted to ACMPR (Access to Cannabis for Medical Purposes Regulations)-compliant production and, if permitted by applicable law, production for the non-therapeutic adult-use market. Emerald will initially contribute an aggregate of $20 million in cash (of which $2 million was advanced at closing and the remaining $18 million will be advanced in tranches upon satisfaction of certain milestones to be determined by the board of directors of the joint venture) to fund conversion of the Initial Greenhouse and each party will have a 50% ownership stake in the joint venture. (All figures are presented in Canadian dollars.)
Highlights of the Joint Venture Agreement
• 1.1 million square feet of initial potential greenhouse cannabis production (estimated to yield more than 75,000 kg of product annually) upon completion of full licencing and greenhouse conversion;
• Formation of the joint venture is a transformational opportunity for Village Farms that will see the conversion of one of its existing Delta, BC greenhouse assets to grow a substantially more profitable agricultural product;
• Village Farms is one of the largest, most experienced and technically advanced greenhouse growers in North America, with an ingrained culture of low-cost production;
• Formation of the joint venture strategically positions Emerald for rapid production capacity expansion in partnership with world-class greenhouse operators, preparing it for the future non-therapeutic market and existing undersupplied medical cannabis market;
• Emerald has significant cannabis industry experience, including a portfolio of high quality genetics and refined standard operating procedures, with a flawless record of operations under Health Canada’s stringent ACMPR regime;
• The joint venture has the goal to be the lowest-cost cannabis producer in Canada;
• In the future, the joint venture has the potential to have access to up to 4.8 million square feet of greenhouse cannabis production (estimated to yield more than 300,000 kg of product annually), which would supply a considerable portion of the expected future cannabis demand in Canada or for export abroad;
• The joint venture expects its production will address a diverse array of cannabis products, including dried cannabis and quality inputs for extraction-based products, currently the fastest growing segment in the Canadian medical cannabis market and expected to be a meaningful part of the non-therapeutic adult-use market; and,
• Village Farms remains committed to its existing greenhouse produce business and customers.