Village Farms International (VFF.T) announced today that its joint venture Pure Sunfarms received Health Canada’s approval to open its 65,000 square foot processing centre in its Delta 3 greenhouse facility.
The expansion of the processing centre has been designed with European Union GMP compliance and certification requirements in mind, which the company is presently chasing. The facility and its production capacity can serve both the Delta 2 and 3 greenhouse facilities, with a combined production area of 2.2 million square feet at full production.
“The approval of this additional processing space enables Pure Sunfarms to enhance our operations and quality processes to further support our commitment to providing our customers with high-quality products at a great price. Pure Sunfarms expects to begin to realize the benefits of this new space in the coming quarter, allowing us to build on our strong performance in the Canadian markets we serve,” said Mandesh Dosanjh, president and CEO, Pure Sunfarms.
Village Farms reported Pure Sunfarms as the top-selling brand of dried flower with the Ontario Cannabis Store (OCS) by both metrics of dollars and kilograms solid for the year to date ending February 29, 2020, pulling in a 13.5% market share by kilograms sold. Also, their Afghan Kush and White Rhino strains were two of the top four strains by dollars and kilograms sold in the same time period.
This continues a pattern of success, because Pure Sunfarms was the top performing brand for dried flower by both of the aforementioned metrics at the OCS for the three-month period ending December 31, 2019, with 13% market share.
Health Canada’s approval of the additional processing area in Delta permits Pure Sunfarms to begin operation of:
- 11 additional drying rooms utilizing advanced drying technology and processes to further enhance the quality of Pure Sunfarms product;
- 5 additional packaging rooms;
- 2 additional testing areas;
- 6 additional storage areas; and,
- 7 extraction rooms with equipment capable of processing 35,000 kilograms of biomass annually.
Village Farms also announced the launch of Pure Sunfarms large-format 28 gram (1 ounce) high quality cannabis product. The 28-gram pack is now available for British Columbians to purchase at online BC Cannabis Stores, and they’re intending on pushing it out to retailers soon. In Ontario, it’ll be available online at the OCS in early April with retail to follow.
Earlier this month, Village Farms entered into an agreement wherein Beacon Securities Ltd will underwrite and purchase 3,125,000 common shares of the company at $3.20 per share for $10 million. The company has also granted the underwriter an over-allotment option to purchase up to 15% of the offered shares sold towards the offering at the issue price, exerciseable up to 30 days after offering’s closure, which is slated for March 24, 2020.
The offered shares will be available in each of the provinces, except for Quebec, as per the company’s base shelf prospectus dated June 20, 2019, which can be found on SEDAR.
Good luck if you do go looking. The site looks and operates like it hasn’t been updated since 1997.
Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.
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