While there were a number of monster breakouts in the cannabis patch in recent days, one of the most impressive and interesting is found on the chart for Village Farms International Inc (OTCMKTS:VFFIF). Shares blasted to new multi-month highs on a major jump in volume on Monday, ramping as much as 17%. To fill out the story, the company just announced that its 50%-owned joint venture for large-scale, low-cost, high-quality cannabis production, Pure Sunfarms, received from Health Canada the sixth amendment to the cultivation license for its 1.1 million square foot greenhouse in Delta, BC (the Delta 3 facility).
According to the release, “This amendment permits Pure Sunfarms to expand its cannabis production area by approximately 138,000 square feet to a total of approximately 825,000 square feet. With this amendment, the entirety of the first three quadrants of the 1.1 million square foot Pure Sunfarms facility is now licensed for cultivation. The newly licensed area is expected to be fully planted and in production this week.”
Village Farms International Inc (OTCMKTS:VFFIF) promulgates itself as a company that, together with its subsidiaries, produces, markets, and distributes greenhouse-grown tomatoes, bell peppers, and cucumbers in North America.
The company operates in two segments, Produce Business and Energy Business. It also owns and operates a 7.0 megawatt power plant from landfill gas that generates and sells electricity to British Columbia Hydro and Power Authority.
Village Farms International, Inc. markets and distributes its products under the Village Farms brand name to retail supermarkets and fresh food distribution companies, as well as produced under exclusive arrangements with other greenhouse producers.
The company was formerly known as Village Farms Canada Inc. and changed its name to Village Farms International, Inc. in December 2009. Village Farms International, Inc. was founded in 1989 and is headquartered in Delta, Canada.
According to company materials, “Village Farms International, Inc. is one of the largest and longest-operating vertically integrated greenhouse growers in North America and the only publicly traded greenhouse produce company in Canada. Village Farms produces and distributes fresh, premium-quality produce with consistency 365-days a year to national grocers in the U.S. and Canada from more than nine million square feet of Controlled Environment Agriculture (CEA) greenhouses in British Columbia and Texas, as well as from its partner greenhouses in British Columbia, Ontario, and Mexico. The Company is now leveraging its 30 years of experience as a vertically integrated grower for the rapidly emerging global cannabis opportunity through a 50% ownership of British Columbia-based Pure Sunfarms, Corp., one of the single largest cannabis growing operations in the world.”
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As noted above, VFFIF just announced that its 50%-owned joint venture for large-scale, low-cost, high-quality cannabis production, Pure Sunfarms, received from Health Canada the sixth amendment to the cultivation license for its 1.1 million square foot greenhouse in Delta, BC (the Delta 3 facility).
Traders will note 76% piled on for shareholders of the name during the trailing month. Moreover, the listing has registered increased average transaction volume recently, with the past month seeing a bit over 110% beyond its prior sustained average level.
“The Pure Sunfarms cannabis operation continues to execute on plan, steadily expanding production towards its target of reaching full run rate annual production of 75,000 kilograms in the first half of this year,” said Michael DeGiglio, CEO of Village Farms. “As the Canadian cannabis market continues to be challenged by a supply shortage, Pure Sunfarms has already established itself as one of the premier suppliers, with a reputation for industry leading operations and quality, consistency and safety of product. Village Farms, with our decades of experience as a vertically integrated large-scale greenhouse operator, is proud to have played an integral role in Pure Sunfarms’ continuing success.”
At this time, carrying a capital value in the market of $317.08M, VFFIF has a significant war chest ($7.6M) of cash on the books, which is balanced by about $34.9M in total current liabilities. VFFIF is pulling in trailing 12-month revenues of $190.3M. However, the company is seeing declines on the top-line on a quarterly y/y basis, with revenues falling at -7.5%. We will update the story again soon as further details emerge. Sign-up for continuing coverage on shares of $VFFIF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $VFFIF, either long or short, and we have not been compensated for this article.