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– Unmatched Experience and Expertise and
Optimized Facility Design Will Support Continuous Production and
Consistent Quality and Supply –
VANCOUVER, March 5, 2018 /CNW/ - Village Farms
International, Inc. (Village Farms) (TSX:VFF) (OTCQX:VFFIF) and
Emerald Health Therapeutics, Inc. (Emerald) (TSXV: EHT; OTCQX:
EMHTF) today announced that Health Canada has issued a Cultivation
Licence for their co-owned Delta 3
greenhouse operation (the "Joint Venture") under Canada's Access to Cannabis for Medical
Purposes Regulations ("ACMPR"). This optimally-designed 1.1 million
ft2 cannabis growing facility is located in one of the
best growing climates in Canada in
Delta, BC, and is conservatively
projected to produce 75,000 kg of quality cannabis annually at full
production.
Village Farms and Emerald aim for the Joint Venture to be one of
the most consistent and reliable suppliers of quality cannabis
products to wholesalers, distributors and retailers across
Canada and internationally, with
the goal to be the low-cost cannabis Canadian producer at an all-in
production cost of less than $1.00
per gram at full production.
The Joint Venture will immediately begin cultivating cannabis in
the Delta 3 greenhouse following
the transfer of existing starter plants from Emerald and expects to
receive its Sales License under ACMPR by July 1, 2018.
"Growing any agricultural crop on a large scale and repeatedly
delivering expected quantities and consistent quality, with full
regulatory compliance, at a competitive price is an extremely
challenging proposition for even the most experienced agricultural
producers. The goal is for the Joint Venture to set the
standard in this regard in the Canadian cannabis industry and
establish itself as a preferred supplier for both the short- and
long-terms," said Michael DeGiglio,
CEO, Village Farms International. "In addition to production
ramp-up, in 2018 the Joint Venture will focus on product
development and developing its marketing strategy to become a
vertically integrated leader in the Canadian cannabis market."
"Our Joint Venture is well positioned to be a leading supplier
in the imminent legal adult-use Canadian cannabis market, with
potentially significant benefit to each of our companies and our
shareholders," said Avtar Dhillon,
MD, Executive Chairman of Emerald. "With Emerald's in-depth
cannabis expertise, Village Farms' know-how based on innumerable
crop cycles over 30-years of large-scale greenhouse growing, and
working with global agricultural leaders and high-tech facilities
and systems experts, we configured this greenhouse for continuous
weekly harvesting year-round, maximum operating efficiencies, and
flexibility to adapt to an evolving market. We are accomplishing
this on a very capital-efficient basis."
The Joint Venture is converting the Delta 3 greenhouse operation to cannabis
production with meticulous attention to the growing environment and
systems, processing areas, and production ramp up, with a
particular focus on management of climate and contaminants,
optimizing yield, maximizing efficiencies, and achieving continuous
year-round production. Key elements of the design, conversion, and
operations include:
- Growing system with automation proven in different crops to
provide optimal efficiencies;
- Industry-leading HVAC systems reflecting hundreds of aggregate
years of climate management experience, with technically advanced
data systems;
- High-tech light deprivation and light supplementation systems
with individual control of over 15 growing zones within the 1.1
million ft2 footprint;
- Fully automated 90,000 square feet nursery capable of supplying
Delta 3 (as well as the 1.1
million ft2 Delta 2
facility should the Joint Venture exercise its option to purchase
that facility, as described below);
- State of the art drying, trimming and packaging areas;
- Core upgrades to facility infrastructure;
- Use of an established labour force and proprietary labour
tracking systems; and,
- Secure supply of low-cost electricity from BC Hydro sufficient
to power Delta 3 at full
production (and, if required, to power the Delta 2 facility at full production).
Conversion of the first 250,000 ft2 section of the
1.1 million ft2 Delta 3
greenhouse to cannabis production is substantially complete and is
expected to commence production in April
2018. Senior growing and operational personnel, including
the established team transferred from Village Farms, are in place
for production ramp-up. Conversion of the remainder of the
1.1 million ft2 is underway and the entire facility is
expected to be in production in 2019.
The Joint Venture holds options on two additional
state-of-the-art greenhouses owned by Village Farms (Delta 2 and Delta 1, with 1.1 million ft2 and
2.6 million ft2 of growing capacity, respectively).
Exercising these options would expand the Joint Venture's
production facility to 4.8 million ft2 and make it one
of the largest cannabis producers in Canada.
About Emerald Health Therapeutics
Emerald Health Therapeutics, Inc. (TSXV: EMH; OTCQX: EMHTF)
operates through Emerald Health Therapeutics Canada Inc. ("EHTC"),
a wholly owned subsidiary and Licensed Producer under Canada's Access to Cannabis for Medical
Purposes Regulations. Through EHTC, Emerald is authorized to
produce and sell dried cannabis and cannabis oil for medical
purposes. It operates an indoor facility in Victoria, BC, and is building a 500,000
ft2 greenhouse on 32 acres in Metro Vancouver, with
expansion potential to 1 million ft2 to serve the
anticipated legal Canadian adult-use cannabis market starting in
2018. Emerald owns 50% of a Joint Venture with Village Farms
International, Inc. that is converting an existing 1.1 million
ft2 greenhouse in Delta,
BC to grow cannabis. Emerald's team is highly experienced in
life sciences, product development and large-scale agribusiness.
Emerald is part of the Emerald Health Group, which is broadly
focused on developing pharmaceutical, botanical and nutraceutical
products that may provide wellness and medical benefits by
interacting with the human body's endocannabinoid system.
About Village Farms International, Inc.
Village Farms is one of the largest producers, marketers, and
distributors of premium-quality, greenhouse-grown fruits and
vegetables in North America. The
food our farmers grow, along with other greenhouse farmers under
exclusive arrangements are all grown in environmentally friendly,
soil-less, glass greenhouses. The Village Farms® brand of fruits
and vegetables is marketed and distributed primarily to local
retail grocers and dedicated fresh food distributors throughout
the United States and Canada. Since its inception, Village Farms has
been guided by sustainability principles that enable us to grow
food 365 days a year that not only feeds the growing population but
is healthier for people and the planet. Village Farms is Good for
the Earth® and good for you.
Cautionary Language
Certain statements in this press release may constitute
forward-looking statements within the meaning of applicable
securities laws. Forward-looking statements include, but are not
limited to, statements concerning: (i) the Offering; (ii) the use
of the proceeds of the Offering; (iii) results of the completion of
the Offering; and (iv) the Company's financial position in the
future. Forward-looking statements generally can be identified by
the use of forward-looking terminology such as "outlook",
"objective", "may", "will", "expect", "intend", "estimate",
"anticipate", "believe", "should", "plans" or "continue", or
similar expressions suggesting future outcomes or events. Such
forward-looking statements reflect management's current beliefs and
are based on information currently available to management.
Forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from those
contemplated by such statements. Such forward-looking statements
are subject to risks and uncertainties that may cause actual
results, performance or developments to differ materially from
those contained in the statements. Although the Company believes
that the expectations reflected in its forward-looking information
are reasonable, undue reliance should not be placed on
forward-looking information because the Company can give no
assurance that such expectations will prove to be correct. In
addition to other factors and assumptions which may be identified
in this press release, assumptions have been made regarding and are
implicit in, among other things, the timely receipt of required
regulatory approvals. Details of the risk factors relating to the
Company and its business are discussed under the heading "Risk
Factors" set out in the Company's annual information form and
management's discussion and analyses for the year ended
December 31, 2016, and for the three
and nine months ended September 30,
2017, which are available electronically at www.sedar.com.
Actual results may differ materially from any forward looking
statements. Although the Company believes that its forward-looking
statements contained in this press release are based upon
reasonable assumptions, you cannot be assured that actual results
will be consistent with these forward-looking statements. These
forward- looking statements are made as of the date of this press
release, and other than as specifically required by applicable law,
the Company does not assume any obligation to update or revise them
to reflect new information, events or circumstances.
SOURCE Village Farms International, Inc.