– New JV for Colorado Complements
Multi-State Outdoor Hemp Program for Rest of U.S. –
VANCOUVER, May 21, 2019 /CNW/ - Village Farms International,
Inc. ("Village Farms" or the "Company") (TSX:VFF; NASDAQ:VFF) today
announced it has entered into an agreement with Arkansas Valley
Hemp, LLC ("AV Hemp") to form a joint venture for the outdoor
cultivation of high-cannabidiol (CBD) hemp and CBD extraction in
Colorado. The joint venture,
Arkansas Valley Green and Gold Hemp LLC ("Arkansas Valley Green and
Gold"), will be 60%-owned by Village Farms, 35%-owned by AV Hemp,
and 5%-owned by Village Fields Hemp (Village Farms' 65%- owned
joint venture for hemp cultivation and CBD extraction in the U.S.
states other than Colorado). Based in the Arkansas Valley
of Colorado, AV Hemp was
established by the founder of one of Colorado's largest licensed outdoor cannabis
growing operations and real estate developer, specifically to
capitalize on the significant opportunity in hemp-derived CBD.
Arkansas Valley Green and Gold is targeting to be in production
on approximately 120 acres in the Arkansas Valley in 2019,
increasing Village Farms total planned hemp production area for its
two hemp joint ventures for 2019 to more than 920 acres (for all of
which adequate quantities of hemp seed has already been purchased).
Arkansas Valley Green and Gold plans to expand to as much as
500 acres in 2020. Arkansas Valley Green and Gold will initially
cultivate in 2019, with extraction to crude biomass coming online
in early 2020 with plans to expand operations in 2020 to support
Village Farms' vertically integrated strategy.
"This new joint venture is an outstanding opportunity to expand
Village Farms' outdoor hemp cultivation and CBD extraction program
in partnership with an experienced, large-scale outdoor grower in
one of the best growing regions for hemp in one of the most
advanced hemp industries of any state in the country," said
Michael DeGiglio, Chief Executive
Officer, Village Farms. "We expect both Arkansas Valley Hemp
and Village Fields to benefit from each other's extensive know-how,
including specific expertise in outdoor cultivation, as we
collaborate to advance cultural practices and genetics to optimize
plant traits and yields."
One of the first states to allow hemp cultivation in 2012 when
it legalized recreational cannabis, Colorado is at the forefront of hemp
cultivation and extraction. Located along the Arkansas River
approximately 125 miles (200 kilometers) south of Denver, the Arkansas Valley is known for its
fertile land and favorable growing climate. Agricultural
production in the Arkansas Valley benefits from the intensity of
the sunlight due to its elevation of approximately 4,500 feet above
sea level, as well as low humidity levels and an optimal day/night
temperature variation, all of which contribute to plant quality and
yield.
Mr. DeGiglio added, "Village Farms is uniquely positioned for
the significant opportunity in hemp-derived CBD. We are
moving quickly to scale outdoor cultivation to complement our
existing, state-of-the-art greenhouse operations in Texas and further strengthen the foundation
for our national, vertically integrated, consumer packaged strategy
for hemp-derived CBD."
Under the terms of the joint venture agreement, Village Farms
will contribute approximately US$5 million to Arkansas Valley Hemp for start-up
costs and working capital.
Village Fields Hemp Update
Village Fields Hemp has now commenced planting on its more than
800 acres in three states (Virginia, North
Carolina and South
Carolina). All acreage is expected to be planted by
mid-June 2019, with harvesting
expected to commence in July
2019.
The Company, Arkansas Valley Green and Gold and Village Fields
Hemp do not have, and do not intend to engage in, any direct,
indirect or ancillary involvement in the U.S. cannabis industry (as
described in Canadian Securities Administrators Staff Notice
51-352) until it is federally legal to do so.
About Village Farms International, Inc.
Village Farms 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
its 50% ownership of British
Columbia-based Pure Sunfarms Corp., one of the single
largest cannabis growing operations in the world. The Company
also intends to pursue opportunities to become a vertically
integrated leader in the U.S. hemp-derived CBD market, subject to
compliance with all applicable U.S. federal and state laws, Village
Farms has established two joint ventures, Village Fields Hemp and
Arkansas Valley Green and Gold Hemp, for outdoor hemp cultivation
and CBD extraction and plans to pursue controlled environment hemp
production at its Texas greenhouse
operations, which total 5.7 million square feet of production area,
subject to legalization of hemp in Texas.
Cautionary Language
Certain statements contained in this press release constitute
forward-looking information within the meaning of applicable
securities laws ("forward-looking statements"). Forward-looking
statements may relate to the Company's future outlook or financial
position and anticipated events or results and may include
statements regarding the financial position, business strategy,
budgets, litigation, projected production, projected costs, capital
expenditures, financial results, taxes, plans and objectives of or
involving the Company. Particularly, statements regarding future
results, performance, achievements, prospects or opportunities for
the Company, Pure Sunfarms, Village Fields, the greenhouse
vegetable industry or the cannabis and hemp industries are
forward-looking statements. In some cases, forward-looking
information can be identified by such terms as "outlook", "may",
"might", "will", "could", "should", "would", "occur", "expect",
"plan", "anticipate", "believe", "intend", "estimate", "predict",
"potential", "continue", "likely", "schedule", "objectives", or the
negative or grammatical variation thereof or other similar
expressions concerning matters that are not historical facts.
Although the forward-looking statements contained in this press
release are based upon assumptions that management believes are
reasonable based on information currently available to management,
there can be no assurance that actual results will be consistent
with these forward-looking statements. Forward-looking statements
necessarily involve known and unknown risks and uncertainties, many
of which are beyond the Company's control, that may cause the
Company's or the industry's actual results, performance,
achievements, prospects and opportunities in future periods to
differ materially from those expressed or implied by such
forward-looking statements. These risks and uncertainties include,
among other things, the factors contained in the Company's filings
with U.S. and Canadian securities regulators, including as detailed
in the Company's annual information form and management's
discussion and analysis for the year-ended December 31, 2017.
When relying on forward-looking statements to make decisions,
the Company cautions readers not to place undue reliance on these
statements, as forward-looking statements involve significant risks
and uncertainties and should not be read as guarantees of future
results, performance, achievements, prospects and opportunities.
The forward-looking statements made in this press release only
relate to events or information as of the date on which the
statements are made in this press release. Except as required by
law, the Company undertakes no obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.
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SOURCE Village Farms International, Inc.