Village Farms, Emerald Health Therapeutics receive cannabis cultivation license

Village Farms, Emerald Health Therapeutics receive cannabis cultivation license

Village Farms is best known for its greenhouse produce.

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March 5, 2018
Press Release
Business

Emerald Health Therapeutics and Village Farms International announced in a press release 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.

“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.”

“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.”

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.