Village Farms International Announces Expansion of Pure Sunfarms’ Licensed Cannabis Production Area to 825,000 Square Feet, Further Increasing One of the Largest Production Capacities in Canada.
Lang titshorisont, men nyttig info uansett:)
(Limer inn det som angår Village Farm Int)
This little-known pot stock has its eyes on the Nasdaq
In 2019, uplisting is expected to remain a hot topic, with a number of lesser-known pot stocks attempting to make the move to more reputable exchanges. Just over a week ago, one of these relative unknowns announced via press release that it, too, was intending to uplist.
On Jan. 21, British Columbia-based Village Farms International (NASDAQOTH: VFFIF), an OTC-listed pot stock with a market cap of just shy of $240 million, announced that it was filing paperwork to uplist to the Nasdaq.
If you haven’t heard of Village Farms International before, at least in the context of being a cannabis player, don’t be surprised. That’s because the company isn’t an independent player. Rather, it formed a joint venture with Emerald Health Therapeutics (NASDAQOTH: EMHTF) – a marijuana stock investors are more likely to be familiar with – in 2017. This joint venture, known as Pure Sunfarms, is currently retrofitting 1.1 million square feet of greenhouses that Village Farms had been using for vegetable growing. It will be used for cannabis production moving forward. Since Village Farms already had the greenhouses, relying on Emerald Health to handle the retrofit was a means to save time and money.
According to an update from Village Farms and Emerald Health this past week, 825,000 square feet of Pure Sunfarms has now been licensed by Health Canada, the regulatory agency responsible for assigning cultivation licenses and sales permits. That’s about 80% of the way to the 1.03 million square feet the duo will be devoting to growing space. The remaining 69,000 square feet will be utilized for extraction purposes.
It’s also worth noting that Emerald Health and Village Farms have the option to put 3.7 million square feet of adjacent leased land to work in terms of capacity expansion. It’s unclear if this’ll happen, but if it did, it would easily make Pure Sunfarms a top-10 producer.
Here’s what you may not know about Village Farms
However, it’s also important for investors to understand that, unlike most marijuana growers, Village Farms has a fallback. Yes, it lost revenue that had previously been devoted to vegetable growing at its Delta-3 greenhouse (which is what’s being retrofitted for pot production), but the company still managed to generate $111.2 million in sales through the first nine months of 2018 at its other greenhouses.
Admittedly, vegetable growing isn’t traditionally a high-margin business, and it does put Village Farms at the mercy of wholesale vegetable pricing. Nevertheless, the company has generated consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) of $1.4 million through nine months. That’s not a lot considering its $111.2 million in sales, but it’s still a positive figure, even with spending associated with Pure Sunfarms and the lost revenue from the Delta-3 greenhouse. Should the company’s cannabis venture flop, which is probably unlikely, it still has a viable business model to fall back on.
But before you get too excited, also keep in mind that Pure Sunfarms’ 1.03 million square feet of growing capacity is “only” expected to yield 75,000 kilograms annually at its peak. Compared to other growers, this isn’t a particularly impressive yield, which leads me to believe that Emerald Health’s and Village Farms’ growing costs on a per-gram basis may be on the high end of the industry average.
What’ll really be intriguing and help make or break Village Farms’ valuation will be its ability to further penetrate the cannabidiol (CBD) and hemp markets, especially with the Farm Bill having been signed into law by President Trump in December. CBD is the nonpsychoactive cannabinoid best known for its perceived medical benefits. Global CBD sales are expected to hit as much as $22 billion by 2022, with the legalization of hemp opening the door to a fast-growing industry in the United States.
For the time being, investors would be encouraged to add Village Farms International to their watch lists and monitor its progress from the safety of the sidelines.
Noen som kan dele denne?
" Levine’s been in the legalization game since 2002, and he said voter support can end prohibition this year through the STATES Act, which exempts legalization states from the 1972 Controlled Substances Act. While it’s cliché to say legalization is “always 10 years away,” Levine says it’s here. In the below Q&A with Leafly, Levine points to some key factors:
- 10 adult-use legalization states, plus Washington, DC
- 33 medical legalization states
- hundreds of thousands of American jobs on the line
- billions and billions of dollars in domestic economic impact
- polling at 61% for legalization, 75% for federal noninterference, 90% for medical
“We got an issue here that people are starting to care passionately about that can swing elections,” he tells Leafly."
Village Farm Internasjonal NASDAQ listing godkjent.
VFF +11% på nyheten. Poppet nettopp ATH $10+
Eg har (VFF) på toronto Spiller ikke stor rolle; bare hvilken valutta du vil være eksponert mot!
Hvor kjøper dere fra DNB Market ? Nordnet? Kan det kjøpes både via Nordnet Zero Konto og vanlig aksjekonto ? Aksjesparekonto går vell ikke.
Ville brukt Zero på Nordnet for utenlandske aksjer.
Village Farms International’s Common Shares to Commence Trading on Nasdaq on Thursday, February 21, 2019
glad for å se at VFF har blitt en yndling blant flere her. har nevnt den noen ganger ila 2017/2018. var kjedelig i fjor men dette året har startet veldig bra. ikke umulig vi ser 20 CAD ila de neste ukene.
For de som vil se på et annet case, som har noen likheter til VFF (dog helt unikt) - sjekk ut Pyxus International (Disclaimer: jeg har kjøpt mye der ila Des/Jan)
Skal sjekke ut VFF var spot-on så eg skal sjekke Pyxus ut ASAP.
Ja det får’n si - gikk veldig bra Var redd det kunne komme en “sell on the news”-effekt men det slapp vi heldigvis. Spent på om vi tar ut 20CAD fremover.
Har godt over doblet pengene ja Hva med deg?
Kjøpte litt høyt (rundt 8 første kjøp) men fikk snitta ned til 7 når den korrigerte. Tar vi ut 14 har eg min første dobling Mtp potensialet VFF har så ruger eg hardt på de aksjene jeg har Hvem vet hvor den står om et par år. Liker at free-floaten er latterlig lav; kanskje vi får et Tilray run hvis vi brenner nok shortere