Company behind huge Delta cannabis greenhouse raising $171 million

Village Farms also has big plans for entry into U.S. market

Village Farms notes its Pure Sunfarms operation is one of the single largest cannabis operations in the world | Photo: Sandor Gyarmati/Delta Optimist

A company, which has among its assets a large-scale cannabis greenhouse in East Ladner, last week announced it is raising $171 million by selling shares.

Village Farms International announced that it has entered into definitive agreements with certain institutional investors for the purchase and sale of an aggregate of 10,887,097 common shares in a registered direct offering.

Each share is being sold at a public offering price of US$12.40, which works out to over CAD$15 per share.

The company says that closing of the offering is subject to customary closing conditions, including applicable stock exchange approvals, and is expected to close on or about Jan. 20, 2021. 

The net proceeds from the offering are intended to be used for general working capital purposes. 

Prior to the legalization of cannabis in Canada, Village Farms formed a partnership with Emerald Health Therapeutics, called Pure Sunfarms, to grow cannabis at the Delta greenhouse facility, eventually taking over whole ownership. 

The plan is to have 2.2 million square feet of production space at the facility converted to cannabis.

Having already converted 1.1 million square feet, Pure Sunfarms is converting a second 1.1 million square feet, which is expected to double annual output capacity to 150,000 kilograms.

The company also holds an option on an additional greenhouse facility, owned and operated by Village Farms, which could further increase the total production area by approximately 2.6 million square feet.

The company is providing product to B.C. and several other provincial cannabis distribution branches.

The company says it’s also planning to enter the U.S. market.

“In the U.S., subject to compliance with all applicable U.S. federal and state laws, Village Farms is pursuing a strategy to become a leading developer and supplier of branded and white-labeled CBD products targeting ‘big box’ and other major retailers and consumer packaged goods companies, and with one the largest greenhouse operations in country, is well positioned for the potential federal legalization of high-THC cannabis,” the company stated.

The company also says it’s looking at the long-term potential of the Asia-Pacific region.

Pure Sunfarms last week announced it’s once again expanding its product offerings.

Pure Sunfarms says it will be selling to market a high-THC vape that has pure cannabis extract as its only ingredient, a concentrated product for consumers seeking a high-THC experience.

The company notes the vape will be available for purchase in the days and weeks ahead in the B.C. Ontario and Alberta markets.

Meanwhile, another smaller Delta greenhouse cannabis operation on 104th Street in East Ladner, Rubicon Organics, last week announced it received a Health Canada license sales amendment which will allow the direct sale of organic cannabis edibles, topical and concentrate products to provincially authorized distributors/retailers and registered patients, in addition to its dried and fresh cannabis product.

Delta Optimist

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