Village Farms' 50%-owned joint venture for cannabis production, Pure Sunfarms, received from Health Canada the fifth amendment to its cultivation license for its 1.1 million square foot greenhouse in Delta, BC. This amendment permits Pure Sunfarms to expand its cannabis production area by approximately 137,000 square feet (half of Quadrant 3) to a total of approximately 687,000 square feet. The newly licensed area is expected to be fully planted and in production by the end of this week.
"As strong demand outstrips near-term supply in the Canadian cannabis market, Pure Sunfarms continues to steadily expand its licensed production area, already one of the very largest in the country," said Michael DeGiglio, CEO of Village Farms. "With the benefit of Village Farms' three decades of technical and design know-how, its 20-years of site-specific experience at the Delta facility, existing operational and growing teams and existing labour force, Pure Sunfarms' cannabis facility continues to perform very well, growing multiple strains, with industry-leading quality and yields firmly in line with our expectations. As anticipated, the Canadian industry generally has faced challenges ramping production, however, we are confident in Pure Sunfarms' ability to achieve its annual run-rate production of 75,000 kilograms in the first half of 2019 and prove itself to be one of the best cannabis production operations in the industry."
Mr. DeGiglio added, "As Pure Sunfarms ramps production, it continues to take advantage of favourable spot market pricing as it awaits its packaging sales license amendment in order to commence sales to provincial boards. Pure Sunfarms remains poised to be a vertically integrated leader in the rapidly emerging Canadian cannabis industry and Village Farms' shareholders remain well positioned to reap the rewards."
Pure Sunfarms has completed conversion of the remainder of Quadrant 3 (approximately 138,000 square feet) and is currently awaiting Health Canada approval of that additional production area. Pure Sunfarms expects to complete conversion of Quadrant 4 (approximately 275,000 square feet) by the end this year and anticipates Health Canada approval of that additional area by the end of January 2019. At a total licensed area of 1.1 million square feet, Pure Sunfarms Delta greenhouse will be one of the single largest cannabis growing facilities in the world.
All supplemental lighting is operational in Quadrants 2 and 3, and is expected to be operational in Quadrant 4 upon start of production, supporting maximum yields during the lower daylight winter months. Supplemental lighting will be installed in Quadrant 1, conversion of which, as per plan, was completed earlier this year without supplemental lighting to be able to commence production immediately during the summer months when supplemental lighting is not required. Quadrant 1 is expected to resume production by the end of February 2019.
The technologically-advanced Delta 3 greenhouse design is based on decades of large-scale, low-cost agricultural production experience and extensive cannabis expertise, resulting in a state-of-the-art facility with 16 grow rooms (eleven of which are now licensed) optimized for year-round harvesting (more than 80 harvests annually).
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