Village Farms International Announces Launch of Top-Selling Cannabis Brands in the UK
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The expansion of Village Farms International into the UK represents a strategic move in the burgeoning global cannabis market. By entering the UK, Village Farms is tapping into a medical cannabis market that is in its nascent stages but expected to grow significantly. The partnership with 4C LABS could provide a foothold for Village Farms to establish brand recognition and loyalty among UK consumers. With the UK being the third most populated country in Europe, the potential customer base is substantial.
Furthermore, the success of the selected strains in Canada could indicate a favorable reception in the UK, provided consumer preferences align. However, it's crucial to monitor how these strains compete against local and other international offerings in the UK market. The company's performance in other international markets like Germany, Australia and Israel can serve as a benchmark for success in the UK. Stakeholders should watch for quarterly earnings and market share reports to assess the impact of this expansion on Village Farms' financial health.
Investors should consider the implications of Village Farms International's expansion on the company's revenue diversification and potential for growth. The introduction of popular strains into a new market could lead to an increase in sales and a stronger international presence, which may positively affect the company's stock valuation in the long term. However, investors must also weigh the costs associated with entering and establishing operations in a new market against the projected revenue.
It is important to analyze the company's balance sheet and cash flow statements in subsequent quarters to discern the financial impact of the UK expansion. Village Farms' ability to leverage its experience in other international markets could be a critical factor in the efficient allocation of resources and cost management during this expansion phase.
The legal landscape of cannabis is complex and varies significantly across countries. Village Farms' entry into the UK market necessitates navigating the UK's specific medical cannabis regulations, which differ from those in Canada and other markets. Compliance with these regulations is essential for maintaining operations and avoiding potential legal challenges that could impact the company's reputation and financial standing.
Additionally, the evolving nature of cannabis laws means that Village Farms must stay informed and adaptable to changes that could affect market access and product distribution. The company's ability to manage these legal intricacies can influence its long-term success in the UK and other international markets.
– Company Expands Canadian Cannabis Exports
to Fourth Overseas Medical Cannabis Market –
VANCOUVER, British Columbia, Jan. 03, 2024 (GLOBE NEWSWIRE) -- Village Farms International, Inc. (“Village Farms” or the “Company”) (NASDAQ: VFF) today announced the first shipment and launch of two leading cannabis brands in the United Kingdom (UK). The Company’s Pure Sunfarms and The Original Fraser Valley Weed Co. (“Fraser Valley”) brands will be distributed by 4C LABS, a leading UK medical cannabis company focused on providing patients with world class medical cannabis products. The launch includes three of Village Farms’ most popular strains in Canada: Pink Kush, Jet Fuel Gelato and D. Burger. Pure Sunfarms’ Pink Kush is a long-standing favorite among Canadian consumers, consistently holding the top-selling spot in dried flower nationally over the past two years1. Pure Sunfarms’ Jet Fuel Gelato rapidly became a consumer favorite in Ontario, Canada’s largest provincial market. And Fraser Valley’s D. Burger is the third best-selling dried flower strain in Ontario2.
“This launch of our leading BC-grown cannabis brands is a game-changer for patients in the UK, the third most populated country in Europe,” said Michael DeGiglio, Chief Executive Office, Village Farms. “We are proud to launch brands and products in the UK that have driven our top-three market share performance in Canada, while also proving successful in other international markets. Through our wholly owned subsidiary, Pure Sunfarms, we are now exporting our preferred Canadian-grown cannabis products to four international medical markets, including Germany, Australia and Israel, which together with the UK, represent a population of more than 185 million.”
"We are thrilled to partner with Village Farms to bring its best-selling flower products in Canada – the most competitive cannabis market in the world – to the UK medical market for the first time,” said Greg Dobbin, President and Chief Executive Officer, 4C LABS. “Their Pure Sunfarms and Fraser Valley offerings will each uniquely fill out important segments in our portfolio to address the needs of UK consumers seeking consistently high-quality flower. Village Farms is known to be best in the world at delivering such quality, with stable supply, and we are confident these brands will resonate with UK consumers immediately upon launch and support 4C LABS in our goal to build a dominant position in the UK medical cannabis market.”
About 4C LABS Ltd.
4C LABS Ltd. is a privately held Canadian medical cannabis company focusing on providing pharmacies & clinics with world class medical cannabis products at an affordable price. 4C LABS has import and distribution licenses in the UK and a wide network of pharmacies in the UK & Channel Islands. 4C LABS carries a full product line of medical cannabis from a selected network of trusted international cultivation partners. For more information, please visit www.4clabs.co
About Village Farms International, Inc.
Village Farms leverages decades of experience as a large-scale, Controlled Environment Agriculture-based, vertically integrated supplier for high-value, high-growth plant-based Consumer Packaged Goods opportunities, with a strong foundation as a leading fresh produce supplier to grocery and large-format retailers throughout the US and Canada, and new high-growth opportunities in the cannabis and CBD categories in North America and selected markets internationally.
In Canada, the Company's wholly owned Canadian subsidiary, Pure Sunfarms, is one of the single largest cannabis operations in the world, the lowest-cost greenhouse producer and one of Canada’s best-selling brands. The Company also owns
In the US, wholly owned Balanced Health Botanicals is one of the leading CBD brands and e-commerce platforms in the country. Subject to compliance with all applicable US federal and state laws and stock exchange rules, Village Farms plans to enter the US high-THC cannabis market via multiple strategies, leveraging one of the largest greenhouse operations in the country (more than 5.5 million square feet in West Texas), as well as the operational and product expertise gained through Pure Sunfarms' cannabis success in Canada.
Internationally, Village Farms is targeting selected, nascent, legal cannabis and CBD opportunities with significant medium- and long-term potential, with an initial focus on the Asia-Pacific region, Israel and Europe.
Cautionary Statement Regarding Forward-Looking Information
As used in this Press Release, the terms “Village Farms”, “Village Farms International”, the “Company”, “we”, “us”, “our” and similar references refer to Village Farms International, Inc. and our consolidated subsidiaries, and the term “Common Shares” refers to our common shares, no par value. Our financial information is presented in U.S. dollars and all references in this Press Release to “$” means U.S. dollars and all references to “C$” means Canadian dollars.
This Press Release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the U.S. Securities Act of 1933, as amended, (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and is subject to the safe harbor created by those sections. This Press Release also contains "forward-looking information" within the meaning of applicable Canadian securities laws. We refer to such forward-looking statements and forward-looking information collectively as "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, expansion plans, 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, the greenhouse vegetable or produce industry or the cannabis industry are forward-looking statements. In some cases, forward-looking information can be identified by such terms as "can", "outlook", "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "try", "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. The forward-looking statements in this Press Release are subject to risks that may include, but are not limited to: our limited operating history in the cannabis and cannabinoids industry, including that of Pure Sunfarms, Inc. (“Pure Sunfarms”), Rose LifeScience Inc. (“Rose” or “Rose LifeScience”) and Balanced Health Botanicals, LLC (“Balanced Health”); the legal status of the cannabis business of Pure Sunfarms and Rose and the hemp business of Balanced Health; risks relating to the integration of Balanced Health and Rose into our consolidated business; risks relating to obtaining additional financing, including our dependence upon credit facilities; potential difficulties in achieving and/or maintaining profitability; variability of product pricing; risks inherent in the cannabis, hemp, CBD, cannabinoids, and agricultural businesses; market position; ability to leverage current business relationships for future business involving hemp and cannabinoids; the ability of Pure Sunfarms and Rose to cultivate and distribute cannabis in Canada; existing and new governmental regulations, including risks related to regulatory compliance and regarding obtaining and maintaining licenses; legal and operational risks relating to expected conversion of our greenhouses to cannabis production in Canada and in the United States; risks related to rules and regulations at the US federal (Food and Drug Administration and United States Department of Agriculture), state and municipal rules and regulations with respect to produce and hemp, cannabidiol-based products commercialization; retail consolidation, technological advances and other forms of competition; transportation disruptions; product liability and other potential litigation; retention of key executives; labor issues; uninsured and underinsured losses; vulnerability to rising energy costs; inflationary effects on costs of cultivation and transportation; recessionary effects on demand of our products; environmental, health and safety risks, foreign exchange exposure, risks associated with cross-border trade; difficulties in managing our growth; restrictive covenants under our credit facilities; natural catastrophes; the ongoing COVID-19 pandemic; and tax risks.
The Company has based these forward-looking statements on factors and assumptions about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs. 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, which 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 securities regulators, including this Press Release.
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 relate only 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, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
| Contact Information Lawrence Chamberlain Investor Relations LodeRock Advisors (416) 519-4196 lawrence.chamberlain@loderockadvisors.com |
1 Annual average based on wholesale sales from the Ontario Cannabis Store (OCS), as of November 2023.
2 Based on Hifyre and OCS data.
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