Village Farms Provides Operational Update on Delta 2 Greenhouse Expansion
Rhea-AI Summary
Village Farms (NASDAQ: VFF) provided an update on its Delta 2 greenhouse expansion in British Columbia. The project converts the remaining 550,000 square feet of the 1.1 million square foot facility to cannabis production.
The company completed a successful first harvest, has begun cultivation in the second half of the expansion, and accelerated lighting and technology upgrades to the fourth quarter without incremental capital spending. The Delta 2 expansion is expected to reach full annual production capacity of 40 metric tonnes of dried, trimmed flower in the third quarter of next year, supporting profitable sales growth through 2028.
Positive
- Delta 2 first-half expansion completed successful initial harvest
- Cultivation started in second half of Delta 2 expansion with late-August harvest target
- Technology upgrades accelerated to Q4 installation from 2027
- No incremental capital expenditures for accelerated technology upgrades
- Delta 2 expansion expected to add 40 metric tonnes of flower annually
- Full 40 metric tonne production ramp targeted for Q3 next year
Negative
- None.
News Market Reaction – VFF
In the Jun 15 session, VFF gained 0.99%, reflecting a mild positive market reaction. Argus tracked a trough of -3.3% from its starting point during tracking.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jun 12 | Product launch | Positive | -2.4% | Launch of Pink Kush cured resin vape in Canadian markets. |
| Jun 10 | Leadership change | Positive | -0.5% | Appointment of Christopher “Kip” Woodward as Board Chairman. |
| Jun 09 | Capacity expansion | Positive | -1.4% | Commencement of cultivation at Phase II facility in Netherlands. |
| Jun 05 | Equity financing | Negative | -15.4% | Registered direct offering of 7,500,000 shares for ~$15M gross proceeds. |
| Jun 02 | AGM results | Neutral | -4.0% | Annual meeting results with all proposals and directors approved. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent VFF news has often been followed by negative price reactions, even on operational and governance positives, while dilution news aligned with a sharp drop.
Over the last few weeks, Village Farms reported several milestones: a new Pink Kush cured resin vape launch (June 12), a new Board Chairman (June 10), and commencement of Phase II cultivation in the Netherlands targeting up to 10 metric tonnes annual capacity (June 9). It also closed a registered direct equity investment of 7,500,000 shares for about $15 million (June 5) and confirmed all AGM voting items on June 2. Despite mostly constructive updates, shares repeatedly traded lower after these events.
AI-generated analysis. How Rhea-AI works. Not financial advice.
After successful harvest in first half of D-2 expansion, cultivation has now commenced in second half
Company to accelerate technology upgrades quicker than previously anticipated due to increasing demand
Expansion remains on track to yield incremental 40 metric tonnes of flower annually once complete next year
DELTA, British Columbia, June 15, 2026 (GLOBE NEWSWIRE) -- Village Farms International, Inc. (“Village Farms” or the “Company”) (NASDAQ: VFF) today announced several operational updates regarding the ongoing capacity expansion project in its 1.1 million square foot Delta 2 (“D-2”) greenhouse in British Columbia. The D-2 expansion commenced last November to convert the remaining 550,000 square feet of the greenhouse to cannabis production in a series of project phases scheduled through the first half of next year.
The Company recently completed a successful first harvest in the first half of the expansion and today announced it has commenced cultivation in the second half with an expected harvest date in late August. The Company has also accelerated its timeline of planned technology upgrades in response to increasing demand, and will complete lighting and other technological upgrades in the D-2 expansion during the fourth quarter.
President and Chief Executive Officer Michael DeGiglio commented, “Following the successful harvest we completed in the first half of the Delta 2 expansion last week, we are pleased to announce that we’ve commenced cultivation in the second half and are accelerating planned technology upgrades in response to increasing demand. These upgrades were previously expected to be installed in 2027 and importantly will not result in incremental capital expenditures as the equipment was already purchased earlier this year.”
Mr. DeGiglio continued, “We expect the completion of the Delta 2 expansion to result in greater economies of scale as we ramp to full production, and the acceleration of technology upgrades will enable us to meet increasing demand for higher quality flower from our domestic and international partners. We expect the Delta 2 expansion will ramp to its full production capacity of 40 metric tonnes of dried, trimmed flower in the third quarter of next year, positioning us well to drive continued profitable sales growth next year and through calendar year 2028.”
About Village Farms International, Inc.
Village Farms is a global leader in cannabis, plant-based consumer packaged goods, and sustainable innovation. With a legacy built on decades of Controlled Environment Agriculture expertise and Dutch farming practices, today the Company is one of the world’s largest and most profitable cannabis operators with an asset portfolio that spans over 7 million square feet of advanced greenhouse and indoor cultivation assets.
In Canada, Village Farms operates the world’s largest EU-GMP certified cannabis facility at its production campus in Delta, British Columbia, and exports products to international medical markets. The Company is also a market share leader in dried flower formats and produces and distributes some of the country’s highest quality and best-selling strains, including its flagship Pure Sunfarms Pink Kush, one of the most widely consumed strains on the planet. Village Farms’ Canadian brand portfolio includes Pure Sunfarms, Fraser Valley Weed Co., Soar, Super Toast, Pure Laine, Tam Tams and Promenade.
In the Netherlands, the Company is one of only ten licensed operators in the country’s regulated cannabis program, and in the United States its CBDistillery brand is one of the country’s premier cannabinoid wellness platforms, and it also holds equity interests in cannabis businesses in Australia and Germany. Beyond cannabis, the Company’s Clean Energy division transforms landfill gas into renewable natural gas, and it also holds an equity interest in Verdexa Holdings (formerly Vanguard Food LP), a private venture pursuing strategic acquisitions to build a premier branded food platform in North America.
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 use of the proceeds from the Offering , 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, tariffs, taxes, plans and objectives of or involving the Company. 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, Corp. (“Pure Sunfarms”), Rose LifeScience Inc. (“Rose” or “Rose LifeScience”), Balanced Health Botanicals, LLC (“Balanced Health”), and Village Farms International B.V. (“VF International”); the limited operational history of the Delta RNG Project in our energy segment and VF International; the legal status of the cannabis business of Pure Sunfarms, Rose and VF International and the hemp business of Balanced Health and uncertainty regarding the legality and regulatory status of cannabis and cannabinoid (CBD) products in the United States; risks relating to the implementation and enforcement of the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extension Act, 2026; risks relating to the integration of Balanced Health and Rose into our consolidated business; risks relating to obtaining additional financing on acceptable terms, including our dependence upon credit facilities and dilutive transactions; potential difficulties in achieving and/or maintaining profitability; variability of product pricing; risks inherent in the cannabis, hemp, CBD, cannabinoids, and agricultural businesses; our market position and competitive position; our 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 as well as exports; risks related to the start-up of international production at our Netherlands operations; existing and new governmental regulations, including risks related to regulatory compliance and regarding obtaining and maintaining licenses required under the Cannabis Act (Canada), the Criminal Code and other Acts, S.C. 2018, C. 16 (Canada) for our Canadian operational facilities, and changes in our regulatory requirements; 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 U.S. Federal (Food and Drug Administration and United States Department of Agriculture), state and municipal levels 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 and the potential for tariffs and other trade restrictions; difficulties in managing our growth; restrictive covenants under our credit facilities; natural catastrophes; elevated interest rates; 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 and the Company’s most recently filed annual report on Form 10-K and quarterly report on Form 10-Q.
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
| Sam Gibbons Senior Vice President, Corporate Affairs Phone: (407) 936-1190 ext. 328 Email: sgibbons@villagefarms.com |
