Village Farms International's Cannabis JV Pure Sunfarms Receives Health Canada Approval for State-of-the-Art Processing Center

Published: March 24, 2020

Village Farms International's Cannabis JV Pure Sunfarms Receives Health Canada Approval for State-of-the-Art Processing Center

Village Farms International, Inc. announced its majority-owned joint venture for large-scale, low-cost, high-quality cannabis production, Pure Sunfarms, has received approval from Health Canada to operate the final components of its 65,000 square foot, state-of-the-art processing center located within the 1.1 million square foot Delta 3 greenhouse facility.  The significantly expanded processing area will enable Pure Sunfarms to generate additional production cost efficiencies, further elevate the quality of its products, expand its product offerings and increase its processing throughput.

Health Canada’s approval of the additional processing area permits Pure Sunfarms to begin operation of:

  • 11 additional drying rooms utilizing advanced drying technology and processes to further enhance the quality of Pure Sunfarms product;
  • 5 additional packaging rooms;
  • 2 additional testing areas;
  • 6 additional storage areas; and,
  • 7 extraction rooms with equipment capable of processing 35,000 kilograms of biomass annually.

The expanded processing center has been designed to satisfy full European Union GMP compliance and certification requirements, which Pure Sunfarms is currently pursuing.  The 65,000 square foot processing centre has capacity to serve both the Delta 3 and Delta 2 greenhouse facilities, with a combined production area of 2.2 million square feet, at full production.

“The approval of this additional processing space enables Pure Sunfarms to enhance our operations and quality processes to further support our commitment to providing our customers with high-quality products at a great price,” said Mandesh Dosanjh, President and CEO, Pure Sunfarms. “Pure Sunfarms expects to begin to realize the benefits of this new space in the coming quarter, allowing us to build on our strong performance in the Canadian markets we serve.”

“Pure Sunfarms’ success is directly attributable to the decades of large-scale growing and operational experience contributed by Village Farms, low-cost production, efficient capital investment, disciplined cost management and the installation of a smart, highly talented and experienced leadership team,” said Michael DeGiglio, CEO, Village Farms. “It is a business model that positions Pure Sunfarms to continue to be a leader in the Canadian cannabis sector for years to come.  The expansion of this processing area significantly strengthens Pure Sunfarms’ capabilities to produce high-quality products, supports its ongoing pursuit of even greater production efficiencies and sets the stage for the introduction of new product formats to build on its leading sales performance in dried cannabis products.”

Pure Sunfarms Remains Top-Selling Dried Cannabis Brand with Ontario Cannabis Store for First Two Months of 20201

Village Farms also reported that Pure Sunfarms was the top-selling brand of dried flower with the Ontario Cannabis Store (OCS) by dollars sold and kilograms sold for the year to date ended February 29, 2020, achieving a 13.5% market share (by kilograms sold).  In addition, for the same period, Pure Sunfarms had two of the top four strains by dollars sold and kilograms sold (Afghan Kush and White Rhino) and Pure Sunfarms’ Afghan Kush was the top strain by sales dollars and kilograms sold with the OCS.  As previously announced, Pure Sunfarms was the top performing brand of dried flower by both kilograms sold and dollar sales with the Ontario Cannabis Store (OCS) for the three-month period ended December 31, 2019, achieving 13% market share (by kilograms sold).1

“We are thrilled to see Pure Sunfarms continue its strong sales performance and once again rank as the best-selling dried cannabis brand with the OCS,” said Mr. DeGiglio. “Pure Sunfarms has rapidly established itself as a premier dried cannabis brand with high-quality products that consumers want at an attractive price.”

Pure Sunfarms Launches New Large-Format 28-Gram Product of High-Quality Cannabis

Village Farms also announced that Pure Sunfarms has launched a new large-format 28-gram (1 ounce) high-quality cannabis product.  Pure Sunfarms’ 28-gram pack is now available for consumers in British Columbia to purchase online at BC Cannabis Stores, with availability at licensed retailers across the province to follow. The 28-gram pack is expected to be available online at the Ontario Cannabis Store in early April, and at participating retailers shortly thereafter.

“We know that Canadian consumers of recreational cannabis are looking for convenient, quality product, at a price they can count on,” said Mandesh Dosanjh, President and CEO, Pure Sunfarms. “At Pure Sunfarms, we pride ourselves on producing B.C. grown cannabis, farmed with care, and we’ll continue to do just that with our new large format pack of dried flower. Consumers will receive the same high quality they have come to expect from Pure Sunfarms in every 28-gram  package.”

Mr. DeGiglio commented, “As a high-quality, low-cost producer, Pure Sunfarms has the advantage of significant pricing flexibility as the Canadian cannabis market continues to evolve to support and grow its strong market share.”