Village Farms International Announces Expansion of Pure Sunfarms' Licensed Cannabis Production Area

Published: January 29, 2019

Village Farms International Announces Expansion of Pure Sunfarms' Licensed Cannabis Production Area

Village Farms International, Inc. announced that its 50%-owned joint venture for large-scale, low-cost, high-quality cannabis production, Pure Sunfarms, received from Health Canada the sixth amendment to the cultivation license for its 1.1 million square foot greenhouse in Delta, BC (the Delta 3 facility). This amendment permits Pure Sunfarms to expand its cannabis production area by approximately 138,000 square feet to a total of approximately 825,000 square feet. With this amendment, the entirety of the first three quadrants of the 1.1 million square foot Pure Sunfarms facility is now licensed for cultivation. The newly licensed area is expected to be fully planted and in production this week.

“The Pure Sunfarms cannabis operation continues to execute on plan, steadily expanding production towards its target of reaching full run rate annual production of 75,000 kilograms in the first half of this year,” said Michael DeGiglio, CEO of Village Farms. “As the Canadian cannabis market continues to be challenged by a supply shortage, Pure Sunfarms has already established itself as one of the premier suppliers, with a reputation for industry leading operations and quality, consistency and safety of product. Village Farms, with our decades of experience as a vertically integrated large-scale greenhouse operator, is proud to have played an integral role in Pure Sunfarms’ continuing success.”

As previously announced, Pure Sunfarms has completed conversion of the remaining approximately 206,000 square feet of growing area (the Quadrant 4 growing area), which is currently under review by Health Canada in respect of further amendment of Pure Sunfarms’ cultivation license. Licensing of this area for cultivation, in aggregate, will expand Pure Sunfarms’ permitted production area to just over 1.03 million square feet, with the remaining approximately 69,000 square feet of the 1.1 million square foot facility currently in the process of being converted for extraction activities. 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.

As also previously announced, 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 infrastructure is currently being installed in Quadrant 1 and will be completed prior to Quadrant 1 resuming production in late February 2019. Conversion of Quadrant 1 was completed in April 2018 without supplemental lighting to be able to begin production immediately during the summer months when supplemental lighting was not needed.

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 13 of which are now licensed) optimized for year-round harvesting (more than 80 harvests annually).

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