RE:ECHELON COMMENTS ON ALR - VFF TARGET $15.00link?
THETEXASAGGIE wrote: “Village Farms International (VFF-TSX, Speculative Buy, $15.00/shr PT) not Impacted by Potential Cultivation Prohibition – British Columbia’s provincial government announced that local and First Nations governments are now able to prohibit cannabis production in the Agricultural Land Reserve (ALR) within their communities, with certain notable exemptions being facilities that are licensed, or are fully constructed or under construction. The government’s announcement noted that there is no biological difference between a cannabis plant grown for medical purposes and a plant grown for the recreational market. We believe this effectively makes recreational cannabis an approved agricultural crop in BC.
Certain communities, including Delta, BC, had expressed concern that industrial cannabis production would divert land that would otherwise be used for food crops. VFF has a 50/50 cannabis joint venture with Emerald Health Therapeutics (EMH-TSXV, NR) called Pure Sunfarms, and its Delta 3 greenhouse facility already has a cultivation license (we expect the sales license in short order). VFF’s Delta 1 and 2 greenhouses are already constructed. These facilities are therefore exempt from potential prohibition, which otherwise creates a new entry barrier for would-be competition in the area.”