Pure Sunfarms is the story hereThe financials are quite good considering they were retrofitting the greenhouses from vegetable to cannabis production. But the real story is with Pure Sunfarms.
I did take some profit off the table. Always good after 20% gains in two trading days but glad I held most.
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Cannabis Joint Venture (Pure Sunfarms) Update
- Pure Sunfarms completed its initial cannabis harvest at the Delta 3 greenhouse, a portion of which will be submitted for testing under Health Canada's sales licensing process and the remainder of which will be inventoried for sale when Pure Sunfarms receives its sales license;
- Pure Sunfarms received an amendment to its cultivation license for the Delta 3 greenhouse from Health Canada, permitting Pure Sunfarms to initiate commercial scale growing, which commenced today. As previously announced, senior growing, financial, human resources and operational personnel, including the established team transferred from Village Farms, as well as multiple new management hires are in place for production ramp-up, and the search for a CEO is well underway;
- Pure Sunfarms finalized a contract for the short-term rental of the requisite generating equipment to power supplemental lighting during the 2018/2019 winter months, while the installation of the approved additional 24MW by the local utility is in process. The power generation equipment will enable Pure Sunfarms to increase production throughout the 2018/2019 winter months, thereby accelerating the production ramp-up at the Delta 3 facility, such that Pure Sunfarms now conservatively projects production of approximately 7,000 to 8,000 kilograms in 2018 and 46,000 to 52,000 kilograms in 2019;
- Pure Sunfarms entered into its first supply agreement, with Emerald Health Therapeutics, Inc. ("Emerald") (TSXV: EMH; OTCQX: EMHTF; Frankfurt: TBD), under which Emerald will purchase 40% of Pure Sunfarms' production in 2018 and 2019, or approximately 21,000 to 24,000 kilograms using current projected production targets, at a pre-determined price per gram. Pure Sunfarms is currently in discussions with multiple parties, including provincial governments and other licensed producers, in pursuit of additional supply agreements.
"The start today of commercial-scale cannabis production at the Delta 3 facility is the most significant milestone for Pure Sunfarms to date," said Michael DeGiglio, CEO, Village Farms. "And we are thrilled to definitively move forward with the accelerated production plan, which significantly increases Pure Sunfarms conservative production targets to as much as 60,000 kilograms or more of dried cannabis through the end of 2019. This accelerated plan will enable Pure Sunfarms to more fully capitalize on the expected near-term shortfall of supply when adult use of cannabis is legalized in Canada."