VFF price target $76.00 by mid April and whyMy Research for this weekend on VFF compared to ACB as I have had lots of people asking me to do a comparison. Hope this helps some investors. I still suggest you do your own DD and invest on your own decisions. I am also invested in $VFF.
ACB annual production expected to be 160,000 KG for 2019. VFF once this 1.1 million square feet is done (which is ready to go awaiting Canada Health) is a conservative 75,000 kg (37,500 kg their cut). ACB production is 426% times more than VFF annually yet they have roughly 2095% more float. $VFF float moves almost 21 times fast than ACB. Also has been a sleeper for so long this correction makes perfect sense. This puts us at a 1.63 (USD) Billion Market Cap just on the annual production of their cut. This puts the stock at a (34.22 USD price). $VFF costs are also lower than ACB which i did not take into consideration as I wanted to keep this conservative. This does not factor in any of the grocery side of the company which only helps them turn a profit.
These projections do not include the potential to expand the 1.1 Million square feet (25 acres) to the 4.8 Million square feet (110 acres) which Pure Sunfarms (VFF's joint venture they have a 50 percent stake in) has available to them. This projection does not include the 5.7 Million Square Foot (Roughly 131 acres) of greenhouses Village Farms individually owns (100 percent own ed by VFF) in Texas ready to convert to Hemp once Texas passes legislation they expect to be completed this year. This projection does not include the 1.7+ Million square foot (40+ acres) with their Mexico partners. This projection does not include the 3 Million square foot (70 acres) with their Ontario partners in Canada. This projection does not include the 3.0 Million square foot (70 acres) with their BC partners in Canada.
If Pure Sunfarms exercises their options on the other 3.7 Million Square foot. This would bring the Pure Sunfarms to 4.8 Million Square foot (110 acres). This would produce a conservative 300,000 KG annually. Pure Sunfarms has the potential to address nearly half of forecasted Canadian demand.