Joint Venture VANCOUVER, May 21, 2019 /PRNewswire/ - Village Farms International, Inc. ("Village Farms" or the "Company") (TSX:VFF;NASDAQ:VFF) today announced it has entered into an agreement with Arkansas Valley Hemp, LLC ("AV Hemp") to form a joint venture for the outdoor cultivation of high-cannabidiol (CBD) hemp and CBD extraction in Colorado. The joint venture, Arkansas Valley Green and Gold Hemp LLC ("Arkansas Valley Green and Gold"), will be 60%-owned by Village Farms, 35%-owned by AV Hemp, and 5%-owned by Village Fields Hemp (Village Farms' 65%- owned joint venture for hemp cultivation and CBD extraction in the U.S. states other than Colorado). Based in the Arkansas Valley of Colorado, AV Hemp was established by the founder of one of Colorado's largest licensed outdoor cannabis growing operations and real estate developer, specifically to capitalize on the significant opportunity in hemp-derived CBD.
Arkansas Valley Green and Gold is targeting to be in production on approximately 120 acres in the Arkansas Valley in 2019, increasing Village Farms total planned hemp production area for its two hemp joint ventures for 2019 to more than 920 acres (for all of which adequate quantities of hemp seed has already been purchased). Arkansas Valley Green and Gold plans to expand to as much as 500 acres in 2020. Arkansas Valley Green and Gold will initially cultivate in 2019, with extraction to crude biomass coming online in early 2020 with plans to expand operations in 2020 to support Village Farms' vertically integrated strategy.
"This new joint venture is an outstanding opportunity to expand Village Farms' outdoor hemp cultivation and CBD extraction program in partnership with an experienced, large-scale outdoor grower in one of the best growing regions for hemp in one of the most advanced hemp industries of any state in the country," said Michael DeGiglio, Chief Executive Officer, Village Farms. "We expect both Arkansas Valley Hemp and Village Fields to benefit from each other's extensive know-how, including specific expertise in outdoor cultivation, as we collaborate to advance cultural practices and genetics to optimize plant traits and yields."
One of the first states to allow hemp cultivation in 2012 when it legalized recreational cannabis, Colorado is at the forefront of hemp cultivation and extraction. Located along the Arkansas River approximately 125 miles (200 kilometers) south of Denver, the Arkansas Valley is known for its fertile land and favorable growing climate. Agricultural production in the Arkansas Valley benefits from the intensity of the sunlight due to its elevation of approximately 4,500 feet above sea level, as well as low humidity levels and an optimal day/night temperature variation, all of which contribute to plant quality and yield.
Mr. DeGiglio added, "Village Farms is uniquely positioned for the significant opportunity in hemp-derived CBD. We are moving quickly to scale outdoor cultivation to complement our existing, state-of-the-art greenhouse operations in Texas and further strengthen the foundation for our national, vertically integrated, consumer packaged strategy for hemp-derived CBD."