VFF - Wow for Pure Sun FarmsVillage Farms International Reports Strong Second Quarter 2019 Results - Canadian Cannabis JV More Than Doubles Sales to CAD$32.3 Million with an All-In Cost of Production of CAD$0.65 per Gram and EBITDA Margin of 78%, and Achieves Third Consecutive Quarter of Profitability. Pure Sunfarms' second quarter financial results firmly rank it among the largest, most efficient and most profitable licensed cannabis producers in Canada, and clearly demonstrates that we have built a best in class cannabis operation setting a new bar for industry performance," said Michael DeGiglio, Chief Executive Officer, Village Farms. "Moreover, Pure Sunfarms' ability to achieve this level of operational and financial performance in just 24 months from our initial announcement to enter the cannabis industry is clear validation of our unique conversion strategy. It also underscores the considerable advantage of combining existing, state-of-the-art greenhouse operations with 20 years of site-specific experience, and an exceptional management team, supported by Village Farms' decades-long track record in large-scale, low-cost, precision agriculture."
"These results are even more impressive given that Pure Sunfarms' first 1.1 million square foot greenhouse, Delta 3, was not yet at full production during the second quarter and sales were almost entirely to other licensed producers at pricing below what Pure Sunfarms expects to realize when selling directly to provincial/territorial and other retailers. We expect Pure Sunfarms to deliver consistent quarter-on-quarter growth throughout this year and next, driven by Delta 3 now operating at full production, the anticipated start of sales directly to the Ontario Cannabis Store and other provincial/territorial and private retailers, expansion of product sales into pre-rolls and oils and other derivative products, and the doubling of capacity to 150,000 kilograms annually with its second 1.1 million square foot facility, Delta 2, expected to begin operations mid-2020 and achieve full production later that year."
"The success of Pure Sunfarms to date – both operationally and financially – provides us with tremendous confidence as Pure Sunfarms proceeds with the conversion of Delta 2, which will benefit from the same strategy of transferring Village Farms' experienced growers, operational team and skilled crop workers that have been so integral to the success of Delta 3. And we continue to be optimistic about the potential for Pure Sunfarms to further expand production to as much as 330,000 kilograms or more through the addition of the 2.6 million square foot Delta 1 facility, further supporting low-cost production."
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