Village Farms International Inc (NASDAQ:VFF) reported revenues of $47.4 million (up 43% YoY) in Q4 2020. 

Completes the takeover of Pure Sunfarms

Village Farms acquired a 41.3% stake owned by Emerald Health Therapeutics, Inc in Pure Sunfarms on November 2, 2020. As a result, the company owns 100% of Pure Sunfarms and realizes its income.

Pure Sunfarms reported a sequential growth of 28% and YoY growth of 248% in retail branded sales. The company reported revenues of CAD 15.5 million in Q4 2020. 

Village Farms Clean Energy, Inc, a subsidiary of Village Farms International, renewed the existing contract agreement with Vancouver City. 

Developments after Q4 2020, Raises CAD 171 million

Village Farms raised funds of CAD 171 million by issuing 10.887 million shares to certain institutional investors in a direct registered offering. It also issued additional common shares of 1.773 million under the warrant exercise option and raised $10.3 million. It is as per the direct registered offering entered in September 2020. The outstanding warrants as of today are 2.924 million. Village Farms closed the debt of CAD 19.9 million together with accrued interest. 

CEO of Village Farms, Michael DeGiglio, said the company reported solid revenues in Q4 2020. The revenues in Q4 2020 also included the sales of its wholly-owned subsidiary – Pure Sunfarms.

Pure Sunfarms demonstrated its cultivation expertise and excellence and the differentiated product strategy in 2020 to deliver profitability despite the challenges of coronavirus consistently. 

The company is building on this momentum going forward in 2021 to begin cultivation in its Delta 2 greenhouse in H2 to satisfy the growing demand for the products of Pure Sunfarms.

Village Sunfarms will use the premium quality flower of Pure Sunfarms at affordable rates to drive the growth of retail branded products. 

Improved market share, best-in-class operations, and consistent profitability of cannabis business in Canada, along with a strong balance sheet, improve Village Farms’ confidence to benefit from cannabis opportunity in the US. 

Village Farms adopted multiple strategies to take part in this market using its organizational strength and deep experience, and the nation’s biggest greenhouse presence. 

In 2021, Village Farms also expects to advance its global cannabis strategy.