One of the most interesting marijuana stocks to watch in the cannabis space is Village Farms International (TSX:VFF) (NASDAQ:VFF). This marijuana stock used once upon a time was growing vegetables in greenhouses but in 2017, they decided to get into the cannabis business. This pot stock made its way by setting up Pure Sunfarms, a joint venture with Emerald Health Therapeutics. According to the terms of the joint venture, the company sold its greenhouses to Pure Sunfarms, while Emerald was put in charge of cannabis production as well as the financing responsibilities. While that was an excellent deal in itself, it is also important to point out that this marijuana stock company has made rapid progress over the course of the past two years.
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In April of this year, Pure Sunfarms bought another production facility, from Village Farms, that stretches across an area of 1.1 million square feet. Currently, it has two facilities and when at full tilt, Pure Sunfarms will have 150,000 kilos of cannabis in total from both setups. Although it is still an impressive haul on a yearly basis, it needs to be said that the produce from 2.2 million square feet of growing space, will take some work to compete with rivals.
That being said, there have been other important developments with regards to Village Farms and the most important one is that this marijuana stock has now entered the growing hemp industry as well. The passage of Farm Bill in the United States in December 2018 has opened the floodgates to the hemp industry and hemp-based CBD products. Village Farms is looking to take advantage of the new regulation. It has quickly strung up two joint ventures. One of those joint ventures has planted hemp in an area spanning 600 acres, while the other has done the same in an area spanning 120 acres. Additionally, Village Farms has also allocated 5.7 million square feet of greenhouse facilities in West Texas to hemp production.
Published at Mon, 29 Jul 2019 19:37:33 +0000