Village Farms International, Inc. (“Village Farms” or the “Company”) (NASDAQ: VFF) (TSX: VFF) today announced its wholly owned Canadian cannabis subsidiary, Pure Sunfarms, has completed its first export shipment of cannabis, supplying a variety of high-quality, high-THC dried flower products to Village Farms’ minority interest investee, Australia-based Altum International Pty Ltd. (“Altum”)1, for the Australian medicinal cannabis market. The products will be sold under Altum’s recently launched brand, Kind Medical (www.kind.com.au). The shipment is the first international export shipment for Pure Sunfarms and its first shipment to Australia under a three-year supply agreement with Altum.
Medicinal cannabis was federally legalized in Australia in 2016. Following a period of moderate expansion, the Australian medicinal cannabis market is currently experiencing strong growth, due in part to the significant increase in the number of authorised prescribers. Patient numbers have increased 15-fold over the past two years2, with total market sales for 2021 forecast to increase to approximately AU$200 million, double that of the approximately AU$100 million in total market sales in 20202.
“This is another important milestone for Village Farms’ cannabis strategy for a number of reasons,” said Michael DeGiglio, CEO, Village Farms International. “For Pure Sunfarms, exportation of their leading cannabis products represents a significant long-term opportunity to leverage their scale and position as the top-selling dried flower brand in three of Canada’s largest provincial markets3 for opportunities beyond the Canadian market. For our partner Altum, it marks commercial entry into their third Asia-Pacific market, and entry into their first high-THC cannabis market. And for Village Farms overall, it is an example of the significant synergies that are developing amongst our family of brands and partners.”
“We are excited to supply dried flower for consumers internationally for the first time and look forward to supporting our partner, Altum, as they expand their product offerings going forward to build their own brand in the Australian medicinal market,” said Mandesh Dosanjh, President and Chief Executive Officer, Pure Sunfarms. “We are confident that the top-selling3 everyday premium products we produce in Canada will be favourably received by medicinal cannabis patients in Australia.”
“Altum exists to bring the life-changing benefits of cannabinoids back to the Asia-Pacific region,” said Ean Alexander, Chief Executive Officer, Altum International. “As the Australian medicinal cannabis market has experienced rapid growth, especially in the past year, the combination of quality, affordability and availability has been largely unattainable for patients. We have established Kind Medical to specifically address that. With our partner, Pure Sunfarms, we look forward to bringing some of the highest quality cannabis in the world to the Australian market.”
Pure Sunfarms Commences Cultivation in Second 1.1 Million Square Foot Greenhouse Facility (Delta 2)
Village Farms also announced that Pure Sunfarms has commenced cannabis cultivation in the completed half of its second 1.1 million square foot greenhouse facility, Delta 2. Harvesting in Delta 2 is expected to begin in November of this year.
Pure Sunfarms Provides Update on EU-GMP Certification Process: Inspection Completed
Village Farms also announced that EUDRA, the certifying body of European Union Good Manufacturing Practices (EU-GMP), has completed its inspection of Pure Sunfarms’ Delta 3 cannabis production and processing facility in Delta, British Columbia. If successful in obtaining its EU-GMP certification prior to the end of this year, Pure Sunfarms could begin shipping product to the EU in the first quarter of 2022.
Notes
1. Village Farms has a 12% ownership interest in Altum.
2. FreshLeaf Analytics: Australian Medicinal Cannabis Market Patient, Product and Pricing Analysis, H1 2021.
3. Dried flower category in Ontario (based on Ontario Cannabis Store market data for the quarter ended June 30, 2021 calculated by Pure Sunfarms from sales information provided by OCS) and dried flower category in Alberta and British Columbia based on data calculated by Pure Sunfarms from sales information provided by Buddi retail store data from over 300 retailers across Alberta and British Columbiaas of June 30, 2021.
