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Village Farms: Revolutionizing the Cannabis Industry with Fresh-First Approach

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In the ever-evolving cannabis market, one company has been making waves with its fresh-first approach: Village Farms International (VFF). With over 30 years of experience in the greenhouse industry, VFF is positioning itself as a low-cost, high-quality producer in the cannabis space.

The CEO of Village Farms, Michael DeGiglio, is a visionary leader with a rich background. Having served in the United States Navy as an officer and tactical carrier jet aviator, DeGiglio brings a unique perspective to the company. Under his leadership, VFF has become one of the top-selling tomato producers in North America, creating a robust distribution platform that sets them apart from the competition.

Breaking Bread with Glass House Brands

During a recent meeting with the management teams of Glass House Brands (GLASF) and Village Farms, the similarities between the two companies became apparent. Both are greenhouse growers with industry-leading cost of goods sold (COGS) and a focus on California and Canada markets. However, the true potential lies in their ability to expand into the larger market, domestically and internationally.

The global cannabis industry is following a similar pattern to the U.S. market, with legalization occurring state by state. This presents opportunities for Village Farms to emerge as a leading Multi-Country Operator (MCO) once the global industry matures. With both GLASF and VFF positioned for success, investors have a unique chance to capitalize on their growth.

As Graham Farrar, co-founder of Glass House Brands, often says, the long-term success of cannabis operators depends on their ability to navigate the complex regulatory landscape. Both GLASF and VFF have demonstrated their commitment to compliance, making them ideal investments for those looking to capitalize on the cannabis marketโ€™s potential.

Village Farms: The Worldโ€™s Largest Supplier of Cannabis

Village Farms has no shortage of ambition. The company aims to become the worldโ€™s largest supplier of cannabis by leveraging strategic partnerships and joint ventures to expand their global footprint. Currently, VFF exports medical marijuana to Israel, Australia, and Germany, and has established an adult-use relationship in the Netherlands.

Moreover, the companyโ€™s international strategy is not limited to cannabis production alone. VFF is actively involved in helping provinces and countries develop robust cannabis programs by providing the necessary information and insights to drive the industry forward. This approach has created goodwill and positioned Village Farms as a trusted partner in various jurisdictions.

With a strong presence in their home country of Canada, VFF has become the second-largest licensed producer in the country, consistently posting positive AEBITDA for the past nineteen quarters. As the leading dried flower producer in Canada, Village Farms has established itself as a powerhouse in the cannabis market.

Cultivating Innovation and Passion

What sets Village Farms apart is their commitment to innovation and cultivating a passionate workforce. With over 30 years of experience in greenhouse cultivation, VFF has honed their cultivation SOPs at scale. The companyโ€™s agricultural expertise is evident in their senior management team, who bring a wealth of knowledge and a shared passion for the industry.

During a tour of Village Farmsโ€™ greenhouses, it became clear that the companyโ€™s success is driven by a culture of loyalty and energy. The dedication of the team, coupled with their innovative approach, positions Village Farms for long-term success in the cannabis industry.

In addition to their flagship brand, VFF has acquired a 70% stake in ROSE LifeScience, a company known for its distribution capabilities. This strategic acquisition further strengthens Village Farmsโ€™ position as a dominant player in the market.

A Promising Partnership: Village Farms and Rubicon Organics

The collaboration between Village Farms and Rubicon Organics holds great promise. With both companies based in Delta, British Columbia, their shared microclimate provides favorable conditions for cannabis cultivation. The two companies complement each other, with Village Farms focusing on high-quality, large-scale production, and Rubicon Organics producing premium-grade cannabis.

Despite being competitors, the management teams of Village Farms, Pure Sunfarms, and Rubicon Organics came together for a dinner, celebrating their shared vision for the industry. The collaboration between companies in the cannabis space illustrates the potential for growth and cooperation in an industry that is still in its infancy.

The Future of Village Farms

As the regulatory landscape evolves and the cannabis market continues to grow, Village Farms is well-positioned to capitalize on the opportunities at hand. With a strong presence in Canada and an international strategy focused on becoming a global leader, VFF has laid the groundwork for long-term success.

Village Farmsโ€™ commitment to cultivating high-quality products, combined with their strategic partnerships, sets them apart in a competitive industry. For investors looking to enter the cannabis market, Village Farms represents a compelling opportunity to participate in the growth of the industry. As Village Farms continues to expand its operations and explore new partnerships, its potential as a market leader becomes increasingly evident.

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Disclaimer: CB1 Capital has positions in/advises some of the companies mentioned in this article. The information provided should not be considered financial advice.

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