Village Farms reports Pure Sunfarms hemp production at full run-rate
Village Farms announced that its 50%-owned joint venture for large-scale cannabis production, Pure Sunfarms, has, on schedule, achieved full run-rate production of 75K kilograms of dried cannabis annually at its 1.1 million square foot Delta 3 greenhouse in Delta, B.C. CEO Michael DeGiglio stated, "We look forward to strong growth in revenue and profitability at Pure Sunfarms, driven by the successful ramp to full production at Delta 3. In addition, gross margin will benefit from the start of sales to the Ontario Cannabis Store and other potential retailers following Health Canada's expected near-term approval to sell directly to provincial/territorial and private retailers, as well as the transition of Pure Sunfarms' supply agreement with another licensed producer to more favorable terms on January 1, 2020." Pure Sunfarms continues to steadily progress on its in-house extraction capabilities, which it expects to be operational this year. Pure Sunfarms has commenced conversion of its second 1.1 million square foot greenhouse operation, Delta 2, for cannabis production, which will double Pure Sunfarms' annual output at full production to 150,000 kilograms. Pure Sunfarms expects to complete its first harvest at the Delta 2 facility by mid-2020, ramp to full run rate annual production by the fourth quarter of 2020, and operate at full production of 75,000 throughout 2021.