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VFF

Village Farms

$6.96

-0.24 (-3.33%)

07:36
10/15/19
10/15
07:36
10/15/19
07:36

Pure Sunfarms advised it would receive dispute notice from Emerald Health

Village Farms International announced that its 50%-owned joint venture for large-scale, low-cost, high-quality cannabis production, Pure Sunfarms, was advised by Emerald that it would be receiving a dispute notice from Emerald Health Therapeutics in respect of certain amounts for which Pure Sunfarms has invoiced Emerald under the Supply Agreement. The wholesale market price for cannabis in the markets where the Joint Venture sells its production has declined during the three months ended September 30 resulting in lower margins realized by the Joint Venture for its production as compared to the three months ended June 30. Where Emerald has not exercised its right, either in whole or in part, under a supply agreement between Emerald and the Joint Venture to purchase 40% of the Joint Venture's cannabis production, the Joint Venture has sold some of that excess production in the spot market at prices lower than the predetermined selling price to Emerald under the Supply Agreement. As at the date hereof, the Joint Venture has advised the Company that Emerald currently owes the Joint Venture approximately $7M of Price Deficiency Obligations, and Emerald has advised the Joint Venture that it does not agree with the Joint Venture's position and that it believes it is not responsible for any Price Deficiency Obligations under the Supply Agreement. For greater certainty, the Company is not a party to the Supply Agreement and any amounts owing thereunder are payable to the Joint Venture.

VFF Village Farms
$6.96

-0.24 (-3.33%)

06/13/19
ROTH
06/13/19
INITIATION
Target $25
ROTH
Buy
Village Farms initiated with a Buy at Roth Capital
Roth Capital analyst Scott Fortune started coverage of Village Farms with a Buy rating and $25 price target. The analyst notes that the company is converting its 10.6M sq. ft. tomato greenhouse infrastructure in North America, to new profitable cannabis/hemp cultivation. Established distribution and relationships with the biggest U.S. retailers allow potential new CBD product sales, he contends, adding that Village Farms can easily convert into cannabis cultivation once federally legal in the U.S. and Mexico.
07/22/19
CHLM
07/22/19
INITIATION
Target $30
CHLM
Buy
Village Farms initiated with a Buy at Craig-Hallum
Craig-Hallum analyst Eric Des Lauriers initiated Village Farms with a Buy rating and a price target of $30, saying the company is becoming a "dominant" cannabis cultivator and has a large opportunity in U.S. hemp space. The analyst notes that Village Farms is exceeding cannabis yield and quality expectations and believes the company has a low-cost path to becoming a dominant cultivator, with potential to "far exceed" consensus estimates beginning in 2020.
10/09/19
CHLM
10/09/19
NO CHANGE
CHLM
Vaping crisis underscores need to lift cannabis prohibition, says Craig-Hallum
Craig-Hallum analyst Eric Des Lauriers notes that the vaping crisis has taken a turn for the worse as severe respiratory illnesses have injured over 1,000 and claimed the lives of 18. Most patients reported using illicit vapes containing THC, the primary psychoactive compound in cannabis, while others reported using nicotine-only vapes, perplexing health officials, he notes. The analyst believes vape additives - not cannabis or nicotine - are causing the outbreak and researching the many additives found in vapes will take time, creating near-term headwinds. Ultimately, he sees certain additives being banned, not vaporizers as a whole. Longer-term, the vape crisis will be an industry tailwind, underscoring the need to regulate cannabis, he argues. The analyst sees less than 1% of Green Thumb Industries' (GTBIF) sales currently at risk, but in a worst-case scenario, the company could see about 25% of sales at risk. Even without vapes, he believes Green Thumb Industries can generate $1B-plus revenues with its existing licenses. Additionally, the analyst sees virtually no impact to Village Farms' (VFF) current revenue outlook.

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