Village Farms International Announces听Expansion of Cultivation Capacity in Delta, British Columbia
Village Farms International (NASDAQ: VFF) has announced a significant expansion of its cannabis cultivation capacity through the conversion of 550,000 sq. ft. of its Delta 2 greenhouse in British Columbia. The expansion will add 40 metric tonnes of annual production capacity, increasing the company's total production square footage by 33% to 2.2 million sq. ft.
The CAD $10 million project will commence in November 2025, with first plantings scheduled for spring 2026 and full ramp-up expected by Q1 2027. The expansion will be funded through existing cash reserves, with most capital expenditures occurring in 2026. The company maintains an additional 2.6 million sq. ft. of greenhouse capacity through its Delta 1 facility for future scaling opportunities.
Village Farms International (NASDAQ: VFF) ha annunciato un'importante espansione della sua capacit脿 di coltivazione di cannabis tramite la conversione di 550.000 piedi quadrati della sua serra Delta 2 in British Columbia. Questa espansione aggiunger脿 40 tonnellate metriche di capacit脿 produttiva annua, aumentando la superficie totale di produzione dell'azienda del 33%, raggiungendo 2,2 milioni di piedi quadrati.
Il progetto, del valore di 10 milioni di dollari canadesi, inizier脿 a novembre 2025, con le prime piantagioni previste per la primavera del 2026 e il pieno regime operativo atteso entro il primo trimestre del 2027. L'espansione sar脿 finanziata con le riserve di cassa esistenti, con la maggior parte delle spese in conto capitale che si concentreranno nel 2026. L'azienda dispone inoltre di ulteriori 2,6 milioni di piedi quadrati di capacit脿 in serra presso la struttura Delta 1 per future opportunit脿 di crescita.
Village Farms International (NASDAQ: VFF) ha anunciado una importante expansi贸n de su capacidad de cultivo de cannabis mediante la conversi贸n de 550,000 pies cuadrados de su invernadero Delta 2 en Columbia Brit谩nica. La expansi贸n a帽adir谩 40 toneladas m茅tricas de capacidad anual de producci贸n, aumentando la superficie total de producci贸n de la compa帽铆a en un 33% hasta alcanzar 2.2 millones de pies cuadrados.
El proyecto, con un costo de 10 millones de d贸lares canadienses, comenzar谩 en noviembre de 2025, con las primeras plantaciones programadas para la primavera de 2026 y se espera que la producci贸n est茅 a plena capacidad para el primer trimestre de 2027. La expansi贸n se financiar谩 con las reservas de efectivo existentes, concentr谩ndose la mayor铆a de los gastos de capital en 2026. La empresa mantiene adem谩s una capacidad adicional de 2.6 millones de pies cuadrados en su instalaci贸n Delta 1 para futuras oportunidades de expansi贸n.
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Village Farms International (NASDAQ : VFF) a annonc茅 une expansion significative de sa capacit茅 de culture de cannabis gr芒ce 脿 la conversion de 550 000 pieds carr茅s de sa serre Delta 2 en Colombie-Britannique. Cette expansion ajoutera 40 tonnes m茅triques de capacit茅 de production annuelle, portant la surface totale de production de l'entreprise 脿 2,2 millions de pieds carr茅s, soit une augmentation de 33 %.
Le projet, d'un montant de 10 millions de dollars canadiens, d茅butera en novembre 2025, avec les premi猫res plantations pr茅vues au printemps 2026 et une mont茅e en puissance compl猫te attendue au premier trimestre 2027. L'expansion sera financ茅e par les r茅serves de tr茅sorerie existantes, la majorit茅 des d茅penses en capital 茅tant pr茅vues pour 2026. L'entreprise dispose 茅galement d'une capacit茅 suppl茅mentaire de 2,6 millions de pieds carr茅s dans son installation Delta 1 pour de futures opportunit茅s d'expansion.
Village Farms International (NASDAQ: VFF) hat eine bedeutende Erweiterung seiner Cannabis-Anbaukapazit盲t durch die Umwandlung von 550.000 Quadratfu脽 seines Gew盲chshauses Delta 2 in British Columbia angek眉ndigt. Die Erweiterung wird die j盲hrliche Produktionskapazit盲t um 40 metrische Tonnen erh枚hen und die gesamte Produktionsfl盲che des Unternehmens um 33% auf 2,2 Millionen Quadratfu脽 steigern.
Das 10 Millionen kanadische Dollar teure Projekt beginnt im November 2025, mit ersten Bepflanzungen im Fr眉hjahr 2026 und einer vollst盲ndigen Hochlaufphase bis zum ersten Quartal 2027. Die Erweiterung wird aus bestehenden Barreserven finanziert, wobei die meisten Investitionsausgaben im Jahr 2026 anfallen. Das Unternehmen verf眉gt zudem 眉ber weitere 2,6 Millionen Quadratfu脽 Gew盲chshauskapazit盲t in seiner Delta 1-Anlage f眉r zuk眉nftige Wachstumsm枚glichkeiten.
- None.
- CAD $10 million capital expenditure required for the project
- Full ramp-up not expected until Q1 2027
- Extended timeline with first plantings not starting until spring 2026
Insights
Village Farms' $10M expansion adds 33% cannabis production capacity, strengthening global market position and supporting profitable future growth.
Village Farms' decision to convert an additional 550,000 square feet of its Delta 2 greenhouse represents a strategic capacity expansion that will significantly enhance its production capabilities. This conversion will increase the company's cannabis cultivation footprint by approximately 33%, adding an estimated 40 metric tonnes of annual production capacity once fully implemented.
The CAD $10 million capital investment is particularly noteworthy for its disciplined financial approach. The company plans to fund this expansion entirely through existing cash reserves, with most expenditures occurring in 2026. This self-funding approach demonstrates strong balance sheet management and operational cash flow generation, avoiding dilutive financing or additional debt.
The phased implementation strategy - beginning construction in November 2025, first planting in spring 2026, and reaching full capacity by Q1 2027 - reflects Village Farms' cautious "crawl, walk, run" expansion philosophy. This methodical approach has served them well historically by ensuring supply aligns with actual market demand.
Once completed, Village Farms will operate 2.2 million square feet of cannabis production space, cementing its position among the world's largest cannabis producers. The company retains additional growth potential through its Delta 1 greenhouse (2.6 million square feet), providing substantial flexibility to scale further as global demand increases.
This expansion directly supports Village Farms' international growth strategy, addressing increasing demand from both Canadian and global markets while maintaining their focus on profitable operations - a distinguishing characteristic in an industry often plagued by overexpansion and unprofitability.
Company to convert incremental 550,000 sq. ft. of advanced greenhouse to cannabis production
Phased expansion plan expected to provide additional 40 tonnes of annual production once complete
Increased capacity will support continued profitable growth in Canadian and International markets
VANCOUVER, British Columbia, Aug. 04, 2025 (GLOBE NEWSWIRE) -- Village Farms International, Inc. (鈥淰illage Farms鈥� or the 鈥淐ompany鈥�) (NASDAQ: VFF) today announced that its Board of Directors has unanimously approved an investment to expand the Company鈥檚 cannabis cultivation capacity by converting the remaining 550,000 sq. ft. of its Delta 2 greenhouse in Delta, British Columbia to cannabis production.
An incremental 40 metric tonnes of annual production capacity is expected to come online in phases, with the first planting of new grow rooms in the spring of 2026. The conversion process is expected to begin in November 2025 and will require approximately CAD
President and Chief Executive Officer Michael A. DeGiglio commented, 鈥淲e are pleased to announce this capacity expansion, which will enable us to continue supporting our Canadian and International customers with the consistent supply of quality products they expect from Village Farms. Our business is growing organically, with market conditions across the globe aligning favorably with the competitive strengths we鈥檝e established through nearly 40 years in controlled environment agriculture. We expect these trends to continue, and that this investment will help drive profitable growth in 2026 and beyond.鈥�
The completion of the Delta 2 greenhouse conversion will result in 2.2 million sq. ft. of operational cannabis production, increasing production square footage by approximately 33 percent and expanding the Company鈥檚 position as one of the single largest cannabis producers in the world. The Company owns an incremental 2.6 million sq. ft. of advanced greenhouse capacity through its Delta 1 greenhouse, which provides additional flexibility to continue scaling profitably with increasing global cannabis demand in the future.
Mr. DeGiglio concluded, 鈥淚 am very proud of our operating team鈥檚 discipline and execution, and the way our Canadian cannabis team has consistently and profitably matched our supply with demand over the past several years. We have always taken a crawl, walk, run approach to scaling our operations, and we are pleased to utilize the strength of our balance sheet and reward our team with the incremental capacity they need to continue building our leadership position in global cannabis.鈥�
About Village Farms International, Inc.
Village Farms leverages decades of experience in Controlled Environment Agriculture as a large-scale, vertically-integrated supplier of high-value, high-growth plant-based Consumer Packaged Goods. The Company built a strong foundation as the leading and longest-tenured fresh produce supplier to grocery and large-format retailers throughout the US and Canada, but now focuses its agricultural expertise on high-growth cannabinoid opportunities internationally.
In Canada, the Company's wholly owned Canadian subsidiary, Pure Sunfarms, is one of the single largest cannabis operations in the world (2.2 million square feet of greenhouse production), a low-cost producer and one of Canada鈥檚 highest quality and best-selling brands. The Company owns an incremental 2.6 million square feet of greenhouse capacity in Canada for future expansion, and also owns
Internationally, Village Farms is targeting selected, nascent, legal cannabis opportunities with significant growth potential. The Company exports medical cannabis from its EU GMP certified facility in Canada to international markets including Germany, the United Kingdom, Israel, Australia, and New Zealand. The Company is expanding its export business to new countries and customers, and making select investments in international production assets. In Europe, wholly-owned Leli Holland has one of 10 licenses to grow and distribute recreational cannabis within the Dutch Coffee Shop Experiment.
In the US, wholly-owned Balanced Health Botanicals is one of the leading CBD and hemp-derived brands and e-commerce platforms in the country. Subject to compliance with all applicable US federal and state laws and stock exchange rules, Village Farms plans to enter the US THC market via multiple strategies, leveraging its Texas-based greenhouse assets (2.2 million square feet of existing greenhouse capacity and 950 acres of owned, unoccupied land for future expansion).
Village Farms Clean Energy (VFCE), through a partnership with Atlanta-based Terreva Renewables, creates renewable natural gas from landfill gas at its Delta RNG facility. VFCE receives royalties on all revenue generated. This partnership reduces Vancouver鈥檚 greenhouse gas emissions by 475,000 metric tons of CO2 per year, equivalent to removing more than 100,000 vehicles off the road or the energy use equivalent of powering 51,300 homes for one year.
The Company also holds a 37.9 percent equity ownership interest in Vanguard Food LP, a privately held joint venture with private investment firms which seeks to create a premier branded CPG foods company through M&A. Vanguard Food LP expects to continue acquiring other produce assets and operations with the support of its private investment firm partners, and will review various products and companies across many production methods while expanding its platform.
Cautionary Statement Regarding Forward-Looking Information听
As used in this Press Release, the terms 鈥淰illage Farms鈥�, 鈥淰illage Farms International鈥�, the 鈥淐ompany鈥�, 鈥渨e鈥�, 鈥渦s鈥�, 鈥渙ur鈥� and similar references refer to Village Farms International, Inc. and our consolidated subsidiaries, and the term 鈥淐ommon Shares鈥� refers to our common shares, no par value. Our financial information is presented in U.S. dollars and all references in this Press Release to 鈥�$鈥� means U.S. dollars and all references to 鈥淐$鈥� means Canadian dollars.听
This Press Release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the U.S. Securities Act of 1933, as amended, (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and is subject to the safe harbor created by those sections. This Press Release also contains "forward-looking information" within the meaning of applicable Canadian securities laws. We refer to such forward-looking statements and forward-looking information collectively as "forward-looking statements". Forward-looking statements may relate to the Company's future outlook or financial position and anticipated events or results and may include statements regarding the financial position, business strategy, budgets, expansion plans, litigation, projected production, projected costs, capital expenditures, financial results, taxes, plans and objectives of or involving the Company. Particularly, statements regarding future results, performance, achievements, prospects or opportunities for the Company, the greenhouse vegetable or produce industry, the cannabis industry and market and our energy segment are forward-looking statements. In some cases, forward-looking information can be identified by such terms as "can", "outlook", "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "try", "estimate", "predict", "potential", "continue", "likely", "schedule", "objectives", or the negative or grammatical variation thereof or other similar expressions concerning matters that are not historical facts. The forward-looking statements in this Press Release are subject to risks that may include, but are not limited to: our limited operating history in the cannabis and cannabinoids industry, including that of Pure Sunfarms, Corp. (鈥淧ure Sunfarms鈥�), Rose LifeScience Inc. (鈥淩ose鈥� or 鈥淩ose LifeScience鈥�) and Balanced Health Botanicals, LLC (鈥淏alanced Health鈥�); the limited operational history of the Delta RNG Project in our energy segment; the legal status of the cannabis business of Pure Sunfarms and Rose and the hemp business of Balanced Health and uncertainty regarding the legality and regulatory status of cannabis in the United States; risks relating to the integration of Balanced Health and Rose into our consolidated business; risks relating to obtaining additional financing on acceptable terms, including our dependence upon credit facilities and dilutive transactions; potential difficulties in achieving and/or maintaining profitability; variability of product pricing; risks inherent in the cannabis, hemp, CBD, cannabinoids, and agricultural businesses; our market position and competitive position; our ability to leverage current business relationships for future business involving hemp and cannabinoids; the ability of Pure Sunfarms and Rose to cultivate and distribute cannabis in Canada; existing and new governmental regulations, including risks related to regulatory compliance and regarding obtaining and maintaining licenses required under the Cannabis Act (Canada), the Criminal Code and other Acts, S.C. 2018, C. 16 (Canada) for its Canadian operational facilities, and changes in our regulatory requirements; legal and operational risks relating to expected conversion of our greenhouses to cannabis production in Canada and in the United States; risks related to rules and regulations at the U.S. Federal (Food and Drug Administration and United States Department of Agriculture), state and municipal levels with respect to produce and hemp, cannabidiol-based products commercialization; retail consolidation, technological advances and other forms of competition; transportation disruptions; product liability and other potential litigation; retention of key executives; labor issues; uninsured and underinsured losses; vulnerability to rising energy costs; inflationary effects on costs of cultivation and transportation; recessionary effects on demand of our products; environmental, health and safety risks, foreign exchange exposure, risks associated with cross-border trade; difficulties in managing our growth; restrictive covenants under our credit facilities; natural catastrophes; elevated interest rates; and tax risks.听
The Company has based these forward-looking statements on factors and assumptions about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs. Although the forward-looking statements contained in this Press Release are based upon assumptions that management believes are reasonable based on information currently available to management, there can be no assurance that actual results will be consistent with these forward-looking statements. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond the Company's control, which may cause the Company's or the industry's actual results, performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, the factors contained in the Company's filings with securities regulators, including the Company鈥檚 most recently filed Quarterly Report on Form 10-Q and the Company鈥檚 most recently filed annual report on Form 10-K.听
When relying on forward-looking statements to make decisions, the Company cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future results, performance, achievements, prospects and opportunities. The forward-looking statements made in this Press Release relate only to events or information as of the date on which the statements are made in this Press Release. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.听
Contact Information
Sam Gibbons
Senior Vice President, Corporate Affairs
Phone: (407) 936-1190 ext. 328
Email:
FAQ
How much additional cannabis production capacity will VFF's Delta 2 greenhouse expansion add?
What is the total cost of Village Farms' Delta 2 greenhouse expansion project?
When will Village Farms' Delta 2 greenhouse expansion be fully operational?
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