Village Farms exits produce, focuses on cannabis growth

Village Farms International, Inc., based in Vancouver, has officially completed the privatization of its fresh produce business as of May 30, 2025. This strategic move positions the company to concentrate entirely on expanding its cannabis operations.

Following this transaction, Village Farms holds a net cash position which it plans to leverage to strengthen its presence in the global cannabis market. The company’s CEO, Michael A. DeGiglio, expressed enthusiasm about this new direction, stating that after eight years of cultivating its cannabis business through lessons learned over 35 years in agriculture, Village Farms is ready to pursue cannabis independently from its produce operations.

With the sale, Village Farms retains ownership of 160 acres of advanced greenhouse facilities, enhancing its ability to tap into international markets. The company has established export channels for medical cannabis, currently distributing products to countries like Germany, the United Kingdom, Israel, Australia, and New Zealand. In Canada, its subsidiary, Pure Sunfarms, is one of the largest cannabis operations globally, featuring 2.2 million square feet of greenhouse production capacity.

Village Farms has plans for future growth, including an additional 2.6 million square feet of greenhouse space in Canada. The company also holds a significant stake in Rose LifeScience, a leader in cannabis product commercialization in Quebec.

On the international front, Village Farms is investing in emerging legal cannabis markets with high growth potential. In Europe, its subsidiary Leli Holland operates under one of the few licenses to grow and distribute recreational cannabis within the Netherlands’ Coffee Shop Experiment. In the U.S., Balanced Health Botanicals—another of its subsidiaries—functions as a prominent CBD and hemp-derived brand, with plans to expand into the THC market as regulations allow, utilizing its existing greenhouse facilities in Texas.

Additionally, Village Farms is pursuing environmental initiatives through its Clean Energy division. A partnership with Terreva Renewables allows the company to convert landfill gas into renewable natural gas, significantly reducing greenhouse gas emissions in Vancouver. This initiative is projected to decrease emissions by 475,000 metric tons of CO2 annually.

The company is also a stakeholder in Vanguard Food LP, which aims to build a leading branded consumer packaged goods company through acquisitions. Vanguard Food LP plans to continue acquiring produce operations with the backing of its private investment partners.

Village Farms intends to release pro forma financial statements within the next four business days, reflecting the impact of the privatization on its financial standing for the first quarter of 2025 and the years ending December 31, 2024, and 2023. This transition marks a significant pivot in the company’s strategy, focusing solely on the cannabis sector and positioning itself for substantial growth in the evolving market.