Deep Dive: Village Farms eyes expansion in hemp, cannabis

Download the full Deep Dive on Village Farms International here.

Village Farms International (Nasdaq: VFF; TSX: VFF) is one of the few companies in the marijuana and hemp industries with a positive consensus EPS estimate for 2019.

If the company successfully executes its marijuana and hemp expansion plans, it has the potential for a multiyear earnings growth story that could be among the best in class in the cannabis industry.

Canada-based Village Farms is one of the largest producers of premium quality greenhouse tomatoes, bell peppers and cucumbers in North America. The company is in the process of transforming to capitalize on the Canadian marijuana market and the U.S. hemp and CBD market by:

  • Creating a joint venture, Pure Sunfarms, that gives Village Farms access to the Canadian cannabis market.
  • Entering into several joint ventures and developing internal, fully integrated growing, extraction and production to tap into U.S. hemp and CBD opportunities.

The company is still in the early stages of this strategy, so there will be a lot of operational change in the coming years.

We believe Village Farms’ cultivation expertise and experience mean that its joint ventures can be long-term winners in the marijuana and hemp cultivation space.

More about VFF’s strategy, management, capital structure and potential is available in our in-depth report here.

Craig Behnke can be reached at [email protected].