Village Farms Expands Global Cannabis Capacity as International Growth Accelerates

Key Points

• Village Farms is transitioning into a standalone global cannabis company after selling its legacy produce business, with approximately $23 million in trailing net income, $33 million in net cash and about 40% of sales coming from international markets.
• The company expects to add roughly 100 metric tons of cannabis capacity by the end of 2028, including a 40-metric-ton expansion in British Columbia and a fivefold increase in production capacity at its Netherlands facility.
• International expansion is central to the growth strategy: Village Farms’ global cannabis business is nearing a $100 million revenue run rate, exports to several countries and plans to enter additional European markets, while also evaluating global acquisitions and future U.S. opportunities.

• Village Farms International NASDAQ: VFF Stock is a Unique Cannabis ESG Play

Village Farms International NASDAQ: VFF said it is expanding cannabis production capacity and pursuing growth in international markets as the company positions itself as a standalone global cannabis operator following the sale of its legacy produce business.

Speaking at an industry event, Sam Gibbons, Village Farms’ senior vice president of corporate affairs and investor relations, said the company had a market capitalization of approximately $310 million as of the prior Monday’s close and generated about $23 million of trailing 12-month net income. He said Village Farms held a net cash position of roughly $33 million.

“We are profitable. We are sustainably profitable,” Gibbons said, adding that about 40% of sales are coming from high-growth international markets.

Production Expansion Through 2028

Village Farms said it expects approximately 100 metric tons of new production capacity to come online by the end of calendar 2028. The company currently has about 7.2 million square feet of production assets globally.

In British Columbia, Village Farms is completing a conversion project at its Delta 2 greenhouse. The project is expected to be completed around year-end and fully ramped by the middle of next year, adding roughly 40 metric tons of dried, trimmed flower capacity. Gibbons said the Delta campus could ultimately produce about 160 metric tons and retains room for additional expansion.

The company also has a 60-acre Delta 1 greenhouse that is currently under a produce supply agreement with Verdexa Holdings. Village Farms has an option to convert 25% of that facility per year to cannabis production over the next several years, Gibbons said.

In the Netherlands, Village Farms recently completed construction of a facility in Groningen that will serve as its European headquarters. The facility is expected to be fully ramped by the end of the first quarter of next year. The Netherlands expansion is expected to increase the company’s production capacity there by about five times, to roughly 10 metric tons.

International Markets Drive Growth Strategy

Gibbons said Village Farms is the largest exporter of medical cannabis to Europe and currently exports products to Germany, Australia, New Zealand and the United Kingdom. He said the company expects to enter multiple additional European jurisdictions in the coming months.

The company’s international business is approaching a $100 million U.S. revenue run rate, according to Gibbons. He said the company sees the potential to double its addressable market for products produced at its Delta facilities as international markets develop.

Village Farms’ Delta production site is now the world’s largest EU GMP-certified cannabis production facility, Gibbons said. The company first obtained EU GMP certification in 2022, was recertified in 2024 and completed facility upgrades earlier this year.

Asked about competition from U.S. operators seeking to enter Europe, Gibbons said Village Farms views its position as durable because certification alone does not ensure commercial success.

“You can get the certification all you want, but are you going to have demand for your product if you cannot continually, consistently deliver quality product at an affordable price that consumers love?” he said.

Gibbons acknowledged that price compression has occurred as cannabis markets mature in the U.S. and Canada. However, he said Village Farms expects pricing for its EU GMP-compliant capacity to remain relatively stable “for the foreseeable future.”

Standalone Cannabis Company and U.S. Optionality

Village Farms sold its legacy produce business in April 2025 in a transaction involving private-equity firms, becoming a cannabis-focused company. As part of that transaction, it sold about 40 acres of Texas greenhouse capacity to Verdexa Holdings, in which Village Farms retains an ownership stake of nearly 38%.

Gibbons said the company’s remaining West Texas assets total 2.2 million square feet and could represent an estimated $400 million U.S. revenue opportunity if cannabis participation becomes permissible under a future regulatory environment.

He also discussed uncertainty surrounding hemp-derived THC products in the U.S., including a pending ban referenced for Dec. 11. The company operates CBDistillery, a direct-to-consumer CBD e-commerce platform, and sees possible long-term opportunity if CBD products gain access to a Medicare pilot program.

Capital Allocation and M&A

Gibbons said Village Farms funded most of its expansion spending through cash on hand and internal cash flow. During the first six months of the year, the company paid approximately $17 million in Canadian income taxes, spent $15 million on capital projects, and completed a $7 million share repurchase.

In June, Village Farms completed a $15 million private placement with two U.S. institutional investors. Gibbons said Citadel was the lead participant and now owns 5.5% of Village Farms.

The company is also evaluating strategic acquisition opportunities. Former Chief Financial Officer Steve Ruffini has moved into a role leading mergers and acquisitions, Gibbons said.

“The opportunity set is global,” Gibbons said in response to a question about potential M&A markets. “We’ve got attractive options pretty much everywhere.”

About Village Farms International (NASDAQ:VFF)

Village Farms International, Inc NASDAQ: VFF is an agriculture company that grows, markets and distributes fresh produce and cannabis. Its produce business focuses on greenhouse-grown tomatoes, cucumbers and peppers, including conventional and organic offerings sold under the Village Farms brand and through retail and foodservice channels.

The company operates greenhouse and distribution facilities in the United States, Canada and Mexico, serving grocery retailers, wholesalers and foodservice customers across North America.

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