Village Farms Eyes Global Cannabis Growth With EU GMP Edge and Net Cash

Village Farms is targeting international cannabis growth through its EU GMP-certified Delta facility, which supports exports to Germany, the U.K., Australia and New Zealand. International cannabis sales are approaching a CAD 100 million annualized run rate, while its Netherlands operations are expanding toward approximately 10 metric tons of annual capacity. The company is increasing Canadian production as it completes the Delta 2 greenhouse conversion, adding about 40 metric tons of annual capacity and lifting Canadian output by roughly 33% versus fiscal 2025. Village Farms currently uses only about 30% of its global 7.2 million-square-foot cultivation footprint, leaving substantial expansion potential. Village Farms has a net-cash balance sheet and expects improving free cash flow after major expansion spending winds down, with CAD 73 million of cash and approximately CAD 33 million in net cash at the end of the second quarter. Its Texas greenhouse assets also provide long-term U.S. cannabis optionality, although the company is waiting for greater regulatory clarity. Village Farms International NASDAQ: VFF Stock is a Unique Cannabis ESG Play Village Farms International NASDAQ: VFF told investors at the iAccess Alpha Virtual Best Ideas Fall Investment Conference that it is positioned for further growth in international cannabis markets, supported by greenhouse capacity, EU GMP certification and a net-cash balance sheet. Sam Gibbons, senior vice president of corporate affairs and investor relations, said Village Farms is a global cannabis pure-play following the May 2025 privatization of its legacy produce business. The company has approximately $290 million in trailing 12-month sales and a market capitalization of about $350 million, according to Gibbons. Get VFF alerts: Sign Up “We are profitable. We are one of the most profitable cannabis companies in the world,” Gibbons said, citing the company’s scale, low-cost production platform and potential to expand production as demand rises. Production Capacity and Canadian Operations Village Farms operates 7.2 million square feet of greenhouse and indoor cultivation assets globally, though it is currently cultivating cannabis on roughly 30% of that footprint, Gibbons said. Its largest assets are located in Delta, British Columbia, and West Texas, while it also operates indoor facilities in Quebec and has completed a facility in the Netherlands. The company’s Delta production campus includes 4.8 million square feet of capacity and is described by Village Farms as the world’s largest single-site EU GMP-certified cannabis production facility. Gibbons said EU GMP certification is important for supplying compliant cannabis products to European markets. The company is nearing completion of a conversion of the second half of its Delta 2 greenhouse to cannabis production. Delta 2 and Delta 3 are expected to produce about 160 metric tons of dried, trimmed cannabis flower annually, excluding trim. The Delta 2 project is expected to add approximately 40 metric tons of capacity, representing a 33% increase in Canadian production capacity compared with fiscal 2025, according to Gibbons. Village Farms currently produces more than CAD 200 million in trailing 12-month sales from Delta 3 and half of Delta 2, he said. The company also has the option to convert portions of its Delta 1 greenhouse from produce to cannabis production, at a rate of up to 25% annually over the next four or five years. International Markets and Netherlands Expansion Gibbons said international cannabis sales, including the Netherlands business, are approaching a CAD 100 million annualized run rate. Village Farms exports medical...