Village Farms International Inc. (NASDAQ:VFF) To Convert Half The Permian Basin Greenhouse For Hemp Activities

Village Farms International Inc. (NASDAQ:VFF) To Convert Half The Permian Basin Greenhouse For Hemp Activities

Village Farms International Inc. (NASDAQ:VFF) has announced
that with the House of Representatives agreeing with the changes made by Senate
on the House Bill 1325 it will now become law in Texas pending approval from
the governor by June 16, 2019.

Village Farms to convert half of the Permian Basin
facility for hemp activities

Following the
amendments to the Texas Hemp Legislation, Village Farms has started converting
half of its 1.3 million sq ft ultra-modern Permian Basin greenhouse for growing
of high CBD hemp and CBD extraction. The legislation will require the company
to have hemp cultivation and processing licenses. Village Farms will apply for
these requisite licenses once it is permitted to do so under the amended
legislation.

The company began
converting around 635,000 square feet of cultivation area in the Permian Basin
greenhouse for hemp growing with the construction team has already removed the
tomato crop. The process of conversion includes all the necessary systems for
all year hemp growing, but Village Farms could begin hemp cultivation if
licensed to do so.

Production in Permian Basin to commence in Q3 2019

The company
expects the Permian Basin facility to be ready for production in Q3 2019 with
extraction operations expected to be added later. With the passage of the Farm
Bill last year the company began preparing site-specific cultivation and
technical systems in readiness for conversion once the Texas hemp bill is
passed.

Village Farms CEO
Michael DeGiglio said that with the possibility of the Texas hemp bill being
passed they already had prepared part of the Permian Basin facility which means
the company will be a first mover in the hemp industry in the state. He added
that the CBD market is expected to reach $16 billion by 2025 and with the
passage of the bill, the company will now aggressively work towards hemp
cultivation and extraction in Texas.

The Permian Basin
facility is the most technologically advanced in the globe and its bases on
Village Farms’ novel Gates technology that uses complex computer systems and
software to regulate the greenhouse.

Published at Fri, 07 Jun 2019 15:08:29 +0000