Village Farms Acquires Option To Take 80% Stake In Dutch Cannabis License Holder

Village Farms (TSX: VFF) is evidently focused on the international markets. The company this morning revealed that it has entered into an option agreement to acquire an 80% stake in Leli Holland BV, a Netherlands-based cannabis license holder.

The option itself is said to have been acquired for EUR50,000, with the option enabling the firm to acquire a full 80% stake in the company. Once exercised, taking the 80% stake will cost the firm roughly EUR4.0 million, of which EUR1.0 million will be due immediately, and the remainder of which is based on development timelines.

Leli Holland is said to be one of just ten firms that was selected by lottery to receive a license for the cultivation and distribution of cannabis under the “Dutch Supply Chain Experiment.” The program will mark the first legal cannabis market in Europe on a recreational basis, with the program expected to run for an initial four years.

Currently, the two firms plan to jointly develop two indoor production facilities. Village is said to be responsible for the project development and commercialization, as well as managing ongoing operations, product development, branding and marketing, once it is a majority owner.

The option is exercisable at the direction of Village Farms.

Village Farms last traded at $10.77 on the TSX.


Information for this briefing was found via Sedar and Village Farms International. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

First Majestic Posts Record Quarterly Silver Production In Q3

Nord Precious Metals Produces High Grade Silver Concentrate From Tailings

Related News

Village Farms Reports Q3 Sales Of US$72.4 Million, Net Income

Third quarter financial results this morning were released by Village Farms International (TSX: VFF). The...

Tuesday, November 9, 2021, 07:29:26 AM

Village Farms Reports Q2 Revenues Of US$70.4 Million, Net Loss

Village Farms (TSX: VFF) (NASDAQ: VFF) this morning reported its second quarter financial results. The...

Monday, August 9, 2021, 08:06:49 AM

Village Farms: Raymond James Estimates Q4 Revenues Of US$55.4 Million

Village Farms (TSX: VFF) (NASDAQ: VFF) will be reporting their fourth quarter and year-end financials...

Monday, March 15, 2021, 02:43:00 PM

Village Farms: Raymond James Remains Bullish With Dutch Venture Announcement

Yesterday, Village Farms (TSX: VFF) (NASDAQ: VFF) indicated that they would become a 16% shareholder...

Thursday, July 9, 2020, 10:15:58 AM

Village Farms Gets A Boost From Raymond James

Last Thursday, Raymond James’ increased their 12-month price target on Village Farms (TSX: VFF) (NASDAQ:...

Monday, January 25, 2021, 04:11:28 PM