Village Farms (TSX: VFF) (NASDAQ: VFF) has seen its investee DutchCanGrow Inc, based in the Netherlands, be one of the losers of the lottery process that was conducted in the country. The process was used as a means of awarding ten cannabis production licenses under the governments experiment to investigate closed cannabis supply chains.
With the outcome of the randomized drawing, DutchCanGrow was pulled 18th out of the 40 applications that qualified in the initial process. The drawing effectively places the company as 8th in line on a waiting list for a license. Those that were drawn for a license will now be subjected to a thorough review process of both business and personal affairs under the Public Administration Act within the Netherlands, which is expected to be completed in eight to twelve weeks.
Of the 150 initial applicants, as per Village Farms, only 40 were considered for the lottery process. The company has claimed that they made the investment into DutchCanGrow believing that the licenses were to be awarded based on merit, not random draw.
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The company is one of seven shareholders in the Dutch firm, six of whom, including Village Farms, hold an equal position of “just under 16% each.” The seventh shareholder holds a 5% stake in the firm.
Village Farms last traded at $10.83 on the Nasdaq.
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.
