When it comes to the cannabis space, Village Farms (TSX: VFF) (NASDAQ: VFF) appears to have a passion for joint ventures. The company announced this morning that it has entered into a definitive agreement for a joint venture in the Netherlands to tackle the first emerging recreational cannabis space in Europe.
The arrangement, established with a firm called DutchCanGrow, places Village Farms in a joint venture with six other shareholders. Village will be entitled to a 16% ownership in the firm, which is looking to become one of the firms licensed by the Dutch government to grow recreational cannabis.
The license, if granted, would be one of ten in the country for the purpose, and would be issued under what is called the “10-city Experiment to Investigate Closed Cannabis Supply Chains,” or WEGG for short. Following the grant of such a license, the joint venture would construct and operate a cannabis greenhouse facility. If granted, its anticipated that annual demand would be roughly 65,000 kilograms of dried cannabis.
Village Farms’ portion of the joint venture is said to be paid with a “de minimis cash investment,” with the firm largely providing experience to the arrangement.
Village Farms last traded at $5.17 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.
