Adam JacksonVillage Farms International Inc. (NASDAQ: VFF) is looking to boost its cash flow and profitability by launching a renewable natural gas facility in British Columbia.
The grower of cannabis and vegetables also regained compliance with Nasdaq’s minimum closing bid price of $1 per share and celebrated its cannabis product dominance across Canada.
Natural gas venture
The company partnered with Terreva Renewables to launch the Delta RNG facility in British Columbia. The facility will convert landfill gas into renewable natural gas, which will be sold under a long-term contract.
“We are proud to contribute to environmental sustainability, while at the same time transitioning Village Farms Clean Energy’s model to one that will generate incremental cash flow, profitability, and value for our shareholders, beginning immediately,” President and CEO Michael DeGiglio said in a statement.
Under the terms of the partnership, Village Farms’ subsidiary, Village Farms Clean Energy, will receive royalty payments based on the revenue generated by the Delta RNG facility. Terreva Renewables will maintain ownership and operational control of the facility.
The Delta RNG Project is expected to contribute nearly 3% of British Columbia’s targeted renewable natural gas volumes, supporting the province’s goal of reducing greenhouse gas emissions by 30% by 2030 and achieving net zero emissions by 2050.
Market share growth
Meanwhile, Village Farms has grown its market share in Canada for eight consecutive months, outpacing the growth of its competitors in the top five licensed producers, according to estimated retail sales from HiFyre, other third parties and provincial boards.
Provincial data from the Ontario Cannabis Store indicated that the company regained the top spot in Ontario, Canada’s most populous province, and its brands, such as Big Pleasures, D. Burger, and Pure Sunfarms’ Pink Kush, have consistently led sales in the large format category.
The company’s Super Toast brand also emerged as a top-growth brand in Canada, capturing a 20% share of the milled category.
The dominance extends beyond Ontario, with the company solidifying its number two position as a top producer nationally, according to estimated retail sales from WeedCrawler from Jan. 1 to March 31. In Quebec, Canada’s second most populous province, Village Farms increased its market share from approximately 4% to 15% over the past two years.
The company also maintains the number one position in Quebec’s flower category, with two of the top four brands, Promenade and Pure Laine, belonging to its subsidiary, Rose LifeScience, according to WeedCrawler data.
In Alberta, the firm achieved an all-time high market share of 8% in February, gaining nearly three share points since September, according to sales information provided by Alberta Gaming, Liquor and Cannabis. The company’s performance in three of the four largest Canadian provinces has met or exceeded its national market share rank.
