Exhibit 99.1
Material Change Report
Item 1 | Name and Address of Company |
Village Farms International, Inc. (“Village Farms”)
4700 - 80th Street
Delta, British Columbia
V4K 3N3
Item 2 | Date of Material Change |
March 29, 2019.
A news release relating to the material change was disseminated through the facilities of CNW Group on April 1, 2019.
Item 4 | Summary of Material Change |
Village Farms announced that its 50%-owned joint venture for large-scale,low-cost, high-quality cannabis production, Pure Sunfarms, has exercised its option on the existing 1.1 million square foot Delta 2 greenhouse facility currently owned by Village Farms in Delta, British Columbia. The addition of the Delta 2 greenhouse operation doubles Pure Sunfarms’ total production area to 2.2 million square feet and, with conservatively targeted annual production of approximately 75,000 kilograms of dried cannabis, doubles its annual cannabis production potential to approximately 150,000 kilograms.
Item 5 | Full Description of Material Change |
5.1 - Full Description of Material Change
Village Farms announced that its 50%-owned joint venture for large-scale,low-cost, high-quality cannabis production, Pure Sunfarms, has exercised its option on the existing 1.1 million square foot Delta 2 greenhouse facility currently owned by Village Farms in Delta, British Columbia. The Delta 2 facility is a newer, nearly identical “sister” facility immediately adjacent to the 1.1 million square foot Delta 3 greenhouse facility.
Pure Sunfarms also expects to benefit from further economies of scale resulting from the concentration of 2.2 million square feet of production area at a single location, which will further support Village Farms’ goal to be the high-quality,low-cost cannabis producer in Canada. The existing automated propagation operation (nursery) in the Delta 3 facility will provide propagation for the Delta 2 facility, enabling more of the footprint of the Delta 2 facility to be devoted to flower rooms than in Delta 3, which is expected to generate further cost efficiencies.
Pure Sunfarms will immediately begin design and procurement for the conversion of the Delta 2 facility for cannabis production. As with the Delta 3 facility, Pure Sunfarms plans a phased conversion to expedite time to production and revenue generation. Conversion of the external infrastructure, including that for the electrical distribution