Pure Sunfarms is one of the largest cannabis producers in the world and was profitable in both the fourth quarter of 2018 and first quarter of 2019, during both of which its Delta 3 greenhouse was ramping up and operating at well under full production.
Pure Sunfarms has commenced conversion of its second 1.1 million square foot greenhouse operation, Delta 2, for cannabis production, which will double Pure Sunfarms’ annual output at full production to 150,000 kilograms. Pure Sunfarms expects to complete its first harvest at the Delta 2 facility bymid-2020, ramp to full run rate annual production by the fourth quarter of 2020, and operate at full production of 75,000 throughout 2021.
U.S. Outdoor Hemp Production Program on Track to Realize First Sales in 2019
Village Farms also announced that its program for outdoor cultivation of high-cannabidiol (CBD) hemp and CBD extraction is progressing on plan. The Company’s joint venture for hemp production and processing in the Eastern U.S., Village Fields Hemp, has planted out nearly 600 acres in Virginia, North Carolina and South Carolina and expects to begin harvesting in August of this year, with initial sales of hemp biomass to commence in the fourth quarter of 2019. Village Fields Hemp is now well advanced in planning and engineering work to establish its centralized extraction operations, which will be based in Georgia. Village Fields extraction operations are expected to be operational in the first quarter of 2020.
In addition, the Company’s joint venture for hemp production and processing in Colorado, Arkansas Valley Green and Gold Hemp, has planted out 120 acres and expects to begin harvesting in October 2019. The Company continues to expect Arkansas Valley Green and Gold Hemp to have extraction operations in place and begin processing crude CBD oil in early 2020.
In anticipation of beginning large-scale outdoor hemp production this year, Village Farms secured sufficient quantities of hemp seed early in 2019 to enable production at its planned scale.
“Our outdoor hemp cultivation program is well underway and remains on track to realize its first sales from biomass this year and from crude CBD oil early next year as we quickly move into the development and manufacture of our own CBD products,” said Mr. DeGiglio. “The rapid roll out of our program is a major step forward in the pursuit of our goal to become a vertically integrated consumer packaged goods supplier of CBD products to “big box” and other major retailers, as well as to other consumer packaged goods companies.”
Conversion of Permian Basin Greenhouse for Hemp Production and CBD Extraction Steadily Advancing
Village Farms continues the conversion of half of its 1.3 million square foot Permian Basin greenhouse operation in West Texas for hemp production and CBD extraction. The Company expects the Permian Basin facility to be ready for hemp production in the fourth quarter of 2019, with extraction operations to be added in the existing facility in early 2020.