VANCOUVER - Village Farms International, Inc. (NASDAQ:VFF), a major player in the produce and cannabis industries, has increased its stake in Rose LifeScience Inc., a Quebec-based cannabis company, by 10%, now holding an 80% interest. This strategic move, announced today, builds on the initial 70% acquisition and aims to strengthen Village Farms' position in the Canadian cannabis market.
The additional shares were acquired from Rose's co-founders, Davide Zaffino and Brian Stevenson, who will retain a combined 20% ownership and continue in their current leadership roles. Since Village Farms first acquired a majority stake in Rose in late 2021, the partnership has seen Rose's sales surge by over 300%, propelling both companies to the number two market share position in their respective regions.
Village Farms' CEO, Michael DeGiglio, highlighted the successful collaboration between Rose and Village Farms' subsidiary, Pure Sunfarms, attributing the growth to the combined expertise of both teams. Zaffino also expressed enthusiasm for the opportunity to expand their business while maintaining a strong focus on the Quebec market.
Rose LifeScience plays a critical role in Quebec's cannabis sector, engaging in responsible production, sale, and consumption of cannabis, as well as offering specialized services to selected producers to foster a diverse market. With this increased investment, Village Farms reinforces its commitment to the industry, leveraging its extensive experience in controlled environment agriculture and consumer packaged goods.
This announcement is based on a press release statement and contains forward-looking statements subject to risks, including the integration of acquisitions and the regulatory landscape. The forward-looking statements reflect the company's current expectations and are not guarantees of future performance.
Investors are watching closely as Village Farms continues to navigate the evolving cannabis market, with plans to expand into the U.S. high-THC cannabis market, subject to compliance with federal and state laws, as well as exploring opportunities internationally.
InvestingPro Insights
As Village Farms International (NASDAQ:VFF) takes a firmer hold of Rose LifeScience to cement its position in the Canadian cannabis arena, real-time metrics from InvestingPro paint a detailed financial picture of the company.
Village Farms is trading at a low Price / Book multiple of 0.44, which may attract investors looking for potentially undervalued stocks. Moreover, the company's stock has demonstrated a strong return over the last year, with an impressive 81.14% increase, signaling robust investor confidence and market performance.
InvestingPro Tips suggest that while analysts are not expecting profitability this year, Village Farms has managed to maintain a moderate level of debt and its liquid assets exceed short-term obligations, indicating a stable financial footing.
Still, it is worth noting that the stock generally trades with high price volatility, which could be a consideration for risk-averse investors. For those interested in exploring further, there are 13 additional InvestingPro Tips available for Village Farm, offering deeper insights into the company's financial health and market position. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription for more exclusive insights.
The InvestingPro Data also reveals a quarterly revenue growth of 20.76% as of Q1 2024, suggesting that the company is experiencing significant top-line expansion. This growth may reflect the successful integration of acquisitions such as Rose LifeScience and the strategic moves the company is making within the competitive cannabis market. Village Farms' proactive approach in solidifying its market share and expanding its influence could be a key driver for future revenue streams and market positioning.
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