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Village Farms International commences build-out of Netherlands cannabis facility

(Globe Newswire) Vancouver and Drachten, Netherlands — Village Farms International, Inc. has commenced the build-out of its first indoor cannabis production facility in Drachten, Netherlands.

Through its majority-owned (85 per cent) subsidiary, Leli Holland, Village Farms holds one of 10 licenses permitting it to legally produce and distribute recreational cannabis in the Netherlands under the Dutch Program. The company is targeting start of production for the fourth quarter of 2024. Leli Holland plans to sell flower and hash products across consumer-preferred formats, including pre-rolls. Village Farms plans to fund the build-out of the Drachten facility from cash on hand.

The Drachten facility, with capacity of up to 2,500 kg of dried flower annually, is the first of two facilities Village Farms has planned to supply the Netherlands legal recreation cannabis market under the Dutch Program. The second, larger facility, to be located in nearby Groningen, has planned capacity of up to 10,000 kg annually with production beginning as early as 2026.

“As a limited license market with a long-established consumer base and a cannabis-friendly regulatory environment, the Netherlands represents a very attractive near-term opportunity in our international cannabis strategy,” said Michael DeGiglio, president and chief executive officer of Village Farms.

“We are thrilled to build on our rich history in the Netherlands to leverage our experience as a leading, profitable cannabis business in Canada for this first major European recreational market. Our two-phased approach to ramping up production enables us to enter the market in a timely and capital efficient manner in line with the roll out of the Dutch Program. We look forward to contributing to the success of the Dutch Program, as well as the communities in which our facilities will reside.”