Transformative Transaction with Vanguard Foods
Village Farms has signed an agreement to privatize its fresh produce division into a joint venture called Vanguard Foods LP, retaining a 37.9% stake and receiving $40 million in cash. This is expected to unlock long-term value for both the cannabis and produce businesses.
Strong Growth in Canadian Cannabis Segment
Canadian cannabis gross margin expanded from 25% to 36%, with adjusted EBITDA up 75% year-over-year. International medical export sales grew 285% year-over-year, contributing to the momentum.
Netherlands Operations Begin Contribution
Leli Holland subsidiary in the Netherlands reported its first revenue contribution of nearly half a million dollars, with adjusted EBITDA at breakeven within the first month of operations.
Positive Cash Flow and Strong Financial Performance
Adjusted EBITDA and net income increased by 75% and 291% respectively, with another quarter of positive cash flow from operations.