Village Farms International Applauds Texas Department of Health and Human Services Actions in Descheduling Hemp and Initiates Selective Breeding Program

VANCOUVER , March 26, 2019 /CNW/ - Village Farms International, Inc. ("Village Farms" or the "Company") (VFF) (VFF) applauds the actions of the Texas Department of Health and Human Services in descheduling hemp, including its cannabinoids (except for delta-9 tetrahydrocannabinol (THC)) in compliance with the 2018 Farm Act and Texas law.  Under Texas law, the removal of hemp from the controlled substances schedule will be effective on April 5, 2019 , 21 days after the schedule's publication.   Texas still must pass a hemp bill to enable the creation of a State Hemp Plan under the 2018 Farm Act and develop a thoughtful regulatory regime to support the hemp industry and protect consumers.

Village Farms plans to commence hemp cultivation in a portion of its Monahans, Texas , greenhouse operation upon a State Hemp Plan in Texas becoming effective, or earlier if permitted by Texas law.  In anticipation of the Texas legislation passing, Village Farms has begun design and development of the site-specific growing and technical systems to enable hemp production at the Monahans facility.

"The descheduling of hemp in Texas is a very encouraging step forward and we would like to publicly acknowledge the efforts of all those working in support of the full legalization of hemp in Texas with thanks in particular to lobbyist Susan Hays and the U.S. Hemp Roundtable," said Michael DeGiglio , Chief Executive Officer, Village Farms. "We look forward to the opportunity to work with officials in Texas toward a roll out of hemp production, including the processing and sale of CBD products."

Mr. DeGiglio added, "With the potential for passage of a hemp bill in Texas by the end of this coming May, we are readying a portion of our Monahans greenhouse to be able to commence production quickly upon legalization.  Upon legalization, we also plan to initiate an outdoor hemp cultivation program in Texas through our joint venture Village Fields."

Village Farms Initiates Genetics Testing and Trials to Support Large-Scale Commercial Outdoor and Greenhouse Hemp Production

Village Farms also announced that it has initiated a selective breeding program in tandem with genetic testing to support both its commercial scale indoor and outdoor hemp production programs.  The initiative aims to accelerate the development of true-to-type chemical varieties (chemovars), desirable cannabinoid characteristics including high CBD content and low THC levels at crop maturation that are compliant with federally mandated criteria, as well as developing new varieties suitable for specific climates with increased production yields.    

Additionally, Village Farms' joint venture, Village Fields, has reserved substantive quantities of seed to support the initiation of field cultivation as soon as legally permitted.  As previously announced, Village Fields plans to have 500 to 1,000 acres in production during 2019.  Village Fields also plans to have extraction capabilities in place by the end of 2019 to enable it to begin supplying CBD oil on a wholesale basis while it commences production of branded CBD products for "big box" retailers in 2020. Village Fields intends to conduct its operations in locations where it is fully legal to do so on a federal and state level.

About Village Farms International, Inc.

Village Farms is one of the largest and longest-operating vertically integrated greenhouse growers in North America and the only publicly traded greenhouse produce company in Canada . Village Farms produces and distributes fresh, premium-quality produce with consistency 365 days a year to national grocers in the U.S. and Canada from more than nine million square feet of Controlled Environment Agriculture (CEA) greenhouses in British Columbia and Texas , as well as from its partner greenhouses in British Columbia , Ontario and Mexico.  The Company is now leveraging its 30 years of experience as a vertically integrated grower for the rapidly emerging global cannabis opportunity through its 50% ownership of British Columbia -based Pure Sunfarms Corp., one of the single largest cannabis growing operations in the world.  The Company also intends to pursue opportunities to become a vertically integrated leader in the U.S. hemp-derived CBD market, subject to compliance with all applicable U.S. federal and state laws.  Village Farms has established a joint venture, Village Fields Hemp, for multi-state outdoor hemp cultivation and CBD extraction and plans to pursue controlled environment hemp production at its Texas greenhouse operations, subject to legalization of hemp in Texas .