VANCOUVERBritish Columbia, November 15, 2021 – PRESS RELEASE – Village Farms International, Inc. (Village Farms) announced it has acquired 70% ownership of privately-held, Québec-based ROSE LifeScience (ROSE), a vertically integrated branded cannabis producer, supplier and commercialization expert in the Province of Québec. The transaction is valued at up to $46.7 million. ROSE becomes the Québec operational unit of Village Farms’ Canadian cannabis business segment, with ROSE’s headquarters and the existing team remaining in Québec.

ROSE is a third-party cannabis products commercialization expert in the Province of Québec, acting as the exclusive, direct-to-retail sales, marketing and distribution entity for Entourage Health, Sundial, Tilray and The Flowr Corporation and 10 Québec micro and craft growers throughout Québec. ROSE also distributes to Québec retail its brand of high-quality cannabis products. Tam Tams is grown and processed at ROSE’s Québec-based, Health Canada-licensed 55,000-square-foot controlled environment agriculture (CEA), purpose-built facility in Huntingdon, which was commissioned in 2020. ROSE also enables a platform for commercialization in the market for several Québec-based micro-producers under its DLYS brand.

Highlights of the Acquisition

Adds a substantial presence in the Province of Québec as a cannabis supplier, producer and commercialization expert, which represents approximately 15% of total Canadian retail cannabis sales at the current annualized run rate of more than $627 million, the vast majority of which is dried flower and pre-rolled products;Adds experienced, Québec-based industry professionals who will join the Village Farms/Pure Sunfarms team, bolstering extensive existing relationships in the Québec cannabis market and leveraging specialized, deep experience in both consumer-packaged goods and regulated industries; and,Adds a Québec-based 55,000-square-foot, health Canada-licensed CEA cultivation and processing facility

“The acquisition of ROSE, by far the most successful Québec-based cannabis operator in our view, is a prudent and strategic means by which to enter and rapidly ramp sales in one of Canada’s largest provincial cannabis markets,” said Michael DeGiglio, Village Farms CEO. “ROSE adds an exceptional group of Québec-based experts to our Canadian cannabis operations. The team has a proven track record of success, and shares our belief in the importance of cultivation excellence, as well as the advantage of innovation and continuous improvement. We look forward to building on ROSE’s strong foundation in the Québec market, with a long-term commitment to the company’s Québec heritage.”

“ROSE immediately expands our reach to more than 90% of all Canadian retail cannabis sales and represents a major step forward in Pure Sunfarms’ strategy to become the leading national supplier of cannabis in Canada, with at least a 20% market share in the dried flower category,” said Mandesh Dosanjh, Pure Sunfarms president and CEO. “ROSE is very well respected in the Québec cannabis industry, with a reputation for leadership and brand strategy success that we have come to know well and respect. We look forward to pursuing the new opportunities, both near-term and long-term, created by the addition of ROSE as our Québec-based cannabis operational unit.”

“We have long admired the success of Village Farms and Pure Sunfarms in the Canadian cannabis industry. We are proud to join forces with them to accelerate our successes and seize this opportunity to further evolve the industry in our home province of Québec,” said Davide Zaffino, ROSE co-founder, president and CEO. “We cherish our Québec roots and deeply believe in our province’s culture and values. As always, we remain committed to ensuring that Québec benefits from the responsible production, sale and consumption of cannabis. As part of the outstanding family of cannabis businesses within Village Farms, we are even better positioned to continue playing this leading role in the Québec landscape.”

 

 

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