VANCOUVER, British Columbia — Village Farms International Inc. will expand the its cannabis cultivation capacity by converting the remaining 550,000 sq. ft. of its Delta 2 greenhouse in Delta, British Columbia to cannabis production.
An incremental 40 metric tonnes of annual production capacity is expected to come online in phases, with the first planting of new grow rooms in the spring of 2026. The conversion process is expected to begin in November 2025 and will require approximately CAD $10 million in capital expenditures throughout the duration of the project, which is expected to be fully ramped by the first quarter of 2027. The project will be funded with existing cash on hand, with the majority of the capital expenditures related to the project expected to occur in calendar year 2026.
President and Chief Executive Officer Michael A. DeGiglio commented, “We are pleased to announce this capacity expansion, which will enable us to continue supporting our Canadian and International customers with the consistent supply of quality products they expect from Village Farms. Our business is growing organically, with market conditions across the globe aligning favorably with the competitive strengths we’ve established through nearly 40 years in controlled environment agriculture. We expect these trends to continue, and that this investment will help drive profitable growth in 2026 and beyond.”
The completion of the Delta 2 greenhouse conversion will result in 2.2 million sq. ft. of operational cannabis production, increasing production square footage by approximately 33 percent and expanding the Company’s position as one of the single largest cannabis producers in the world. The Company owns an incremental 2.6 million sq. ft. of advanced greenhouse capacity through its Delta 1 greenhouse, which provides additional flexibility to continue scaling profitably with increasing global cannabis demand in the future.
DeGiglio concluded, “I am very proud of our operating team’s discipline and execution, and the way our Canadian cannabis team has consistently and profitably matched our supply with demand over the past several years. We have always taken a crawl, walk, run approach to scaling our operations, and we are pleased to utilize the strength of our balance sheet and reward our team with the incremental capacity they need to continue building our leadership position in global cannabis.”
About Village Farms International Inc.
Village Farms leverages decades of experience in Controlled Environment Agriculture as a large-scale, vertically-integrated supplier of high-value, high-growth plant-based Consumer Packaged Goods. The Company built a strong foundation as the leading and longest-tenured fresh produce supplier to grocery and large-format retailers throughout the US and Canada, but now focuses its agricultural expertise on high-growth cannabinoid opportunities internationally.
