Québec-based ROSE LifeScience announces its majority acquisition by vertically integrated greenhouse grower Village Farms International
HUNTINGDON, QC, Nov. 15, 2021 /CNW Telbec/ - Privately-held, Québec-based ROSE LifeScience Inc. ("ROSE"), a leading vertically integrated branded cannabis producer, supplier, and commercialization expert in the Province of Québec, has announced 70% of its ownership has been acquired by Village Farms International, Inc. ("Village Farms" or the "Company") (NASDAQ:VFF) (TSX:VFF), effective today. ("Closing Date").
The transaction is valued at up to C$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 leading 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 own 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 Québec 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 in the Province of Québec, which represents approximately 15%1 of total Canadian retail cannabis sales at the current annualized run rate of more than C$627 million1, the vast majority of which is dried flower and pre-rolled products;
- Adds experienced, Québec-based industry leaders 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 Controlled Environment Agriculture (CEA) cultivation and processing facility, which is included in the transaction.
ROSE Management Commentary "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, co-founder and President and Chief Executive Officer, ROSE. "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."
Village Farms Management Commentary "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, CEO, Village Farms. "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%1 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, President and Chief Executive Officer, Pure Sunfarms. "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 pursing the new opportunities, both near-term and long-term, created by the addition of ROSE as our Québec-based cannabis operational unit."
Notes 1. Statcan. Based on data as at August 31, 2021.
About ROSE LifeScience Inc. As a private Québec company, ROSE LifeScience is committed to ensuring that Québec benefits from the responsible production, sale, and consumption of cannabis. From cannabis cultivation to marketing, commercialization, and logistics, the Huntingdon, QC company plays a key role in the provincial market. In addition to its own products and expertise, ROSE provides specialized industry services to selected producers to encourage a diversified offer on the Québec market. For more information, visit www.roselifesience.ca.
About Village Farms International, Inc. Village Farms leverages decades of experience as a large-scale, Controlled Environment Agriculture-based, vertically integrated supplier for high-value, high-growth plant-based Consumer Packaged Goods opportunities, with a strong foundation as a leading fresh produce supplier to grocery and large-format retailers throughout the US and Canada, and new high-growth opportunities in the cannabis and CBD categories in North America and selected markets internationally.
In Canada, the Company's wholly-owned Canadian subsidiary, Pure Sunfarms, is one of the single largest cannabis operations in the world, the lowest-cost greenhouse producer and one of Canada's best-selling brands. The Company also owns 70% of Québec-based, ROSE LifeScience, a leading third-party cannabis products commercialization expert in the Province of Québec. In the US, wholly-owned Balanced Health Botanicals is one of the leading CBD brands and e-commerce platforms in the country. Subject to compliance with all applicable US federal and state laws and stock exchange rules, Village Farms plans to enter the US high-THC cannabis market via multiple strategies, leveraging one of the largest greenhouse operations in the country (more than 5.5 million square feet in West Texas), as well as the operational and product expertise gained through Pure Sunfarms' cannabis success in Canada. Internationally, Village Farms is targeting selected, nascent, legal cannabis and CBD opportunities with significant medium- and long-term potential, with an initial focus on the Asia-Pacific region and Europe.
SOURCE ROSE LifeScience
For further information: Contact Information: Valentine Vaillant, VP, Marketing and Sales, ROSE LifeScience, (438) 989-6654, [email protected]; Lawrence Chamberlain, Investor Relations, LodeRock Advisors, (416) 519-4196, [email protected]