Village Farms Completes Divestiture of Fresh Produce Business to Focus on Cannabis

LOS ANGELES- Village Farms International Inc. has finalized the transaction to privatize its fresh produce operations, marking a strategic shift to concentrate on its cannabis ventures. The deal, completed on May 30, 2025, involves the transfer of the majority of its produce assets to Vanguard Food LP, a joint venture with private investment firms including Sweat Equities.

Under the terms, Village Farms received $40 million in cash and retains a 37.9% equity stake in Vanguard. The company also maintains ownership of certain greenhouse facilities in Texas and British Columbia, which are earmarked for potential future cannabis cultivation.

This divestiture allows Village Farms to allocate more resources toward its cannabis operations. Its Canadian subsidiary, Pure Sunfarms, operates 2.2 million square feet of greenhouse space and reported $34.8 million in cannabis sales in Q1 2025. The company also holds an 80% stake in Rose LifeScience Inc., a cannabis producer in Quebec, and owns Leli Holland BV, a licensed cannabis producer in the Netherlands.

Internationally, Village Farms exports medical cannabis from its EU GMP-certified facility in Canada to markets including Germany, the United Kingdom, Israel, Australia, and New Zealand. In the United States, its subsidiary Balanced Health Botanicals develops and sells cannabidiol (CBD) products.

Following the transaction, Village Farms plans to file unaudited pro forma condensed consolidated financial information to illustrate the effect of the transaction on its financial statements for recent periods.