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DD for December

Small DD!
About Village Farms International, Inc.

Amongst the best value marijuana stock on the Nasdaq with some really good recent annoncement n a promising future.(https://www.investopedia.com/investing/top-marijuana-stocks-nasdaq/)
Newly the sole owner of Pure sunfarm, a cannabis compagny selling in Ontario n some other provinces.
Village Farms International, Inc., together with its subsidiaries, produces, markets, and distributes greenhouse-grown tomatoes, bell peppers, and cucumbers in North America. It operates through three segments: Produce Business, Energy Business, and Cannabis and Hemp Business. The company also owns and operates a 7.0 megawatt power plant that generates and sells electricity to British Columbia Hydro and Power Authority; and produces and supplies cannabis products. It markets and distributes its products under the Village Farms brand name to retail supermarkets and fresh food distribution companies, as well as products produced under exclusive arrangements with other greenhouse producers. The company was formerly known as Village Farms Canada Inc. and changed its name to Village Farms International, Inc. in December 2009. Village Farms International, Inc. was founded in 1989 and is headquartered in Delta, Canada
Village Farms is one of the largest and longest-operating greenhouse growers in North America, and is leveraging its decades of experience in large-scale, low-cost intensive agriculture and as a vertically integrated produce supplier to pursue high-value, high-growth plant-based Consumer Packaged Goods opportunities in cannabis and CBD in North America and selected markets internationally.

In Canada, British-Columbia-based Pure Sunfarms is one of the single largest cannabis operations in the world, the lowest-cost greenhouse producer, one of the best-selling brands, and has generated profitability for seven consecutive quarters.

In the U.S., subject to compliance with all applicable U.S. federal and state laws, Village Farms is pursuing a strategy to become a leading developer and supplier of branded and white-labeled CBD products targeting “big box” and other major retailers and consumer packaged goods companies, and with one the largest greenhouse operations in country, is well positioned for the potential federal legalization of high-THC cannabis.

Internationally, Village Farms is strategically targeting selected, nascent, legal cannabis and CBD opportunities with significant long-term potential, with an initial focus on the Asia-Pacific region through its investment in Australia-based Altum International.
Village Farms International, Inc. (“Village Farms” or the “Company”) (NASDAQ: VFF) (TSX: VFF) today announced two positive developments with respect to its wholly owned Canadian cannabis subsidiary, Pure Sunfarms.

Pure Sunfarms Receives Cannabis Research License for On-Site Sensory Evaluation from Health Canada

Pure Sunfarms has received from Health Canada its Cannabis Research License to conduct human administration trials for sensory evaluation of cannabis, enabling it to engage in on-site assessments of the taste, sight, smell or touch of its products at its Delta 3 cannabis facility in Delta, British Columbia.

“This license provides us with significant new opportunities in the formulation and refinement of our products, and underscores our commitment to innovation and the advancement of the Canadian cannabis consumer experience,” said Mandesh Dosanjh, President and Chief Executive Officer, Pure Sunfarms. “We look forward to leveraging this new capability to continue to extend Pure Sunfarms’ product leadership and further strengthen what is already one of Canada’s best-selling cannabis brands.”

Pure Sunfarms Brand Debuts Internationally in Hong Kong

Pure Sunfarms will be featured as part of a limited-edition Lane Crawford x Found CBD-infused gift set to be sold in the luxury department store’s holiday pop-up shops in Hong Kong this holiday season. The luxury gift sets will feature Pure Sunfarms branded CBD gummies created specifically for the Hong Kong consumer, among other CBD-inspired items such as chocolates, bath salts, and tea bags. The co-branded Lane Crawford and Found holiday pop-up shops aim to educate consumers and elevate their awareness of CBD.

The inclusion of Pure Sunfarms-branded CBD products was facilitated through a partnership between Altum International Limited’s (“Altum”) Found, Asia-Pacific’s first CBD retail platform and cafe, and Lane Crawford, an iconic luxury department store in Greater China. In August 2020, Village Farms acquired 6.6% of Australia-based Altum, one of the Asia-Pacific’s leading cannabinoid platforms.

“We’re so pleased for the Pure Sunfarms’ brand to make its debut internationally, alongside such prestigious and progressive partners as Altum and Lane Crawford,” said Mr. Dosanjh. “This is just the beginning of what’s to come for Pure Sunfarms as we look to share our love of plants and B.C.-grown cannabis products with the global cannabis market.”

“We are particularly excited to be able to present in Asia-Pacific for the first time, Pure Sunfarms, Canada’s market-leading cannabis brand,” Fiachra Mullen, Chief Marketing Officer for Altum International. “We believe that the leading cannabis brands in the Canadian market will hold a special place in the Hong Kong consumer’s heart. We are incredibly proud to have their trust in helping them access the Asia-Pacific markets for the first time through the most progressive cannabinoid jurisdiction in the region - Hong Kong.”

About Altum International

Altum International is a cannabinoid company born from its founders’ desire to bring the life-changing benefits of cannabis back to the Asia-Pacific. Through its Hong Kong headquarters, Altum is disrupting the status quo of decades past by importing, distributing and marketing a curated range of high-quality cannabinoid products across the region in a compliant and cost-effective manner.

In early 2020, Altum launched a line of consumer-friendly CBD products (Felix & Co), as well as plug-and-play CBD inputs for business operators (LIFE CBD) in the Hong Kong market. Following this, Altum launched Found, Asia-Pacific’s first CBD retail platform and cafe - designed to educate consumers and elevate category awareness. The August 2020 completion of a strategic investment from Village Farms has further fueled Altum’s growth aspirations for 2021 and beyond.

As per the supply agreement, Pure Sunfarms, a wholly owned Canadian cannabis subsidiary of Village Farms International (NASDAQ:VFF) to supply a range of its branded, high quality, B.C.-grown cannabis products to the customers of Medical Cannabis by Shoppers Inc., a subsidiary of Shoppers Drug Mart (over 1300 locations!
Pure Sunfarms expects selected dried flower products to be available for sale on the Medical Cannabis by Shoppers ecommerce portal nationally as early as next month and selected pre-roll, bottled oil and vape products to be available in early 2021.
Pure Sunfarms' 28-gram (1-ounce) package offering will be the first large-format cannabis offering listed by Medical Cannabis by Shoppers.
(Source is the website that Reddit doesn't seems to like(copy the link n remove the space) : see kingalpha.com/news/3639363-village-farms-subsidiary-inks-supply-agreement-medical-cannabis-shoppers)
The analyst said on a revenue basis, VFF’s recent run-up has corrected the stock’s discount “somewhat” but not enough to entirely eliminate the asymmetry, where he sees VFF to be currently trading at 5.9x 2021 and 3.4x 2022 EV/Revenue, which would represent 20 and 34 per cent discount to its peer group.

With the new update, Sarugaser has reiterated his “Strong Buy 1” rating with a target price of US$20.00, which at press time represented a projected 12-month return of 113 per cent.

“Should the stock show any weakness from profit-taking [on Tuesday] (although pre-market trading implies a strong open), we would continue to see this as a very good entry point into what is, in our view, Canada’s premier cannabis operator (and U.S. dark horse),” Sarugaser wrote.

Vancouver-based Village Farms has more than nine million sq ft of greenhouse in North America and is comprised of three businesses: production and distribution of produce in the US, Canada and through partner growers in Mexico, production and distribution of cannabis products in Canada via Pure Sunfarms and production and distribution of hemp and hemp-derived CBD in the US.

Pure Sunfarms began as a joint venture with Emerald Health at a 50/50 split. Village Farms has progressively bought out Emerald Health since then, completing the move with an announcement on November 2 that it had acquired the remaining shares.

“The acquisition of the entirety of Pure Sunfarms is a defining moment for Village Farms, furthering our transformation to a vertically integrated, plant-based consumer packaged goods company,” said Village Farms CEO Michael DeGiglio in a press release. “It allows us to fully leverage the invaluable cannabis expertise Village Farms has gained in combination with the organizational strength underlying the Village Farms produce business to pursue high-growth opportunities in emerging legal cannabis and CBD markets in the United States and targeted markets internationally.”

On Monday, Village Farms announced a Health Canada research license for PSF to conduct on-site human administration trials for sensory evaluation of cannabis, which gives the company “significant new opportunities in the formulation and refinement of our products and underscores our commitment to innovation and the advancement of the Canadian cannabis consumer experience,” said Mandesh Dosanjh, President and CEO of Pure Sunfarms in a press release.

In the same release, VFF announced that PSF-branded CBD products will make their international debut in Hong Kong over the holiday season through a partnership with Altum International, an Asia-Pacific CBD retail platform and café and Chinese luxury department store Lane Crawford.

Earning call transcript
"And I will note that only a small percentage, less than 5%, of Q3 revenue was generated by the launch of our 2.0 products, which was very late in the quarter. That drove a sequential quarterly increase in net income of 200% to $3.2 million. The third takeaway from the quarter is that the value of managing our business with prudence and discipline. From day one we have built and guarded Pure Sunfarms' profitability and return on invested capital. [...] We are encouraged by this activity, as it could mean better supply demand dynamics going forward. We believe this cost quality advantage, combined with our long-term capacity, will be a significant competitive advantage for the foreseeable future. And we will continue to believe that we could supply as much as 30% to 35% of the total Canadian cannabis flower market would B.C.-grown product, in addition to being a leading brand in excess of 20% of the retail channel. I do want to remind everyone that with the acquisition of the entirety of Pure Sunfarms, our Village Farms is now free to use our 2.6 million-square-foot Delta 1 facility for cannabis, production anytime we deem that it makes sense to proceed.[...]y. Internationally, we have invested in strategic partnerships like in Asia Pacific, company Altum, which is making steady progress on the execution of its strategy, initially focused on the Hong Kong market. So, turning now to our produce business for a moment. As I noted in the onset, Village Farms has had another good quarter.

The continuing strong price performance with tomatoes drove higher sales, and our continued progress in transition and growing capacity displayed through cannabis to our partner growers, as well as our continued focus on cost management contributed to a $4.2 million EBITDA turnaround into a positive $2.2 million. While these numbers are important in and of themselves, as you have heard me say many times, what is also critical, important is the breadth and depth of the strength of the organization to the lives of produce business. It is the engine that is powering our outsize growth opportunities in cannabis and related opportunities, both domestically and internationally. I'd like to turn the call over to Steve, who'll talk through our financial results. [...]Our produce business. Produce sales of $43 million for the quarter increased over 12% versus Q3, 2019 on the back of our average selling price of tomatoes increasing 30% year on year on lower tomato volumes, as we had no production from our Delta 2 facility in 2020, as is now being converted to cannabis production, as Mike mentioned.

The increase in produce selling prices essentially rolls directly into our gross margin, as there is no impact on our cost of sales. As such, we saw a year-on-year improvement in our Q3 gross margin of $6.2 million to $5.6 million from a loss in the prior third quarter of 2019, of $600,000. Our produce business had a 13% gross margin for the quarter. The incremental increase in our gross margin was driven by the higher selling price and lower tomato volumes, again due to the diversion of the Delta 2 facility.

Produce EBITDA increased by $4.2 million year on year to $2.2 million on the back of the improvement in our produce gross margin, which was offset by a lower year-on-year add-back depreciation since the Delta 2 facility was not in production, and a higher year-on-year SG&A in Q3, 2020 versus Q3, 2019 of $1.2 million, which is primarily related to substantive expenses involved with the acquisition of the financing of the remaining Pure Sunfarms shares. I should note that these incremental SG&A expenses are not truly related to the produce business, but are more corporate in nature. Supply shortages due to the increase in grocery store traffic certainly helped to produce pricing in the late spring and throughout the summer of 2020. I'd like to extend our sincere thanks to all the Village Farms employees who have continued to work all out on growing, distributing, and supporting our Village Farms produce brands, by getting our fresh produce on the shelves, our strategic retail partners in both the U.S.

and Canada. [...] The late-quarter launch of Pure Sunfarms 2.0 products contributed 4.5% of sales this quarter, and wholesale sales made up the balance of 47% of our sales. With the retail channel totaling 53% of sales Pure Sunfarms quarter-on-quarter growth and retail sales of 30% was driven by 166% increase in its small format SKUs, and a 30% increase in pre-rolls, which were offset by a 43% decrease in Pure Sunfarms retail large-format sales. The large-format sales in this quarter were as expected ongoing replenishment sales as compared to the second quarter, which were driven by higher launch-related sales. Our quarter-on-quarter average selling price did result in a 13.3% increase, which was driven by the increase in the ratio of our small format sales versus our large format sales, which enhances our margins, as well as an increase in the blended net wholesale pricing for the third quarter versus the second quarter, the wholesale pricing were driven by spot market dynamics.

We mentioned sequential sales growth looking ahead to Q4. While we continue to experiencing continuing month-and-month, year-on-year growth in our retail and wholesale businesses, I want to remind investors that Q4, 2019 was marked by the pullback of retail buying by prevention buyers who are managing the conversion to Cannabis 2.0 and their year-over-year inventory. To date, we have not seen any indication of this reoccurring, while Pure Sunfarms and our competitors still operate in a relatively new distribution system. And there remain many external economic factors, not to mention the pandemic that could slow our strong momentum.[...]Gross margin for the quarter was 34.6% versus 33.4% in Q2, versus 68.6% in Q3 of 2019, which had a totally different demand dynamic. This quarter's cost of sales includes an inventory writedown of CAD1.4 million, $1 million for the distillate inventory purchased earlier for which the market value has dropped since our purchase. Without the write down, Pure Sunfarms adjusted gross margin was 40.7%, which is a true reflection of the actual gross margins achieved against this quarter. The remaining distillate inventory has been assessed versus the market value, and there's no need for any further distillates write down.

The distillate will be used in Cannabis 2.0 products in Q4 and early 2021. We received finally of the Pure Sunfarms extraction license from Health Canada in September, and will enhance our gross margin in Cannabis 2.0 products. The vapes in the market today were manufactured by third party extractor, as such the margin on these SKUs was lower than on our flower products in the third quarter. We expect our Cannabis 2.0 products to have a higher volume as we manufacture our own vape pens and other Cannabis 2.0 products in the coming quarters.

It was important for Pure Sunfarms to launch these vapes and oil in advance to obtain extraction license due to the ongoing success of its flower plant.[...]SG&A expenses for the quarter for Pure Sunfarms decreased approximately 13% year over year,[...]As you can see from our Q3 gross margin percentage of 40.7% without the distillate inventory writedown, as compared to our Q2 gross margin of 33.4%, we continue our strong financial performance, consistent with the virtuous circle that Mike spoke of earlier. It is simply not in our commercial interests to be telling our customers our cost of production on margins. We have demonstrated a low-cost production and brand quality.[...]The Village Farms and Pure Sunfarms balance sheets continue to be on solid ground to support our ongoing businesses in the term gross objectives. Both entities have borrowing capacity on their existing bank loans. As we decided on September 30, 2020, for the first time my tenure at Village Farms, we had a net cash position of $22 million.

Of course, we just paid CAD60 million or $40 million to complete the acquisition of Pure Sunfarms on November 2, as well as issued a CAD19.9 million note or balance of $15 million due on May 2, 2021 to complete the acquisition. So, we're back into our normal net debt position as of today, but we are on firm financial ground with our ongoing positive cash flow from operations in both produce and cannabis. Speaking of, as I mentioned earlier, our pro forma, as we mentioned our closing press release earlier this month, Pure Sunfarms have been fully consolidated in Village Farms results beginning on November 2.[...]This momentum combined with an unmatched North American assets totaling over 10.5 million square feet, more than half of which is in the United States, and which no other cannabis company in the United States or Canada has, is why we continue to be so confident in our prospects for low and high THC cannabis markets in the U.S. and internationally. We have the considerable benefit of being able to pursue these opportunities funded by our produce business, which again is performing quite well.f you remember last year,[...]-we didn't have our sales license, so basically almost into the fourth quarter of last year. So, it's been one year. So, we can't really look at how we performed last year.

[S]aid in his comments, it was a different market last year, and we were selling solely 100% wholesale from the first, second, third quarter. So, for us, getting some historical data going forward is what we need. The second quarter of this year and to an extent the third was really impacted by COVID, especially the second quarter [...]Well, there is progress. I mean, we're still, you know, eyeballing Quebec. The team's doing a lot there. It's not an easy penetration, but we feel confident that slowly we'll make an entree into that, and that's clearly at the top of the pinnacle right now is Quebec.

But, you know, I think what's more interesting for us is finally the traction that Ontario and British Columbia showing in opening stores. I mean, Ontario's talking about, you know, in the realm of 40-50, 30 to 50, 30 to 60, stores promoting on the month, looking at 500 stores by April, doubling that to a thousand by next September, that is very, very exciting for us. We've had conversations on greater capacity. And I think British Columbia is moving in that -- not as aggressively.
maybe if you can just sort of elaborate more generally, given the -- you know, the recent changes in the U.S. at the federal level. How you see things playing out? And how those farms would be able to compete generally, relative to the MSOs which, you know, are quite in favor at the moment?

We believe that interstate commerce will happen.

And I think that's one area that that's where we shine the best. You just can't have five, seven, eight production facilities in a given state, indoor five, six, seven growers or one grower going around if you're going to really try to have incredible strains and consistency. So, one example with MSOs is, as successful as they are, and they will be more successful, especially the national ones, big-market cap see pockets no doubt, but they're going to have to find how they can be cost effective. Because in the end, like we've proven in Canada, things will get competitive.

And even if, in the end, there is a migration with technology, less in flower to other deliverables, I think we could play our part. From a Texas perspective, if Texas -- yeah, there's a lot of bills out there. We don't know, unfortunately, Texas meets every two years. So, we have this one window between January and May, whether it's a medicinal play there, I think first rather than RAC or nothing happens, and it's two years out.

Once we launch in Texas, we will be sort of first in when assets ready to go. We already have our conversion plans. We're ready to go in Texas. And that's the size same population nearly as Canada and the way Texas is going to probably be very close the next few years.

So that in itself is like the Republic of Texas or a country, but that doesn't mean we won't work nationally. And we're prepared to look at, if we have to do acquisitions or strategic partnerships and other locations where we can bring our strengths to the table. I think there's a lot of opportunity there. We're pretty well-known.

As you know, Village Farms is, in principle, a U.S. company. That's where we are. So, it's like coming home, and we're excited about on the array of possibilities for us." (https://www.fool.com/earnings/call-transcripts/2020/11/14/village-farms-international-inc-vff-q3-2020-earnin/)
Institutional Ownership18.53%
Income statement + blance sheet https://www.barrons.com/quote/stock/us/xnas/vff/financials
Price target Low 10.00, median 13.15, High 26.59 (from Barron n MarketWatch)

Disclaimer I've entered in it with an average buying price of 6.19US n I will be buying more.
submitted by ViewComprehensive334 to options

FO76 Needs A New Server Wide Event


So I propose we Bring Caravans to the Wasteland!

1: Improve Workshops
  • Buff/Restore Extractors to pre-nerf capability...(store up to 20 extracted mats; applicable extractors always provide scrap, not ore)
  • Allow players to Blueprint workshop builds with a simple “Apply Saved Build or Build New” option upon claiming a workshop
  • Allow players to claim a workshop in the name of a particular faction and reward rep when the workshop is successfully defended
2: Caravans
  • Much like in Fo4, Caravan’s will have trade-routes that go from workshop to workshop...completing the route will mean the Caravan was successful
  • Each Caravan will involve any two opposing factions...the faction leading the caravan will be hindered en-route by the opposite faction
  • A Faction Caravan succeeds when it completes the route and raises its flag at each workshop along the way...a Faction Caravan fails if all its NPCs are killed (Caravan Master, Caravan Henchmen and Brahmin) and/or if it fails to raise its flag at any workshop along the route
3: Details
  • A special shout-out to user fightingnetentropy for the suggestions they made on this post: https://www.reddit.com/fo76/comments/jvm23p/pretty_sure_it_wont_unbalance_the_game_if_beth/?utm_source=share&utm_medium=ios_app&utm_name=iossmf ...they were very good improvements that really should be incorporated w/ or w/o the inclusion of a Caravan Event system...as you can see I listed them above
  • It will be necessary to have “No-build-corridors” leading into and out of workshops so the Caravan can progress
  • When Caravan Events are triggered at each workshop it will create a public event, each player who joins the event will be given the option of which Faction they choose to support and a warning that they are agreeing to open PvP while they’re participating (if the PvP option is enabled at the instigation of the Caravan)
  • Individual Caravan Workshop Events will function in much the same way “Capture the Flag” elements work, the details of which I assume are familiar to most everyone
  • Caravan NPCs will return to full health each time a workshop is captured
  • Opposition NPCs will function much the way hoard events function and will spawn at workshops...as long as the “Alpha or Leader” is alive more Opposing NPCs will spawn to replace their fallen comrades
  • NPCs will gain a % negitive incoming dmg buff relative to how many players are supporting the opposite faction
Those who’ve endured my infrequent pontifications will recognize this post as a simplified section of a post I made about many different ideas, pre-Wastelanders release.
As envisioned this proposed Caravan System will allow players the license to dip in and out as they wish, PvP will be enabled or disabled as an option when the Caravan is instigated by a player so it doesn’t have to be an integral part of the Caravan’s function.
The point is to have both individual events and one long event that encourage a lot of public participation, but is equally possible to be soloed if only one player is involved.
Rewards including faction rep and bullion are a must...wouldn’t it be nice to have a way to progress rep other than repeatable dailies?
If you’d like to see the original post this one was based on you can find it here:
Looking forward to hearing the ideas of other users on this sub!
submitted by Yabvone to fo76

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