Village Farms International’s Pure Sunfarms gains research license and makes inroads in Asia
Village Farms is on the Hedgeye Cannabis LONG Bias list.
The Canadian greenhouse produce company, now cannabis licensed producer through its acquisition of Pure Sunfarms, announced two positive business developments related to Pure Sunfarms.
Health Canada has granted it's subsidiary a Cannabis Research License, allowing the company to conduct human administration trials for sensory evaluation of cannabis. The license will provide Pure Sunfarms with significant new opportunities to formulate and refine its products, potentially opening the door for new product innovations for what is already one of Canada’s best-selling brands.
In its international debut, 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 CBD awareness.
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 café 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.
Jushi expands Pennsylvania cultivation facility with Innovative Industrial Properties (JUSHF, IIPR)
IIPR is a Hedgeye Cannabis Best Idea LONG.
Jushi Holdings. Inc., a vertically integrated, multi-state cannabis operator, announced plans to nearly double the square footage of its subsidiary’s grower-processor facility in Scranton, Pennsylvania, from approximately 90,000 sq. ft. to more than 160,000 sq. ft. in a phased expansion. The majority of the approximate 70,000 sq. ft. expansion project will be focused on increasing the facility’s canopy space, which upon completion will nearly triple to approximately 98,000 sq. ft. The first phase of the expansion is expected to come online in mid-2021, and the final phase will be completed by the second quarter of 2022. In total, Jushi expects to invest approximately $50 million on the project. Jushi operates eight retail dispensaries in Pennsylvania under its Beyond/Hello brand.
IIPR will partially finance the expansion project via an upsize to the existing lease agreement between the parties. Pennsylvania’s medical marijuana market is rapidly growing and has strong potential to go recreational in 2021, pending certain Republican lawmakers changing sentiment. IIPR stands to gain from this market growth potential as a preferred capital provider under federal prohibition. Aside from Jushi, IIPR has agreements in Pennsylvania with public and private companies like Curaleaf (CURLF), Green Thumb Industries (GTBIF), Green Leaf Medical, Holistic Industries, PharmaCann, and Maitri Genetics.
In September, we presented our long thesis on IIPR. It stands in a unique position at the intersection of the cannabis industry and the REIT space in a rapidly changing legislative landscape, earning outsized returns in the current environment with few competitors.
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Virginia Governor reaffirms adult-use legalization in 2021
Virginia Governor Ralph Northam (D) reaffirmed the state pursuing legalization next year and shared his hopes for Virginia to guide Southern states to follow. In comments to WAMU radio’s The Kojo Nnamdi Show, Northam said, “There are 15 or so other states that have moved toward legalizing marijuana. Virginia will be the first in the South, but we tend to be leaders, and now that’s what we’re going to do this year. And we’re going to do it the right way.”
Northam noted that he has yet to decide on whether residents will be allowed to cultivate the plant at their own homes. He also suggested that social equity provisions would be part of the program’s rollout.
