[PRESS RELEASE] – VANCOUVER, British Columbia, Aug. 4, 2025 – Village Farms International Inc. announced that its Board of Directors has unanimously approved an investment to expand the company’s cannabis cultivation capacity by converting the remaining 550,000 square feet 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 CEO Michael A. DeGiglio said, “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 square feet of operational cannabis production, increasing production square footage by approximately 33% 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 square feet 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.
“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,” DeGiglio said. “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.”
