VFF Ready To Run Up Again

Emerald Health exercises an option to almost double production

Last week, British Columbia-based Emerald Health Therapeutics (NASDAQOTH:EMHTF)announced that it would be exercising one of its lease options regarding its Pure Sunfarms joint venture with Village Farms International (NASDAQ:VFF). In doing so, it nearly doubled its peak production potential.

Back in 2017, Emerald Health and Village Farms created the 50-50 Pure Sunfarms joint venture with the idea of retrofitting Village Farms' existing vegetable-growing greenhouses to cannabis production. The initial outlay involved 1.1 million square feet of vegetable-growing space that, when complete, would house 1.03 million square feet of cultivation area and yield at least 75,000 kilos per year. Thus far, approximately 825,000 square feet of cultivation space has been licensed by Health Canada at the Delta 3 facility, with the remainder expected to be licensed very soon.

However, the joint venture featured an option for Emerald Health to acquire up to 3.7 million square feet of additional growing space from Village Farms to be used for cannabis production. On Monday, April 1, Emerald Health exercised its option for a second 1.1-million-square-foot facility (to be known as Delta 2), and announced its intent to purchase 25% of the aggregate production from Delta 2 and Delta 3 in 2020, 2021, and 2022. Emerald Health is expected to commit roughly 25 million Canadian dollars to help construct Delta 2, with positive operating cash flow from the joint venture funding the remaining CA$35 million (the Delta 3 facility cost CA$60 million).

It's worth noting that the Delta 3 greenhouse was built with an automated nursery -- and since it's adjacent to the Delta 2 facility, this nursery will allow the Delta 2 facility to utilize more space for cultivation than Delta 3.

More importantly, it doubles the peak annual output of Pure Sunfarms to at least 150,000 kilos. Inclusive of the company's Verdelite facility in Quebec, this move nearly doubles Emerald Health's capacity from 47,000 kilos to 84,500 kilos. Of course, with the company's Metro Vancouver space and the potential for acquiring up to 2.6 million square feet in additional grow space from Village Farms, peak yearly output should exceed 100,000 kilos.

https://www.fool.com/investing/2019/04/08/this-marijuana-stock-nearly-doubled-its-peak-produ.aspx

CIBC Accumulating 30 days of VFF $56,329,449 NET INVESTED 19.87 AVG

House Positions for C:VFF from 20190311 to 20190408

House	Bought	$Val	Ave	Sold	$Val	Ave	Net	$Net
79 CIBC	29,229,740	579,707,914	19.833	26,339,476	523,378,465	19.87	2,890,264	-56,329,449
87 Beacon	152,993	3,184,318	20.813	10,000	203,991	20.399	142,993	-2,980,327
91 Jones	121,400	2,619,213	21.575	5,000	96,452	19.29	116,400	-2,522,761
9 BMO Nesbitt	3,719,876	73,572,644	19.778	3,611,592	70,867,500	19.622	108,284	-2,705,144
7 TD Sec	15,984,262	316,965,638	19.83	15,887,714	312,459,849	19.667	96,548	-4,505,789
19 Desjardins	834,699	16,645,554	19.942	759,929	15,069,795	19.831	74,770	-1,575,759
5 Penson	1,895,297	37,418,477	19.743	1,830,920	36,077,747	19.705	64,377	-1,340,730
85 Scotia	3,985,586	78,323,073	19.652	3,935,515	77,495,553	19.691	50,071	-827,520
80 National Bank	2,873,423	56,133,461	19.535	2,827,096	55,334,146	19.573	46,327	-799,315
88 Credential	840,521	16,420,835	19.536	806,082	15,625,316	19.384	34,439	-795,519
124 Questrade	2,863,837	56,547,402	19.745	2,847,049	56,177,620	19.732	16,788	-369,782
70 Manulife	16,300	338,717	20.78	1,900	41,000	21.579	14,400	-297,717
99 Jitney	1,037,600	20,079,544	19.352	1,028,000	19,949,156	19.406	9,600	-130,388
90 Barclays	18,050	367,920	20.383	9,800	214,032	21.84	8,250	-153,888
72 Credit Suisse	27,229	553,440	20.325	19,121	427,970	22.382	8,108	-125,470
28 BBS	134,333	2,657,531	19.783	126,260	2,471,533	19.575	8,073	-185,998
143 Pershing	192,556	3,773,912	19.599	186,962	3,655,409	19.552	5,594	-118,503
59 PI	5,166	95,771	18.539	0			5,166	-95,771
62 Haywood	42,900	850,492	19.825	39,450	781,233	19.803	3,450	-69,259
48 Laurentian	7,299	142,133	19.473	4,354	89,117	20.468	2,945	-53,016
15 UBS	8,273	175,694	21.237	7,680	142,328	18.532	593	-33,366
17 Integral	500	11,695	23.39	0			500	-11,695
84 Ind Trading	1,400	25,570	18.264	1,000	18,030	18.03	400	-7,540
3 AltaCorp	250	5,052	20.208	250	5,250	21.00	0	198
35 Friedberg	1,385	27,987	20.207	1,414	28,660	20.269	-29	673
83 Mackie	1,400	27,552	19.68	2,300	42,251	18.37	-900	14,699
94 Hampton	1,000	22,400	22.40	2,500	46,375	18.55	-1,500	23,975
76 Industrial Alliance	4,917	99,324	20.20	6,670	127,938	19.181	-1,753	28,614
25 Odlum	330	6,773	20.524	4,530	92,329	20.382	-4,200	85,556
97 M Partners	0			4,400	90,409	20.548	-4,400	90,409
68 Leede	22,899	466,250	20.361	29,249	592,410	20.254	-6,350	126,160
56 Edward Jones	3,260	62,599	19.202	12,352	226,416	18.33	-9,092	163,817
22 Fidelity	4,676	89,707	19.185	20,550	387,742	18.868	-15,874	298,035
57 Interactive	108,517	2,180,524	20.094	127,221	2,546,198	20.014	-18,704	365,674
36 Latimer	83,405	1,657,901	19.878	108,731	2,165,769	19.919	-25,326	507,868
18 Echelon	47,900	934,221	19.504	77,399	1,566,326	20.237	-29,499	632,105
222 JP Morgan	0			35,000	787,893	22.511	-35,000	787,893
89 Raymond James	27,150	512,244	18.867	73,435	1,470,079	20.019	-46,285	957,835
14 ITG	36,907	640,378	17.351	92,177	1,736,741	18.841	-55,270	1,096,363
39 Merrill Lynch	2,921,448	57,776,644	19.777	3,005,765	59,480,174	19.789	-84,317	1,703,530
74 GMP	44,450	907,274	20.411	143,150	2,817,561	19.683	-98,700	1,910,287
33 Canaccord	296,905	6,099,650	20.544	471,199	9,366,885	19.879	-174,294	3,267,235
65 Goldman	102,306	1,983,795	19.391	368,860	6,892,997	18.687	-266,554	4,909,202
53 Morgan Stanley	1,096,636	21,247,048	19.375	1,479,554	29,588,449	19.998	-382,918	8,341,401
2 RBC	7,340,535	145,059,556	19.761	7,762,904	153,715,545	19.801	-422,369	8,655,989
13 Instinet	4,401,832	87,175,411	19.804	4,884,769	97,329,405	19.925	-482,937	10,153,994
1 Anonymous.	21,459,655	425,407,839	19.824	23,001,724	457,321,033	19.882	-1,542,069	31,913,194
TOTAL	102,001,003	2,019,001,077	19.794	102,001,003	2,019,001,077	19.794	0	0