Village Farms Delta 2 Greenhouse Expansion Progressing Well

Village Farms announced several operational updates regarding the ongoing capacity expansion project in its 1.1M square foot Delta 2 greenhouse in British Columbia. The D-2 expansion commenced last November to convert the remaining 550,000 square feet of the greenhouse to cannabis production in a series of project phases scheduled through the first half of next year. The company recently completed a successful first harvest in the first half of the expansion and announced it has commenced cultivation in the second half with an expected harvest date in late August. The company has also accelerated its timeline of planned technology upgrades in response to increasing demand, and will complete lighting and other technological upgrades in the D-2 expansion during the fourth quarter. President and CEO Michael DeGiglio commented, "Following the successful harvest we completed in the first half of the Delta 2 expansion last week, we are pleased to announce that we've commenced cultivation in the second half and are accelerating planned technology upgrades in response to increasing demand. These upgrades were previously expected to be installed in 2027 and importantly will not result in incremental capital expenditures as the equipment was already purchased earlier this year." Mr. DeGiglio continued, "We expect the completion of the Delta 2 expansion to result in greater economies of scale as we ramp to full production, and the acceleration of technology upgrades will enable us to meet increasing demand for higher quality flower from our domestic and international partners. We expect the Delta 2 expansion will ramp to its full production capacity of 40 metric tonnes of dried, trimmed flower in the third quarter of next year, positioning us well to drive continued profitable sales growth next year and through calendar year 2028."