Village Farms Secures Growth Capital in Strategic Finance Deal

VANCOUVER, British Columbia – February 23, 2026 – In a move that underscores its robust financial health and ambitious growth plans, Village Farms International has successfully amended and extended its Canadian cannabis credit facility, securing an additional CAD $15 million in low-cost capital and pushing its debt maturity out to February 2029.

The deal, announced today, provides the vertically integrated agriculture and cannabis firm with enhanced financial flexibility at a time when access to capital remains a significant challenge for many in the cannabis sector. The incremental financing, structured as a delayed draw term loan, comes from existing lenders at a variable interest rate currently below 6.0%. The company drew an initial CAD $5 million on February 20, 2026.

“Today’s announcement demonstrates the strong credit profile of Village Farms established through record financial performance and continued leadership in global cannabis markets,” stated Michael DeGiglio, Chief Executive Officer of Village Farms, in the company's press release. He highlighted the company's strong net cash position and described the financing as a “responsible use of our balance sheet to enhance existing operating capabilities while preserving significant optionality for additional accretive organic and acquisitive growth opportunities.”

A Vote of Confidence in a Volatile Sector

The terms of the credit facility are particularly noteworthy. Securing debt with an interest rate below 6.0% is a significant achievement within the cannabis industry, where regulatory uncertainty and federal prohibition in the United States often lead to much higher borrowing costs. This favorable financing signals strong lender confidence, built on a foundation of consistent operational success and financial discipline.

Village Farms' claim of “record financial performance” is well-substantiated by its recent earnings. The company posted a record consolidated adjusted EBITDA of $20.2 million on $66.7 million in net sales for the third quarter of 2025, a stark contrast to the net loss reported in the prior year. Crucially, the company maintains what it calls a “very strong net cash position,” reporting approximately $88 million in cash at the end of Q3 2025, a figure that exceeds its total debt. This financial fortitude makes Village Farms an outlier in the industry and a far more attractive partner for lenders.

Fortifying Canadian Dominance and Operational Excellence

The new capital injection is expected to further solidify the company's leading position in the Canadian market. Its wholly-owned subsidiary, Pure Sunfarms, has become a dominant force, securing the number one market share in the dried flower category and the number three position overall in Canada during 2024.

This market success is deeply rooted in Village Farms' decades of experience in Controlled Environment Agriculture (CEA). Before entering the cannabis market, the company was a long-tenured supplier of fresh produce to major retailers. It has successfully translated this agricultural expertise to cannabis cultivation, establishing one of the world's single largest cannabis operations with 2.2 million square feet of greenhouse production. This scale, combined with its CEA know-how, allows Pure Sunfarms to be a low-cost producer without sacrificing quality, a key factor in its record-setting 56% gross margin in its Canadian cannabis segment during the third quarter of 2025. The additional financing provides the means to continue optimizing these operations and potentially expand its 2.6 million square feet of greenhouse capacity reserved for future growth.

Fueling an Ambitious Global Expansion

While its Canadian operations provide a stable and profitable foundation, Village Farms has set its sights on nascent international markets for future growth. The newly secured funds are poised to fuel this global expansion strategy, which is already showing remarkable momentum.

The company's international medical export business, shipping EU GMP-certified cannabis from Canada, is rapidly accelerating. Sales to markets including Germany, the United Kingdom, Israel, and Australia surged by an astonishing 758% in the third quarter of 2025, with the company forecasting that international sales could triple for the full year 2025.

Perhaps the most significant international venture is in the Netherlands. Village Farms' subsidiary, Leli Holland, is one of only ten companies licensed to participate in the Dutch “Coffee Shop Experiment,” a government-controlled program for legal recreational cannabis production and distribution. After commencing cultivation in Q3 2024, its Drachten facility is now at full capacity. A second, much larger facility in Groningen is slated to become operational in the first quarter of 2026, a development expected to quintuple the company's Dutch production capacity. This strategic positioning in the first European country to legalize recreational cannabis could become a major contributor to profitability, given the more favorable pricing and tax environment compared to Canada.

Patiently Positioning for the US Prize

The ultimate, and largest, prize remains the United States THC market. Village Farms is playing a patient but deliberate game, building a strategic beachhead while awaiting federal regulatory changes. The company has explicitly stated its plans to enter the U.S. market are “subject to compliance with all applicable US federal and state laws and stock exchange rules.”

In the meantime, it has assembled a formidable set of assets. Its U.S. portfolio includes Balanced Health Botanicals, a leading CBD e-commerce platform featuring the top-five brand CBDistillery. More importantly, it possesses a massive footprint of high-tech CEA facilities in Texas, totaling 5.5 million square feet—the largest cultivation asset base of any major North American cannabis operator. These greenhouses, currently used for produce, are primed for conversion to THC cannabis cultivation once legally permissible.

The CAD $15 million in flexible, low-cost capital reinforces this strategy. It provides Village Farms with the financial runway to maintain its strategic patience, continue growing its international and Canadian businesses, and be ready to act decisively on U.S. opportunities—whether through organic conversion of its Texas assets or strategic acquisitions—the moment the federal landscape shifts.