Quebec company ROSE LifeScience announces majority acquisition by vertically integrated greenhouse, Village Farms International

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The 70% acquisition ensures a substantial presence in one of the from Canada the largest cannabis markets, an experienced Quebec leadership in the cannabis field and a production plant in Quebec

HUNTINGDON, QC, November 15, 2021 / CNW Telbec / – Quebec-based private company ROSE LifeScience Inc. (“ROSE”), a leading producer, supplier and marketer of vertically integrated branded cannabis in the province of Quebec, has announced that 70% of its ownership has been acquired by Village Farms International, Inc. (“Village Farms” or the “Company”) (NASDAQ: VFF) (TSX: VFF), effective today. (“Closing Date”).

The transaction is valued up to 46.7 million Canadian dollars. ROSE becomes the Quebec operational unit of the Canadian cannabis sector of Village Farms, the head office of ROSE and the existing team residing in Quebec.

ROSE is one of the leading experts in the marketing of cannabis-based products in the province of Quebec, acting as the exclusive direct-to-retail sales, marketing and distribution entity for Entourage Health, Sundial, Tilray and The Flowr Corporation and 10 micro and crafts from Quebec. producers throughout Quebec. ROSE also distributes its own brand of high quality cannabis products at retail in Quebec. Tam Tam is grown and processed in ROSE’s controlled environment agriculture (AEC) plant, located in Quebec and approved by Health Canada, at 55,000 square feet. Huntingdon, which was commissioned in 2020. ROSE also provides a marketing platform on the Quebec market for several Quebec micro-producers under its DLYS brand.

Highlights of the acquisition

  • Adds a substantial presence in the province of Quebec as a supplier, producer and expert in the marketing of cannabis in the province of Quebec, which represents approximately 15%1 of total cannabis retail sales in Canada at the current annualized rate of over C $ 627 million1, the vast majority of which are dried flowers and pre-rolled products;
  • Adds experienced Quebec industry leaders who will join the Village Farms / Pure Sunfarms team, strengthening existing relationships in the Quebec cannabis market and leveraging in-depth and specialized experience in consumer packaged products and regulated industries; and,
  • Adds a 55,000 square foot controlled environment farming and processing (ACE) facility located in Quebec, which is included in the transaction.

ROSE management commentary
“We have long admired the success of Village Farms and Pure Sunfarms in the Canadian cannabis industry. We are proud to join them in accelerating our successes and seizing this opportunity to further develop the industry in our home province, Quebec, ”said Davide Zaffino, co-founder and president and CEO, ROSE. “We cherish our Quebec roots and believe deeply in the culture and values ​​of our province. As always, we remain committed to ensuring that Quebec benefits from the responsible production, sale and consumption of cannabis. As a member of the exceptional family of cannabis companies within Village Fermes, we are even better positioned to continue to play this leading role in the Quebec landscape. “

Comments on the management of village farms
“The acquisition of ROSE – by far the most successful Quebec-based cannabis operator in our opinion – is a prudent and strategic way to enter and rapidly increase sales, in one of the from Canada the largest provincial cannabis markets, ”said Michael De Giglio, CEO, Village Farms. “ROSE adds an exceptional group of Quebec experts to our Canadian cannabis operations. The team has a proven track record of success and shares our belief in the importance of excellence in culture, as well as the benefit of innovation and continuous improvement. We look forward to building on ROSE’s solid foundation in the Quebec market, with a long-term commitment to the company’s Quebec heritage. “

“ROSE immediately extends our reach to over 90%1 of all cannabis retail sales in Canada and represents a major step forward in Pure Sunfarms’ strategy to become the leading national cannabis supplier in Canada, with a market share of at least 20% in the dried flower category, ”said Mandesh Dosanjh, President and CEO, Pure Sunfarms. “ROSE is highly respected in the Quebec cannabis industry, with a reputation for leadership and success in branding. that we have come to know and respect well. We look forward to seizing the new opportunities, both short and long term, created by the addition of ROSE as a Quebec-based cannabis business unit. “

Remarks
1. Statcan. Based on data at August 31, 2021.

About ROSE LifeScience Inc.
As a private Quebec company, ROSE LifeScience is committed to ensuring that Quebec benefits from the responsible production, sale and consumption of cannabis. From cannabis cultivation to marketing, marketing and logistics, the Huntingdon, QC the company plays a key role in the provincial market. In addition to its own products and know-how, ROSE offers specialized industrial services to selected producers in order to promote a diversified offer on the Quebec market. For more information, visit www.roselifesience.ca.

About Village Farms International, Inc.
Village Farms draws on decades of experience as a large-scale, environment-controlled, vertically integrated agriculture-based supplier for high-value, high-growth, consumer-packed, plant-based consumer product opportunities. , with a solid foundation as a leading supplier of fresh produce to grocery and large format retailers across the United States and Canada, and new high-growth opportunities in the cannabis and CBD categories in North America and selected markets internationally.

In Canada, the Company’s wholly owned Canadian subsidiary, Pure Sunfarms, is one of the world’s largest cannabis operations, the cheapest greenhouse producer and one of the from Canada top selling brands. The Company also owns 70% of the Quebec company ROSE LifeScience, one of the main third-party experts in the marketing of cannabis-based products in the province of Quebec. In the United States, 100% -owned Balanced Health Botanicals is one of the country’s leading CBD brands and e-commerce platforms. Subject to compliance with all applicable US federal and state laws and stock market rules, Village Farms plans to enter the US high THC cannabis market through several strategies, leveraging one of the largest farms greenhouse (over 5.5 million square feet in West Texas), as well as the operational and product expertise gained through the success of Pure Sunfarms in the cannabis field Canada. Internationally, Village Farms targets selected, emerging and legal cannabis and CBD opportunities with significant medium to long term potential, initially focusing on the Asia Pacific region and Europe.

SOURCE ROSE Life Sciences

For further information: Contact details: Valentine Vaillant, VP, Marketing and Sales, ROSE LifeScience, (438) 989-6654, [email protected]; Lawrence Chamberlain, Investor Relations, LodeRock Advisors, (416) 519-4196, [email protected]


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