In between the two ends of the spectrum sits a group of cannabis companies that aren’t generally noticed by the market and pull in quarterly revenue below $25 million.
Touted as the only publicly traded greenhouse produce company in Canada, Village Farms is primarily known for operating agricultural greenhouse facilities that produce, market, and sell tomatoes, peppers, and cucumbers — not exactly your run-of-the-mill cannabis company.
It also owns two joint ventures targeting multi-state outdoor hemp cultivation and cannabidiol extraction, recently bolstered by its acquisition of Balanced Health Botanicals in August.
Not only does Village Farms sit at the top of the junior category for quarterly revenue, but the company also boasts the largest increase in quarter-over-quarter sequential revenue growth.
The company also reported a 192% sequential increase in earnings before interest, taxes, depreciation, and amortization — the eleventh consecutive quarter of positive adjusted EBITDA — for the Pure Sunfarms brand.
That brought in a company record $7.5 million for the quarter, driven by the dried flower market, which makes up 70% of the brand’s total retail sales.
As of now, the regulatory changes necessary to allow the company to take advantage of this market continue to be debated within the Senate and House, though hints of blue skies for federal legalization are shining through as of Oct.
In 2020 Village Farms made good progress in preparing for future growth by nearly doubling its cash, going from $11 million in 2019 to $21 million in 2020.
But when compared to the likes of Curaleaf, Trulieve, and the other top names, it pales in comparison.
In anticipation of legalization, the company is looking toward a future of legalized hemp cultivation in Texas from which it can produce new revenue using its 5.7 million-square-foot facility, currently used for growing and distributing fresh produce.
Dried flower still accounts for over 70% of consumer spending on cannabis in Canada, though its dominance is dropping from a level closer to 80% as more products are introduced through the lines of edibles, vapes, and extracts.
According to cannabis analytics firm HiFyre, Pure Sunfarms leads the pack in the market share of the Canadian flower market.