A major greenhouse grower based in Canada has inked an agreement to buy part of a cannabinoid seller in Australia to support its ambitions of entering the CBD market in the Asia-Pacific region.
Village Farms International, a grower with greenhouses and partner greenhouses in Canada, the U.S. and Mexico and a large cannabis operation in British Columbia, said Tuesday it had reached a binding agreement to acquire a 6.6%-share of Altum International, an Australian B2B and B2C supplier of cannabinoid products.
Village Farms has the option to increase its ownership in Altum on similar terms. The full terms of the acquisition were not disclosed.
The company has launched CBD products under its Felix and Co. brand in Hong Kong, and it is also supplying craft brewers for CBD-infused beer and coffee chains and juice bars for beverages and edibles. The company says it also is in discussions on supply agreements for products that include pet food, cosmetics and spa products for hotels.
Altum is also pursuing high-THC medical cannabis opportunities in Australia and New Zealand and intends to pursue recreational cannabis opportunities in each of those countries, should legalization occur, the statement read.
“On the heels of our recent investment in the Netherlands, our partnership with Altum represents another meaningful step to leverage our three decades of experience in vertically integrated, intensive agriculture, as well as our cannabis success in Canada, for international CBD and cannabis opportunities,” Village Farms CEO Michael DeGiglio said in the statement.
Village Farms trades on the Nasdaq and Toronto Stock Exchange (TSX) under the symbol VFF.