Village Farms International, a prominent greenhouse vegetable producer from Canada, is entering the Colorado hemp market with a $5 million joint venture to start growing CBD-rich hemp in the Centennial State.
To accomplish the move, Village Farms entered a joint venture with Arkansas Valley Hemp in southern Colorado.
Under the agreement, Vancouver, British Columbia-based Village Farms will own 60% of the joint venture, named Arkansas Valley Green and Gold Hemp, while Arkansas Valley Hemp will own 35%.
The remaining 5% will be owned by Village Fields Hemp, another Village Farms joint venture focused on hemp production in North Carolina, South Carolina and Virginia, according to a company announcement.
Village Farms will give $5 million to Arkansas Valley Hemp for startup costs and working capital.
Arkansas Valley Green and Gold will grow 120 acres of hemp outdoors in 2019, increasing Village Farms’ U.S. hemp acreage to more than 920 acres.
In 2020, Arkansas Valley Green and Gold plans to increase its outdoor hemp cultivation to 500 acres.
Village Farms stocks trade as VFF on the Toronto Stock Exchange and the Nasdaq.