Village Farms International: A Green Light for Growth in Cannabis and Beyond

Village Farms International (NASDAQ: VFF) has just cleared a major hurdle—regaining Nasdaq compliance—and is now primed to capitalize on its bold pivot to the cannabis industry. This is a game-changer for a company that's been under the radar but is now positioning itself as a global leader in high-margin, regulated markets. Let me break down why this is a buy now—or at least a stock to watch closely.

Nasdaq Compliance: A Lifeline and a Signal of Strength

VFF's stock had flirted with delisting fears after trading below $1 for months. But by June 9, 2025, the company regained compliance, ensuring its Nasdaq listing—and with it, access to liquidity and investor confidence. This isn't just a technical win; it's a strategic one. A company that can navigate regulatory hurdles isn't just surviving—it's signaling it's here to stay.

Look at the chart: VFF has been volatile, but the compliance win has sparked a rebound. This is a critical base for further gains as the company executes its cannabis expansion.

The Strategic Shift: Divesting for Focus, Not Retreat

Village Farms' decision to privatize its fresh produce business isn't about weakness—it's about focus. By spinning off its traditional agricultural operations into Vanguard Food LP, the company has freed up $30 million in net cash. That's not pocket change—this is war chest money to fund its cannabis ambitions.

The produce division was a drag on margins, especially after Texas dust storms caused a $4.3 million accounting hit. But now, with 37.9% equity in Vanguard, VFF retains upside while redirecting resources to higher-growth cannabis opportunities. This isn't just a pivot—it's a reinvention.

Margin Magic: Where the Money Is

The real gold mine here is margin improvement. In Canada, Pure Sunfarms—the company's 2.2M-sq-ft cannabis powerhouse—saw net income jump 258% year-over-year to $4.3 million (CAD) in Q1 2025. That's not a typo. Meanwhile, international medical cannabis exports soared 285% as Village Farms expanded into Germany, the UK, and New Zealand.

These numbers don't lie. By focusing on high-margin exports and cutting costs through vertical integration, Village Farms is proving it can turn the cannabis industry's “high-risk” narrative into “high-reward.”

Global Expansion: From Greenhouses to Global Dominance

The company isn't just playing in Canada. Here's the global playbook:
1. Europe: Leli Holland's Phase I recreational cannabis sales are off to a strong start, with Phase II construction in Groningen (set to finish by Q1 2026) boosting capacity fivefold. This is a gold mine in the Netherlands' $2 billion recreational market.
2. U.S.: A Texas medicinal marijuana license could unlock a $1.3 billion market by 2026. With 2.2M sq ft of greenhouse space and 950 acres for expansion, VFF is ready to hit the ground running if approved.
3. Sustainability: Its renewable energy arm, Village Farms Clean Energy, is reducing 475,000 metric tons of CO2 annually—a green halo that boosts ESG credibility and opens new revenue streams.

This isn't just diversification—it's a dominance strategy in markets where cannabis is becoming mainstream.

Risks? Yes. But the Bull Case Outweighs Them

Critics will cite risks: regulatory delays in Texas, competition in Canada, and the EU's fragmented cannabis laws. Plus, TipRanks' Spark AI gave it a “Neutral” rating, citing mixed financials. But here's why I'm still bullish:
- Analyst Buy Ratings: A “Buy” with a $1.75 price target (vs. current ~$1.20) suggests 46% upside.
- Balance Sheet Health: Refinancing Canadian debt to sub-8% interest and extending maturity to 2028 removes near-term pressure.
- Execution Track Record: VFF has pulled off complex deals before—like the Vanguard spinoff—and emerged stronger.

The Bottom Line: A Buy for the Brave, a Hold for the Cautious

At a $133.7 million market cap, VFF is tiny but mighty. If you're looking for a high-risk, high-reward play in cannabis, this is it. The Nasdaq compliance win, margin explosions, and global expansion all point to a stock that could triple in value if just one of its markets clicks (Texas, Europe, or U.S. THC).

But tread carefully: This is not for the faint of heart. Wait for dips below $1.00—then stack the shares. If you've got a 3–5 year horizon, this is a buy. If you're a “set it and forget it” investor, maybe hold off. Either way, keep an eye on that Texas license decision—it could be the spark to ignite this stock.

Action Plan: Buy VFF at under $1.20 with a stop below $1.00. Set a target of $1.75 and watch for catalysts like Texas approval or EU export milestones. This is a stock that's been given a second chance—now it's time to let it run.