DutchCanGrow provides update on production licensing lottery
Village Farms International does not receive a cannabis production license in the Netherlands
VANCOUVER — Village Farms International, Inc. announced on Dec. 4 that DutchCanGrow Inc., a Netherlands-based cannabis enterprise in which Village Farms holds just under a 16% ownership stake, as the outcome of a lottery process, did not receive one of the ten cannabis production licenses under the Dutch government’s 10-city Experiment to Investigate Closed Cannabis Supply Chains.
Based on the results of the random draw, DCG has been placed in the eighth position on a waiting list for a License. The applicants drawn in the one to ten positions to potentially receive of one the ten available licenses will be subject to a thorough review of their business affairs and personnel under the Public Administration (Probity Screening) Act (known by its Dutch language acronym “BIBOB”), which is expected to be completed in eight to 12 weeks.
“We are extremely proud that DCG was one of only 40 applicants out of a total of nearly 150 to even be considered for a production license, and await the outcome of the rigorous and extensive review of the initial ten applicants drawn in the lottery,” said Michael DeGiglio, CEO, Village Farms International. “Village Farms undertook this process with the understanding that the Licenses would be awarded based on merit, not a random draw. We believe we would be a significant contributor to the success of the WECG, providing safe, premium-quality, legally-grown cannabis in the Netherlands.”
Village Farms is one of six equal shareholders in DCG owning just under 16% each, with a seventh shareholder owning 5%.