One of the most dynamic, albeit fluctuating, markets this year has been marijuana. If you are looking to invest in the rapidly changing cannabis industry, it might be time to look past the big players and consider some of the less well-known names in the business. Village Farms International Inc. (TSX:VFF)(NASDAQ:VFF) is a small but strong contender in the weed market that warrants a closer look.
Village Farms operates agricultural greenhouses. Founded in 1989, with facilities and experience for greenhouse growing, the company joined the marijuana market a year before its legalization. The company entered into a joint venture with Emerald Health Therapeutics, a medical marijuana giant.
The joint venture is called Pure Sunfarms, and it was Village Farm’s entryway into the weed market. The venture’s most important decision was to convert Delta-3, Village Farm’s largest greenhouse, into a marijuana growing facility.
The company’s growth capability can be expanded even further by turning their Delta-2 facility, which is just beside Delta-3, into a marijuana growing facility as well. It would mean a growth capability to rival the largest producers in the country.
There are more than a few reasons to consider investing in this small market-cap company, including international presence and growth potential.
Between industry giants like Aurora and companies with a primarily local focus, the Canadian market is thoroughly covered. Investors like you might want to take a look at companies that have facilities and focus outside the country.
The core focus of Village Farms has been the production and distribution of greenhouse-grown vegetables in North America. With greenhouse facilities in British Columbia and Texas, covering over 9 million square feet, and co-owned facilities in Mexico, the company is relatively international.
The Texas greenhouse land, of over 5.7 million square feet, is partially converted to produce hemp, following its legalization in the state. This diversification allows Village Farms to enter the local and international hemp and CBD market.
Village Farms is a stable company. As one of the largest greenhouse growers, Village Farms has weathered many market changes and ups and downs. The company’s careful entrance into the marijuana market, and its calculated future planning seem like good growth indicators.
The stability of the company is apparent in how it has weathered this tough year. Where many big names faltered, Village Farms saw three consecutive quarters of profit.
With the company partnering with outdoor hemp cultivators like Arkansas Valley Hemp, and plans for CBD production starting early next year, Village Farms’ growth potential looks great. This small market-cap company might be making big waves in the marijuana industry.
What this means for investors is a reminder to try to look at the bigger picture. The current market value of Village Farms is $14, but it may not stay that way for long. With the new ventures in place, and old stable production of the company holding steady, Village Farms may have the potential to make you rich.
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Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns shares of Village Farms International, Inc.