Greenhouse grower Village Farms International Inc. (NASDAQ: VFF) (TSX: VFF) is set to buy 6.6% of Australia-based Altum International Pty Ltd.
According to the company's update, the Vancouver-based company carried out a binding agreement to acquire a stake of the CBD platform.
The deal is expected to close in the weeks to come. Per the agreement, Village Farms may opt to increase its ownership in Altum.
Michael DeGiglio, who helms Village Farms, said that teaming up with Altum is a "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."
DeGiglio emphasized that the Asia-Pacific market is a "sizeable but nascent opportunity," considering estimations are that the addressable cannabis market will reach US$10 billion in the following four years.
Altum International's CEO, Ean Alexander, said they are "thrilled" to partner with Village Farms, adding it is "a win-win outcome for both parties."
Starting in Hong Kong, Altum intends to pursue its business strategy within Greater China, Japan, South Korea, Thailand, Australia, and New Zealand.
In addition, it has introduced a broad range of its Felix and Co-branded CBD products.
The news comes on the heels of another Village Farms deal. The company recently purchased a stake in DutchCanGrow Inc., a company based in the Netherlands. DutchCanGrow expects to become one of the ten licensed cannabis growers within the country once it launches the first legal recreational cannabis market in Europe.
