Village Farms International was not granted a conditional medical cannabis license in Texas as part of the Department of Public Safety’s Phase I award round announced on December 1 2025. The company’s application was evaluated but ultimately not selected, a decision that the firm says will not impact its financial performance or strategic outlook.
The denial comes as Village Farms continues to pursue cannabis cultivation in Texas, where it owns 2.2 million square feet of greenhouse capacity and 950 acres of farmland. These assets position the company as a strong contender for future licensing, and the denial does not diminish its long‑term plans to activate the infrastructure once a license is secured.
Financially, Village Farms reported Q3 2025 results that underscored its resilience. Consolidated net sales rose 21% year‑over‑year to $66.7 million, driven by robust performance in its Canadian cannabis segment, which recorded a 56% gross margin. Net income from continuing operations reached $10.8 million, reflecting disciplined cost management and a diversified revenue mix that cushions the impact of the Texas denial.
CEO Michael DeGiglio emphasized that the denial has “zero impact on our financial performance, outlook or strategy.” He reiterated the company’s commitment to the Texas market, noting that Village Farms will reapply in the Phase II round scheduled for April 2026 and that the existing assets will be leveraged once a license is granted.
The Texas medical cannabis program, expanded under House Bill 46, awarded nine conditional licenses in Phase I and three in Phase II. Village Farms’ denial reflects the highly competitive nature of the market, but the company’s substantial infrastructure and strong international operations suggest that the setback is a short‑term hurdle rather than a strategic setback.
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