Balanced Health Botanicals™ ("BHB" or "The Brand"), one of the largest CBD brands in the market, today announced it has been acquired by Village Farms International, Inc. ("Village Farms" or "The Company") (NASDAQ:VFF) (TSX:VFF), including its established e-commerce platform, CBDistillery™. The transaction is valued at US$75 million satisfied through US$30 million in cash and common shares of Village Farms' equal to US$45 million to the sellers of BHB.

Village Farms leverages decades of experience as a large-scale, Controlled Environment Agriculture-based, vertically integrated supplier for high-value, high-growth plant-based Consumer Packaged Goods opportunities, with a strong foundation as a leading fresh produce supplier to grocery and large-format retailers throughout the US and Canada, and new high-growth opportunities in the cannabis and CBD categories in North America and selected markets internationally.

"We are ecstatic to join forces with Village Farms, a leader in the global cannabis and CBD industries," said Chase Terwilliger, Chief Executive Officer of Balanced Health Botanicals. "Since 2016, our nimble team has worked tirelessly to create not only a leading brand of which we are extremely proud but also one that is truly making an impact in the lives of consumers by providing everyday premium products.  We've been able to achieve and maintain a top-five market share¹ in the CBD market, while generating positive cash flow. As part of the Village Farms organization, we will be able to take the next steps in our growth strategy, with the opportunity for prudent, return-focused investments, to further expand our market share and drive efficiencies, with a focus on continued profitability."

"Village Farms is a highly complementary match for Balanced Health Botanicals, with a strong alignment of vision and values, providing the opportunity for unparalleled collaboration, and a shared objective to be the leader in every market in which we participate.  We remain steadfast in our commitment to our retail partners and customers, and are confident this acquisition will further strengthen our ability to meet their needs."

The acquisition of BHB will provide Village Farms with immediate access to the US retail CBD market through The Brand's well-established, profitable business, with top brand awareness, an established E-commerce platform, established retail channels and a growing customer base. It will also add significant value to BHB's supply chain, including the potential to leverage Village Farms' long-standing relationships as a produce supplier to its grocery and large-format retailers in the US, as well as through further investment in BHB's brand and expansion of its leading e-commerce platform. The existing BHB leadership and operational teams will be absorbed into the Village Farms Family bringing their complementary capabilities and cannabis expertise to significantly strengthen Village Farms' ability to achieve their strategic objectives.

"Since US federal legalization in late 2018, hemp-derived CBD products, as well as other cannabidiol-based products, have been part of our comprehensive strategy focused on high-value, high-growth plant-based consumer packaged goods opportunities in cannabis," said Michael DeGiglio, CEO, Village Farms International.  "As a well-established, profitable leader in the US retail CBD market, Balanced Health Botanicals is the right opportunity, at the right time, to take our next major step forward in anticipation of regulatory clarity that will propel the growth of this nascent market. Its platform provides us with another potential pathway to participate in the US high-THC cannabis market, when permitted to do so, that could enable us to more rapidly access the market, in advance of our plans to convert our more than 5.5 million square feet of high-tech greenhouse facilities in West Texas – one of the most favourable environments for cannabis cultivation in the continental US – for large-scale, low-cost production of cannabis."

BHB develops and sells high-quality, CBD-based health and wellness products. With an overriding focus on quality and compliance, BHB has established a diverse portfolio of CBD and other cannabinoid products, including ingestible, edible and topical applications that are distributed via e-commerce and bricks and mortar retail channels. CBDistillery™, is a top -five US CBD brand¹ top-ranked web site within the CBD category, with more than 30,000 orders monthly and a significant repeat customer base. Through its long-term partnerships, BHB has control of the entire supply chain from seed-to-shelf, seamless sourcing, manufacturing, and sale of high-quality end products across a wide variety of forms and uses.

For more information on Balanced Health Botanicals and its family of brands, please visit: https://www.balancedhealthbotanicals.com/.

Advisors

Kronos Capital Partners Inc. acted as the financial advisors to Balanced Health Botanicals. Greenberg Traurig, LLP and Garfinkle Biderman LLP acted as legal counsel to Balanced Health Botanicals.

About Balanced Health Botanicals
Balanced Health Botanicals™ (BHB) is a family of hemp-derived CBD brands that includes CBDistillery™ and BOTA™. Flagship brand CBDistillery™ was founded in Denver in 2016 to pursue a rapidly growing and predominantly untapped market. It has since evolved into one of the largest CBD brands in the market, sold in retailers nationwide. The all-new BOTA™ is a line of premium plant-powered skincare and supplements that combines powerful natural botanicals with hemp-derived CBD. BHB's mission is to provide the highest quality, U.S. grown, hemp-derived CBD products at everyday premium pricing and to be the premier CBD education resource. BHB has made significant investments in its infrastructure, supply chain capabilities, world-class manufacturing facilities, and product portfolio to solidify itself as the leader of the #CBDMOVEMENT™.

About Village Farms International, Inc.
Village Farms leverages decades of experience as a large-scale, Controlled Environment Agriculture-based, vertically integrated supplier for high-value, high-growth plant-based Consumer Packaged Goods opportunities, with a strong foundation as a leading fresh produce supplier to grocery and large-format retailers throughout the US and Canada, and new high-growth opportunities in the cannabis and CBD categories in North America and selected markets internationally.

In Canada, the Company's wholly-owned Canadian subsidiary, Pure Sunfarms, is one of the single largest cannabis operations in the world, the lowest-cost greenhouse producer and one of the best-selling brands.

In the US, wholly-owned Balanced Health Botanicals is one of the leading CBD brands and e-commerce platforms in the country.  Subject to compliance with all applicable US federal and state laws, Village Farms plans to enter the US high-THC cannabis market via multiple strategies, leveraging one of the largest greenhouse operations in the country (more than 5.5 million square feet in West Texas), as well as the operational and product expertise gained through Pure Sunfarms' cannabis success in Canada.

Internationally, Village Farms is targeting selected, nascent, legal cannabis and CBD opportunities with significant medium- and long-term potential, with an initial focus on the Asia-Pacific region and Europe.

¹Brightfield Group: 2021 Mid-Year US CBD Report.