Village Farms International and Hemp for Victory File Request for Reconsideration Against DEA in Marijuana Rescheduling Proceedings

Parties request court action to disqualify DEA, citing new evidence of misconduct impacting marijuana rescheduling efforts.

Quiver AI Summary

Village Farms International, Inc. and Hemp for Victory have jointly filed a Request for Reconsideration to disqualify the Drug Enforcement Administration (DEA) from its role as proponent of a Proposed Rule to reschedule marijuana from Schedule I to Schedule III. This follows a previous motion denied in November 2024. The Parties assert new evidence indicates extensive DEA misconduct, including undisclosed conflicts of interest and improper communication that unfairly disadvantages pro-rescheduling advocates. They are urging the court for immediate corrective action and plan to provide a good faith affidavit alleging bias against the DEA. Village Farms CEO Michael DeGiglio condemned the DEA's actions as an attempt to obstruct cannabis rescheduling, emphasizing their commitment to a transparent process and the health implications for Americans.

Potential Positives

• The joint filing for a Request for Reconsideration indicates a proactive stance by Village Farms in advocating for cannabis rescheduling, aligning with industry interests.
• The assertion of widespread DEA wrongdoing could draw public and legal scrutiny on the DEA's procedures, potentially strengthening Village Farms' position in ongoing regulatory discussions.
• The filing's call for immediate corrective action reflects a commitment to transparency and fairness in regulatory processes, which may enhance Village Farms' reputation in the industry.
• As a leading cannabis operator, Village Farms’ involvement in the proposal to reschedule marijuana supports its long-term business strategy and growth in high-value markets.

Potential Negatives

• The press release indicates that Village Farms International is facing significant legal challenges regarding the proposed rescheduling of cannabis, suggesting ongoing conflict with federal authorities.
• Allegations of widespread DEA wrongdoing and bias, as stated in the release, could harm the company's reputation and relationships with regulatory bodies.
• The emphasis on the need for an immediate evidentiary hearing raises concerns about the legitimacy and transparency of existing and future proceedings involving Village Farms.

FAQ

What prompted Village Farms and Hemp for Victory to file a renewed Request?

The filing was prompted by new evidence of widespread DEA wrongdoing affecting the proposed rescheduling of cannabis.

What is the significance of the renewed Request filed on January 6, 2025?

The renewed Request seeks to disqualify the DEA from proceedings due to undisclosed conflicts and improper communications undermining fairness.

How does this Request affect the proposed rescheduling of marijuana?

The Request aims to ensure a fair examination of the proposal to reschedule marijuana from Schedule I to Schedule III.

What evidence was presented in the Request regarding the DEA's actions?

The evidence includes claims of hostility toward pro-rescheduling Participants and improper off-the-record assistance given to opposing parties.

Where can I access the complete filing of the renewed Request?

The complete filing is available in the FAQ section of Village Farms' website at www.villagefarms.com/investors-faq.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$VFF Insider Trading Activity

$VFF insiders have traded $VFF stock on the open market 6 times in the past 6 months. Of those trades, 1 have been purchases and 5 have been sales.

Here’s a breakdown of recent trading of $VFF stock by insiders over the last 6 months:

• STEPHEN C RUFFINI (Chief Financial Officer) purchased 20,000 shares.
• MICHAEL A DEGIGLIO (Chief Executive Officer) has traded it 5 times. They made 0 purchases and 5 sales, selling 408,779 shares.

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$VFF Hedge Fund Activity

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• BLACKROCK, INC. removed 948,639 shares (-96.4%) from their portfolio in Q3 2024
• TIDAL INVESTMENTS LLC added 640,148 shares (+35.7%) to their portfolio in Q3 2024
• FISHMAN JAY A LTD/MI added 517,281 shares (+890.0%) to their portfolio in Q3 2024
• MANUFACTURERS LIFE INSURANCE COMPANY, THE removed 440,329 shares (-100.0%) from their portfolio in Q3 2024
• CAMBRIA INVESTMENT MANAGEMENT, L.P. added 404,918 shares (+116.5%) to their portfolio in Q3 2024
• RENAISSANCE TECHNOLOGIES LLC removed 264,705 shares (-19.3%) from their portfolio in Q3 2024
• JANE STREET GROUP, LLC added 220,105 shares (+117.6%) to their portfolio in Q3 2024

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Full Release

– Parties urge the court to take immediate corrective action in response to renewed Request –

– Filing asserts that DEA is using authority in these proceedings to thwart a proposal it vehemently opposes –

– New evidence of widespread DEA wrongdoing necessitates Agency’s removal from participation in proceedings –

ORLANDO, Fla. and VANCOUVER, British Columbia, Jan. 06, 2025 (GLOBE NEWSWIRE) -- Village Farms International, Inc. (“Village Farms” or the “Company”) (NASDAQ: VFF) and Hemp for Victory (collectively, “The Parties”), today announced that they jointly filed a Request for Reconsideration (the “Request”) of their prior motion to disqualify and remove the Drug Enforcement Administration (“DEA” or the “Agency”) from its role as proponent of the Proposed Role to reschedule marijuana from a Schedule I to a Schedule III drug. The initial motion to disqualify was filed on November 18, 2024 and subsequently denied, but since then new evidence has emerged that The Parties believe reflect widespread DEA wrongdoing which necessitates the Agency’s disqualification from participation in these proceedings and its removal as the proponent of the Proposed Rule.

The Parties’ renewed Request contains additional evidence of undisclosed conflicts of interest and extensive improper ex parte communications by the DEA which must be disclosed and made part of the public record. It also asserts that the DEA’s hostility toward the Proposed Rule has prejudiced pro-rescheduling Designated Participants (“DPs”), that the DEA extended off-the-record assistance to anti-rescheduling DPs that was not offered to seemingly qualified pro-rescheduling DPs, and that the DEA has undermined the pro-rescheduling DPs’ significant procedural rights. The Parties have urged the court to take immediate corrective action in response to this renewed Request. Village Farms will also take further procedural action by submitting a good faith affidavit to the DEA and Department of Justice (“DOJ”) alleging DEA bias, which provides an independent basis for a continuance of the hearing and thus good cause for the filing of the renewed Request.

Shane Pennington, partner at Porter Wright Morris & Arthur, LLP and counsel to Village Farms and Hemp for Victory commented, “The new evidence presented in this filing strongly suggests the DEA is using its authority in these proceedings to subvert the process and thwart the Schedule III proposal which it vehemently opposes. We believe an immediate special evidentiary hearing into the nature, extent, source, and effect of all ex parte communications is essential, and until that process is unquestionably complete there will be no way to ensure fairness and transparency, preserve any meaningful opportunity for judicial review based on the whole record, or to salvage the public legitimacy of these proceedings.”

Michael DeGiglio, retired U.S. Navy captain, naval aviator and President, Chief Executive Officer and Founder of Village Farms concluded, “Our initial motion reflected a desire for a more transparent process consistent with the rule of law and precedent proceedings. However, since then our view has only strengthened that these proceedings are a sham orchestrated by the DEA to stonewall cannabis from being transferred to a Schedule III designation. This would be a disgraceful outcome that will continue to harm the health and safety of Americans and benefit Big Pharma and harmful addictive drugs like opioids. On behalf of our entire industry, we intend to do everything we can to support the rescheduling of cannabis and to prevent a failed outcome from occurring.”

A complete copy of The Parties’ renewed Request filed on January 6, 2025 is accessible in the FAQ section of Village Farms’ website at

www.villagefarms.com/investors-faq

.

About Hemp for Victory

Hemp for Victory is a non-profit dedicated to educating the public about why veterans are using cannabis over pills. Today, its Board of Directors has grown to almost half a dozen leaders with military, medical, and academic backgrounds. Hemp for Victory is on a mission to educate and bring awareness to the natural solution of cannabis as a way for veterans to manage mental and physical challenges as a result of their service. For more information, please visit

www.hemp4victory.info

.

About Village Farms International

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. The Company has a strong foundation as the leading and longest-tenured leading fresh produce supplier to grocery and large-format retailers throughout the US and Canada and is capitalizing on new high-growth opportunities in the cannabis and CBD categories in North America, the Netherlands 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 Canada’s best-selling brands. The Company also owns 80% of Québec-based, Rose LifeScience, a leading third-party cannabis products commercialization expert in the Province of Québec.

Internationally, Village Farms is targeting selected, nascent, legal cannabis and CBD opportunities with significant medium- and long-term potential. The Company exports medical cannabis from its EU GMP certified facility in Canada to a growing list of international markets including Germany, the United Kingdom, Israel, and Australia. The Company is expanding its international presence with additional export contracts to new countries and customers in the Asia-Pacific and European regions, as well as select strategic investments in operating assets. In Europe, wholly-owned Leli Holland has one of 10 licences to grow and distribute recreational cannabis products.

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 and stock exchange rules, 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.

Village Farms Clean Energy (VFCE), through a partnership with Atlanta-based Terreva Renewables, creates clean energy from landfill gas at its Delta RNG facility. VFCE receives royalties on all revenue generated. This partnership reduces Vancouver’s greenhouse gas emissions by 475,000 metric tons of CO2 per year, equivalent to removing more than 100,000 vehicles off the road or the energy use equivalent of powering 51,300 homes for one year.

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