Village Farms International (VFF) has become Canada’s top cannabis producer based on market share, according to a new report by Canadian Imperial Bank of Commerce (CM).
CIBC says that Village Farms has overtaken rival Tilray (TLRY) to claim the top spot in Canada’s cannabis rankings following a recalculation of how provinces tally sales of the recreational drug.
Village Farms now has a 7.8% share of the country’s cannabis market, while Tilray saw its ranking slip to second place with 7.3% market share. Decibel Cannabis (DB) sits in third place with a 6.5% share of Canada’s cannabis market, says CIBC.
Canopy Growth (WEED), which was once Canada’s biggest cannabis company, has now fallen to eighth place with a 4.3% share despite having the largest amount of cash in the domestic industry with $1.1 billion.
The CIBC report emphasized that cannabis producers in Canada will increasingly have to generate positive cash flow to fund operations or rely on existing cash reserves, as access to capital has dried up throughout the industry.
The report also highlights the continued restrictions to foreign entrants in the U.S. market as a major hurdle for Canadian cannabis producers.
Village Farms’ stock has fallen 76% in the past 12 months to $1.47 U.S. per share. The stock trades on the Nasdaq exchange in America.
