AN UNMATCHED PLATFORM FOR THE GLOBAL CANNABIS OPPORTUNITY 1 - PowerPoint PPT Presentation

October 2019 AN UNMATCHED PLATFORM FOR THE GLOBAL CANNABIS OPPORTUNITY 1

Forward L d Looking ng S Statemen ents This presentation contains certain "forward looking statements". These statements relate to future events or future performance and reflect the Company's expectations regarding its growth, results of operations, performance, business prospects, opportunities or industry performance and trends. These forward looking statements reflect the Company's current internal projections, expectations or beliefs and are based on information currently available to the Company. In some cases, forward looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict" , "potential", "continue" or the negative of these terms or other comparable terminology. A number of factors could cause actual events or results to differ materially from the results discussed in the forward looking statements. In evaluating these statements, you should specifically consider various factors, including, but not limited to, such risks and uncertainties as availability of resource, competitive pressures and changes in market activity, risks associated with U.S. and Canadian sales and foreign exchange, regulatory requirements and all of the other "Risk Factors" set out in the Company's current Annual Information Form and Management’s Discussion and Analysis for the year ended December 31, 2018, which are available electronically at www.sedar.com. Actual results may differ materially from any forward looking statement. Although the Company believes that the forward looking statements contained in this presentation are based upon reasonable assumptions, you cannot be assured that actual results will be consistent with these forward looking statements. These forward looking statements are made as of the date of this presentation, and other than as specifically required by applicable law, the Company assumes no obligation to update or revise them to reflect new events or circumstances. 2

Market F t Facts ts (As of October 22, 2019) MANAGEMENT 52-WEEK LISTING MARKET SHARES & BOARD PRICE SYMBOL CAPITALIZATION HIGH/LOW OUTSTANDING OWNERSHIP 52.4 M ~20.2% CDN$516 M CDN$24.25 TSX:VFF $9.85 CDN$3.98 (basic) (basic) 56.1 M NASDAQ: $7.53 US$395 M US$18.10 (diluted) US$8.50 1 (basic) VFF 1. Commenced trading on Nasdaq on February 21, 2019. Publicly traded company on TSX since 2006 Very strong alignment of management and shareholders 3

Leveraging decades of experience as a large-scale, low-cost, vertically integrated grower for nascent large market opportunities Canadian cannabis JV already one of the Canadian Legal Cannabis: largest producers in Canada and profitable $4B+ in 2019 1 Aggressively pursuing CPG strategy to capitalize on U.S. hemp/CBD opportunity Global Hemp-Derived CBD: (outdoor and greenhouse cultivation) $22B by 2022 2 Proven ability to quickly transition existing large-scale operations to new agricultural US Legal Cannabis: opportunities $25B by 2025 3 Focused on cash flow generation and profitability 4 4 1. Deloitte 2. Brightfield Group 3. New Frontier Data

Unmatched N hed North A h American G n Greenho enhous use A e Assets 8.3 M sq. ft. (190 acres) Owned ed A Assets ts Cana nada: Delt lta, B BC 1 F 1 Facil ilit ity - Ve Vegetables ft. (60 a 60 acres) s) 2.6 M sq sq. f U.S.: W West T Tex exas 4 F 4 Facil ilit itie ies - Veget etables es 5. 5.7 7 M s M sq. f ft. (130 130 acres) Cannabis J JV 2.2 M sq. ft. (50 acres) (50% ownership) Cana nada: Delt lta, B BC 2 Facil 2 ilit itie ies: D Delt lta 2 2 & Delt lta 3 3 (formerly ly owned b by Villa lage F Farms) Growing g Me Mexi xico: 1.7+ 7+ M M sq. f ft. ( (40+ 0+ a acres) es) Ontario: io: 3. 3.0 M 0 M sq. sq. ft. ( (70 a 70 acres) Partner ers BC: BC: 3. 3.0 M 0 M sq. sq. ft. ( (70 a 70 acres) Veg egetable bles 5 5

Lea eader ers i s in n Hi High gh-Tech, ch, L Low-Cost V Vertically I Integ egrated G ed Greenh nhouse use G Growing ng 750 y 750 yea ears Ex Experts in a agr gric icult ltural l product s safety of combined master grower experience from around the world 30 30-year Leaders history developing and operating in crop m man anag agem emen ent regis gistratio ions in N North A Americ ica mega-scale greenhouses Decades of experience as a Pr Prove ven vertically integrated grower/distributor, meeting the stringent specifications of track r record a as a a North America’s top grocers low ow-cost o operator Cannabis and hemp are agricultural products like any other 6

Canad ada Pure Sunfarms: One of the Largest Vertically Integrated Cannabis Producers Delta ta, B BC 7

Pure S e Sunf nfarms: O One of Cana nada’s L Largest V Vertically I Integ egrated P ed Produc ucers 50%-Owned Joint Venture 2.2 M sq. ft. conservative projected annual yield of 150,000 kg PSF has an option on Delta 1 (owned by Village Farms) – expires Sept 2021 +2.6 M sq. ft. conservative projected annual yield of +180,000 kg Pure Sunfarms has the potential to address a substantial portion of forecasted Canadian demand 8

Di Differentiated C Cannabi bis S Strategy gy Dr Driving I g Industry-Lead eading P Performan ance e Con onversion of of e exis istin ing lar large s scale, lo low-cost prec ecision a agricultural o oper erations Extensive in-house facilities development and conversion expertise Proven operating systems and 20 years of site-specific experience Experienced growing/operational teams Decades of climatological data Established, trained labour force Supported by Village Farms’ three decades of experience growing many different crops 9

Pure Sunfarms i is Setting g the S Standard i in C Cana nada Ramp to full production of 75,000 kg annually at Delta 3 facility in <15 months 4th largest Canadian LP by cannabis sales 1 at CAD$32.3 M (Q2/19) Ability to be low-cost producer in Canada – lowest “all in” cost of production reported by a Canadian LP to date: $0.65/gm 2 Industry leading EBITDA margin: 78% (Q2/19) 1. Based on most recent quarter reported by publicly-traded Canadian LPs. 2. COGS per gram for Q2/19. COGS per gram (all in) is impacted by seasonal costs, primarily utilities and co-gen rentals that occur in winter months but not in summer months. Three consecutive quarters of profitability (all while still ramping to full production) 10 10

Delta 3 3: Rapi pid T d Trans nsition t n to Produc uction a n and S d Sales es Initiate te Comme mmenc nce Complete ete Obtain Expand Expand All ll G Growing Obtain in S Sale les Cult ltiv ivatio ion Conversio ion Conversio ion o of Sellin ling Licensed Licensed Area Are rea i in “Pack ckaging” 1 M ft 2 000 ft 2 License e of 1. 1.1 M Quadrant 1 Qu 1 License Gr Growin ing A g Area to 825, 825,000 Production License 000 ft 2 ) 000 ft 2 Pr Proce cess ss (275, 275,000 to 550, 550,000 June 2017 Oct 2017 April 2018 July 2018 Sept 2018 Jan 2019 Apr 2019 Sept 2019                 Sept 2019 Sept 2017 March 2018 May 2018 Sept 2018 Jan 2019 Mar 2019 May 2019 Comme mmenc nce File ile Obtain Comme mmenc nce Comme Co mmenc nce Complete ete Complete ete Obtain Sales es t to Cult ltiv ivatio ion Cult ltiv ivatio ion Comme mmercial- Sales es t to Conversio ion A All Licensin ing for all Processin ing Pr Provi vincial License e License Sca cale Oth ther LP LPs Gr Growin ing A g Area Growin Gr ing g Area: Licenses es Wholesale lers Applicatio ion Production >1 1 M M ft 2 Shipping of branded product to provincial wholesalers commenced mid-September 11 11

Trans nsitioning t g to a a Vertically I y Integr grated B Branded S Supplier Rec ecen ent L Licen ense A e Amen endmen ent A t Allows P Pure S e Sunfarms to to B Begin S Selling g Branded ed P Packaged ed Prod oduct D Directly t ly to Provincial ial/Territ itorial Wh al Whol olesale alers a and A Authoriz ized R Retai aile lers Capitalizi zing o on t the e current wh t wholesale Building a a prem emier er v verti tically i integr tegrated ed opportunity to to o other er L Licen ensed ed P Producers supplier wi with a a lea eading b brand a and rep eputation  President and CEO: Mandesh Dosanjh  Wholesale distribution agreements with a Canadian LP  Joined from LCBO: SVP, Supply Chain & Wholesale  2019: 40% of production @ fixed price  Developed/managed LCBO’s supply chain/wholesale  2020-22: 25% of production @ prevailing market strategy for adult-use cannabis price  Supply agreements for Ontario and B.C. (comprise more  Realizing very favorable spot market pricing than 50% of Canadian population) – in discussions with  Strong demand from other Licensed Producers other provincial/territorial wholesalers  Strategic supply arrangement with one of Canada’s largest online medical cannabis platform Extraction capabilities targeted to be in place by end of 2019 12 12