VANCOUVER, BC, Sept. 10, 2020 /PRNewswire/ - Village Farms
International, Inc. ("Village Farms" or the "Company") (NASDAQ:
VFF) (TSX: VFF) today announced that it has closed its previously
announced registered direct offering with certain institutional
investors for the purchase and sale of an aggregate of 9,396,226
units at a purchase price of US$5.30
per unit for gross proceeds of approximately US$49.8 million before placement agent fees and
other offering expenses payable by Village Farms.
Each unit that was sold consists of one common share of Village
Farms and a one-half (0.5) of a warrant to purchase a common share
of Village Farms at an exercise price of US$5.80. The warrants will be exercisable
beginning on March 10, 2021 and will
expire on September 10, 2025.
Village Farms intends to use up to US$40
million of the net proceeds from this offering to finance a
portion of the acquisition of 36,958,500 common shares in the
capital of Pure Sunfarms Corp. ("Pure Sunfarms"), representing
41.3% of the issued and outstanding common shares of Pure Sunfarms
and all of the remaining common shares of Pure Sunfarms not held by
the Company, as announced by the Company on September 8, 2020. The remaining net proceeds
from this offering are intended to be used for general working
capital.
Upon closing of the offering, there were 65,951,810 issued and
outstanding common shares of Village Farms.
A.G.P./Alliance Global Partners acted as sole placement agent
for the offering. Beacon Securities Limited acted as financial
advisor for the offering.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
About Village Farms International, Inc.
Village Farms is one of the largest and longest-operating
greenhouse growers in North
America, and is leveraging its decades of experience as a
large-scale, low-cost intensive agriculture and vertically
integrated produce supplier to pursue high-value, high-growth
plant-based Consumer Packaged Goods opportunities in cannabis and
CBD in North America and selected
markets internationally.
In Canada, British-Columbia-based Pure Sunfarms is one of
the single largest cannabis operations in the world, the
lowest-cost greenhouse producer, one of the best-selling brands,
and has generated profitability for six consecutive quarters.
In the U.S., subject to compliance with all applicable U.S.
federal and state laws, Village Farms is pursuing a strategy to
become a leading developer and supplier of branded and
white-labeled CBD products targeting "big box" and other
major retailers and consumer packaged goods companies, and with one
the largest greenhouse operations in country, is well positioned
for the potential federal legalization of high-THC cannabis.
Internationally, Village Farms is strategically targeting
selected, nascent, legal cannabis and CBD opportunities with
significant long-term potential, with an initial focus on the
Asia-Pacific region through its
investment in Australia-based
Altum International.
Cautionary Statement Regarding Forward-Looking
Information
This press release contains forward-looking statements within
the meaning of the United States Private Securities Litigation
Reform Act of 1995, Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of 1934, as
amended, and is subject to the safe harbor created by those
sections. This press release also contains "forward-looking
information" within the meaning of applicable Canadian securities
law. We refer to such forward-looking statements and
forward-looking information collectively as "forward-looking
statements". Particularly, statements regarding the intended use of
proceeds, the acquisition of the remaining interest in Pure
Sunfarms, and the future results, performance, achievements,
prospects or opportunities for the Company, the greenhouse
vegetable industry, the cannabis industry or other risks discussed
in the Company's Form 10-K filed on April 1,
2020 and its other filings with the SEC are forward-looking
statements. In some cases, forward-looking information can be
identified by such terms as "outlook", "may", "might", "will",
"could", "should", "would", "occur", "expect", "plan",
"anticipate", "believe", "intend", "try", "estimate", "predict",
"potential", "continue", "likely", "schedule", "objectives", or the
negative or grammatical variation thereof or other similar
expressions concerning matters that are not historical facts. When
relying on forward-looking statements to make decisions, the
Company cautions readers not to place undue reliance on these
statements, as forward-looking statements involve significant risks
and uncertainties and should not be read as guarantees of future
results, performance, achievements, prospects and opportunities.
The forward-looking statements made in this press release relate
only to events or information as of the date on which the
statements are made in this press release. Except as required by
law, the Company undertakes no obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise, after the date on which
the statements are made or to reflect the occurrence of
unanticipated events.
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SOURCE Village Farms International, Inc.