Village Farms Shares Slightly Up On $25M Direct Offering, CEO's Ownership Dilution

Village Farms International, Inc.  VFF has completed its previously announced registered direct offering with certain institutional investors for the purchase and sale of an aggregate of 18.4 million shares at $1.35 per share, together with accompanying warrants to purchase up to 18.4 million shares, which have an exercise price of $1.65 per share.

The proceeds from the sale of the common shares are approximately $25 million, before deducting placement agent fees and other offering expenses payable by Village Farms. The warrants will be exercisable beginning on July 30, 2023 and will expire on July 30, 2028. Proceeds from the exercise of all the warrants would be approximately US$30 million over this period.

The net proceeds from this offering are intended to be used for general working capital purposes.

Upon closing of the Offering, there were 110,238,929 issued and outstanding common shares of Village Farms. 

A.G.P./Alliance Global Partners and Cantor Fitzgerald & Co. acted as co-lead placement agents for the offering.

Updated Early Warning Disclosure 

As a result of the offering, Michael DeGiglio's (founder, president, chief executive officer and director of Village Farms) ownership of Village Farms was diluted below 10% of Village Farms' issued and outstanding common shares. DeGiglio did not participate in the offering.

Because DeGiglio now owns or exercises control or direction over less than 10% of the issued and outstanding common shares of Village Farms, he is no longer subject to ongoing early warning reporting requirements under applicable Canadian securities laws in respect of his ownership of Village Farms.

Price Action: 

Village Farms shares were trading 6.93% higher at $0.07 per share at the time of writing Tuesday morning.

The most successful cannabis business event in the world, the Benzinga Cannabis Capital Conference, returns to Miami for its 16th edition.
This is the place where DEALS GET DONE, where money is raised, M&A starts, and companies meet investors and key partners. Join us at the Fontainebleau Miami Beach Hotel in Florida on April 11-12. Don’t miss out.
Secure your tickets now. Prices will surge very soon.

Photo: Courtesy of Ryan Lange on Unsplash