overall affect our ability to achieve profitability. In addition, any significant disruption of global financial markets, reducing our ability to access capital or our credit facilities, could
negatively affect our liquidity. Any of the foregoing effects from the COVID-19 pandemic could materially adversely affect our business, prospects and future results of operations, and the value of our Common
Shares.
Recently, due the COVID-19 pandemic, the Canadian government closed its borders to all
foreign people, but subsequently, due to the negative impact on the Canadian agricultural industry, decided that foreign worker program will continue subject to new rules and regulations such as a mandatory
14-day quarantine period. Any disruption in the Canadian foreign worker program could have a detrimental impact on our ability to cultivate fresh produce.
In the case of our facilities in west Texas, a significant portion of our labor are documented workers in Mexico who cross the U.S. border on
a daily basis into Texas. Recently, as a response to the COVID-19 pandemic, the U.S. government has closed the U.S./Mexico border but has determined that agricultural workers are essential. Currently, our
Mexican employees have permission to continue to cross the border. There can be no assurance that we would be able to continue our Texas operations without our Mexican based workforce, if any decision is made to permanently or temporarily close the
U.S./Mexico border. Any shortage of such labor could restrict our ability to operate our greenhouses profitably, or at all.
Additionally,
adult use demand for cannabis products is dependent on a number of social, political and economic factors that are beyond our control including the pace of new retail cannabis stores, which could be slowed by the impact of COVID-19. Accordingly, the initial demand that has been experienced following legalization in Canada may not continue at our anticipated levels or may not be sustainable.
We are still assessing the impact COVID-19 may have on our operations and business prospects, but
there can be no assurance that this analysis will enable us to avoid part or all of any impact from the spread of COVID-19 or its consequences, including an economic downturn generally or in our sectors in
particular. Accordingly, COVID-19 may have a material adverse effect on our business and future results of operations and financial condition.
Forward-Looking Statements
Certain
statements contained in this Current Report on Form 8-K constitute forward-looking information within the meaning of applicable securities laws (“forward-looking statements”). Forward-looking
statements may relate to Village Farms’ future outlook or financial position and anticipated events or results and may include statements regarding the financial position, business strategy and plans and objectives. Particularly, statements
regarding future results, performance, achievements, prospects or opportunities for Village Farms, Pure Sunfarms, the greenhouse vegetable industry or the cannabis and hemp industries 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”, “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.
Although the forward-looking statements
contained in this Current Report on Form 8-K are based upon assumptions that management believes are reasonable based on information currently available to management, there can be no assurance that actual
results or events will be consistent with these forward-looking statements. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond Village Farms’ control, that may cause Village
Farms’ or the industry’s actual results, performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties
include, among other things, the factors contained in Village Farms’ filings with U.S. and Canadian securities regulators. In particular, we caution you that our forward-looking statements are subject to the ongoing and developing circumstances
related to COVID-19, which may have a material adverse effect on our business, operations and future financial results.
When relying on forward-looking statements to make decisions, Village Farms 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, events, performance, achievements, prospects and opportunities. The forward-looking statements made in this Current
Report on Form 8-K only relate to events or information as of