VANCOUVER, BC, Feb. 8, 2021 /CNW/ - Village Farms International,
Inc. ("Village Farms" or the "Company") (NASDAQ: VFF)
(TSX: VFF) today announced that it has repaid in full the
C$19.9 million (approximately
US$15.6 million) promissory note,
plus accrued interest of C$621,534.25
(approximately US$486,849.78), that
it originally issued to Emerald Health Therapeutics, Inc.
("Emerald") as partial consideration for the November 2020 acquisition from Emerald of the
36,958,500 common shares of Pure Sunfarms Corp. ("Pure
Sunfarms") that Village Farms did not own (the "Pure
Sunfarms Transaction"). Village Farms no longer owes any
amounts to Emerald with respect to the Pure Sunfarms
Transaction.
Village Farms Increases Ownership of Asia-Pacific Partner,
Altum International
Village Farms also announced that it has exercised a portion of
its option to make an additional equity investment in Altum
International ("Altum"), one of
the Asia-Pacific's leading cannabinoid platforms,
increasing the Company's equity ownership in Altum to just under
10% from 6.6%.
"The Altum team is making strong, steady progress on the
execution of its business plan and we are pleased to be able to
increase our equity stake in the company on similar terms to that
our of original investment," said Michael
DeGiglio, CEO, Village Farms International. "Our
international cannabis/CBD strategy is to target select emerging
markets with significant long-term potential through partnerships
with local experts who are early movers in their respective
regions. Our investment in Altum represents a capital efficient
means by which to participate in the significant opportunity in the
Asia-Pacific region, which
represents approximately one-third of the world's
GDP1."
Village Farms continues to retain the remaining portion of the
option that it did not exercise, which offers the Company the
ability to further increase its ownership in Altum in the future on
similar terms to its original investment. Village Farms made its
original investment in Altum in August
2020.
Notes
1.
|
Source: International
Monetary Fund, World Economic Outlook 2020 (Data Mapper)
|
About Altum International
Altum is delivering significant positive change for consumers
in Asia-Pacific markets. With its comprehensive
range of B2B and B2C cannabinoid products, Altum navigates a
complex regulatory landscape in order to meet an exploding regional
demand for the next generation of consumer wellness; all powered by
quality, cost-competitive and highly effective cannabinoids.
With a global mindset and regionally oriented team, Altum is
creating sustainable value for its shareholders and partners
through 'World-First' concepts, resonant brands, and safe,
compliant access to cannabinoids for Asia-Pacific. For more
information, visit www.altum.group.
About Village Farms International, Inc.
Village Farms is one of the largest and longest-operating
greenhouse growers in North America. The Company leverages
decades of experience in large-scale, low-cost intensive
agriculture as a vertically integrated produce supplier to pursue
high-value, high-growth plant-based Consumer Packaged Goods
opportunities in cannabis and CBD in North America and
select markets internationally.
The Company's wholly-owned Canadian subsidiary, British-Columbia-based Pure Sunfarms, is one
of the single largest cannabis operations in the world, the
lowest-cost greenhouse producer and one of the best-selling brands
in Canada, and has generated
profitability for seven 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 major retailers and consumer
packaged goods companies. Village Farms has one of the largest
greenhouse operations in the country and is strategically
positioned to utilize its agricultural experience and Pure
Sunfarms' operational and product expertise, to pursue potential
high-THC cannabis opportunities when legally permitted to do
so.
Internationally, Village Farms evaluates and targets select,
nascent, legal cannabis and CBD opportunities with significant
long-term potential, with an initial focus on
the Asia-Pacific region through its investments
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, (the "Securities Act") and Section 21E of the
Securities Exchange Act of 1934, as amended (the "Exchange
Act"), 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". Forward-looking statements may relate to the Company's
future outlook or financial position and anticipated events or
results and may include statements regarding the financial
position, business strategy, budgets, expansion plans, litigation,
projected production, projected costs, capital expenditures,
financial results, taxes, plans and objectives of or involving the
Company. Particularly, statements regarding future results,
performance, achievements, prospects or opportunities for the
Company, the greenhouse vegetable industry or the cannabis industry
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. The forward-looking statements in this press
release are subject to risks that may include, but are not limited
to: our limited operating history, including that of Pure Sunfarms
and our start-up operations of growing hemp in the United States; the legal status of Pure
Sunfarms' cannabis business; risks relating to obtaining additional
financing, including our dependence upon credit facilities;
potential difficulties in achieving and/or maintaining
profitability; variability of product pricing; risks inherent in
the cannabis, hemp and agricultural businesses; the ability of Pure
Sunfarms to cultivate and distribute cannabis in Canada; existing and new governmental
regulations, including risks related to regulatory compliance and
licenses (e.g., Pure Sunfarms' ability to obtain licenses for its
Delta 2 greenhouse facility as well as additional licenses under
the Canadian act respecting cannabis to amend to the Controlled
Drugs and Substances Act, the Criminal Code and other Acts, S.C.
2018, c. 16 (Canada) for its Delta
3 greenhouse facility), and changes in our regulatory requirements;
risks relating to conversion of our greenhouses to cannabis
production for Pure Sunfarms; risks related to rules and
regulations at the U.S. federal (Food and Drug Administration and
United States Department of Agriculture), state and municipal
levels with respect to produce and hemp; retail consolidation,
technological advances and other forms of competition;
transportation disruptions; product liability and other potential
litigation; retention of key executives; labor issues; uninsured
and underinsured losses; vulnerability to rising energy costs;
environmental, health and safety risks, foreign exchange exposure,
risks associated with cross-border trade; difficulties in managing
our growth; restrictive covenants under our credit facilities;
natural catastrophes; the ongoing and developing COVID-19 pandemic;
and tax risks.
The Company has based these forward-looking statements on
factors and assumptions about future events and financial trends
that it believes may affect its financial condition, results of
operations, business strategy and financial needs. Although the
forward-looking statements contained in this press release are
based upon assumptions that management believes are reasonable
based on information currently available to management, there can
be no assurance that actual results will be consistent with these
forward-looking statements. Forward-looking statements necessarily
involve known and unknown risks and uncertainties, many of which
are beyond the Company's control, that may cause the Company's 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 the Company's filings with securities regulators,
including this press release. In particular, we caution you that
our forward-looking statements are subject to the ongoing and
developing circumstances related to the COVID-19 pandemic, which
may have a material adverse effect on our business, operations and
future financial results.
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.