– Expanded Facility Provides
Additional Financial Resources and Flexibility as Pure Sunfarms
Continues to Build on its Success to Date as a Leading Canadian
Cannabis Producer and Brand –
VANCOUVER, March 31, 2020 /CNW/ - Village Farms
International, Inc. ("Village Farms" or the "Company") (TSX: VFF;
NASDAQ: VFF) today announced its majority-owned joint venture
for large-scale, low-cost, high-quality cannabis production, Pure
Sunfarms, has expanded its credit facility with its existing lender
to $59 million, including accordion
provisions of $22.5 million.
The expanded credit facility (the "Credit Facility") consists of a
$7.5 million revolving operating loan
(the "Revolver") and a $10 million
term loan (the "New Term Loan"), in addition to its existing
$19 million term loan (the "Existing
Term Loan"). The New Term Loan is specifically designated for
the 1.1 million square foot Delta 2 greenhouse while the Existing
Term Loan is specifically designated for the 1.1 million square
foot Delta 3 greenhouse facility. (All figures are in
Canadian dollars.)
The $7.5 million Revolver and the
$10 million New Term Loan include an
accordion provision that allows Pure Sunfarms to request additional
lender commitments of up to an additional $7.5 million and $15
million, respectively, subject to an additional lender
entering the syndicate on or before May
30, 2020. Each of the components of the Credit
Facility, including the Existing Term Loan, mature on February 7, 2022.
The finalization of the Credit Facility is subject to Pure
Sunfarms satisfying certain pre-conditions, including an additional
capital contribution by Village Farms of $8
million to Pure Sunfarms (the "Additional Capital
Contribution"), which is expected to be completed this week. Upon
completion of the Additional Capital Contribution, Village Farms
will have further increased its majority ownership of Pure Sunfarms
to 58.7%.
"This significantly expanded credit facility provides Pure
Sunfarms with financial resources and flexibility as it continues
to build on its success to date as a leading Canadian cannabis
producer and brand," said Michael
DeGiglio, CEO, Village Farms. "This financing is yet
another expression of confidence in the strength and potential of
the Pure Sunfarms business and we appreciate the continuing support
of Pure Sunfarms existing lender."
About Village Farms International, Inc.
Village Farms is one of the largest and longest-operating
vertically integrated greenhouse growers in North America and the only publicly traded
greenhouse produce company in Canada. Village Farms produces and distributes
fresh, premium-quality produce with consistency 365 days a year to
national grocers in the U.S. and Canada from more than nine million square feet
of Controlled Environment Agriculture (CEA) greenhouses in
British Columbia and Texas, as well as from its partner greenhouses
in British Columbia, Ontario and Mexico. The Company is now
leveraging its 30 years of experience as a vertically integrated
grower for the rapidly emerging global cannabis opportunity through
its majority ownership of British
Columbia-based Pure Sunfarms Corp., one of the single
largest cannabis growing operations in the world. The Company
also intends to pursue opportunities to become a vertically
integrated leader in the U.S. hemp-derived CBD market, subject to
compliance with all applicable U.S. federal and state laws, Village
Farms has established two joint ventures, Village Fields Hemp and
Arkansas Valley Green and Gold Hemp, for outdoor hemp cultivation
and CBD extraction and is pursuing controlled environment hemp
production at a portion of its Texas greenhouse operations, which total 5.7
million square feet of production area.
Cautionary Language
Certain statements contained in this press release constitute
forward-looking information within the meaning of applicable
securities laws ("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, 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, 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 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 U.S. and Canadian securities regulators, including as detailed
in the Company's annual information form and management's
discussion and analysis for the year-ended December 31, 2018.
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 only
relate 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.
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content:http://www.prnewswire.com/news-releases/village-farms-international-announces-expansion-of-pure-sunfarms-credit-facility-with-existing-lender-by-up-to-59-million-301032419.html
SOURCE Village Farms International, Inc.