Item 8.01Other Events.
On May 21, 2021, Village Farms announced that the TSX has accepted a notice filed by the Company of its intention to make a NCIB. The NCIB notice provides that Village Farms may, during the 12-month period commencing May 26, 2021 and terminating May 25, 2022, purchase up to 4,062,309 of its common shares (the “Common Shares”), representing approximately 5% of the Company’s issued and outstanding Common Shares, by way of a NCIB over the facilities of the TSX, The NASDAQ Stock Market LLC and/or through alternative trading systems in Canada and the United States.
As of the close of business on May 13, 2021, Village Farms had 81,246,191 outstanding Common Shares. Based on the average daily trading volume of 932,973 Common Shares during the six months ended April 30, 2021 (calculated in accordance with the rules of the TSX), daily purchases will be limited to 233,243 Common Shares, other than block purchase exceptions.
Decisions regarding the timing of future purchases of Common Shares will be based on market conditions, price of the Common shares and other factors. Village Farms may elect to suspend or discontinue its NCIB at any time. Common Shares purchased under the NCIB will be cancelled. Village Farms has not purchased any of its Common Shares during the last twelve months.
Repurchases will be subject to compliance with applicable United States federal securities laws, including Rule 10b-18 under the Exchange Act, as well as applicable Canadian securities laws.
From time to time, when the Company does not possess material non-public information about itself or its securities, it may enter into automatic repurchase plans with its broker to allow for the repurchase of Common Shares, subject to certain trading parameters, at times when it ordinarily would not be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise. Any such plans entered into with a broker will be adopted in accordance with applicable Canadian and U.S. securities laws, including the requirements of Rule 10b5-1 under the Exchange Act. Outside of these periods, Common Shares may be repurchased in accordance with management’s discretion, subject to applicable law.
Cautionary Statement Regarding Forward-Looking Information
This Current Report on Form 8-K contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Exchange Act, and is subject to the safe harbor created by those sections. This Current Report on Form 8-K also contains "forward-looking information" within the meaning of applicable Canadian securities laws. 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, including repurchases under the NCIB, 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 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 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 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 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. The forward-looking statements in this Current Report on Form 8-K are subject to risks that may include, but are not limited to, market conditions and the Company’s access to liquidity and capital resources to finance repurchases under the NCIB, and the other risk factors contained in the Company's filings with securities regulators, including the Company’s annual report on Form 10-K and most recently filed quarterly report on Form 10-Q.
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 Current Report on Form 8-K relate only to events or information as of the date on which the statements are made in this Current Report on Form 8-K. 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.