Village Farms International Inc (OTCMKTS:VFFIF) has entered into a bought deal financing deal with underwriters led by Beacon Securities Limited for $20,035,300. As per the terms of the accord, the underwriters will acquire 2.81 million common shares of the company at a strike price of $7.13. The company has also granted an option to the underwriters to acquire additional up to 15% of the offered common shares within 30 days of closing the deal. The deal is subject to regulatory approval and likely to be closed on or before October 12, 2018. The company will use the net proceeds for general corporate and working capital requirements.
Pure Sunfarms, A JV of Village Farms International, Announces Receipt of 4th Amendment to Cultivation License
Pure Sunfarms, a 50:50 joint venture of Emerald Health Therapeutics Inc (OTCMKTS:EMHTF) and Village Farms International, has received 4th Amendment to the license for cultivation from Health Canada for Delta 3 greenhouse based in Delta, BC. The new amendment allows the JV to expand the area of cannabis production to 550,000 sq. feet. The expanded production facility is expected to be operational by mid October, 2018.
Chief Executive Officer of Village Farms International, Michael DeGiglio said it is a significant step to get the approval for 550,000 sq. feet production facility in just 6 months after the receipt of initial cultivation license. He is really proud of the team at Pure Sunfarms for their commendable efforts.
Chris Wagner, Chief Executive Officer of Emerald said the JV is putting in considerable efforts to produce cost effective and high quality cannabis before the expected legalization of cannabis for adult use on October 17, 2018.
Health Canada has awarded the sales license to Pure Sunfarms in July 2018. The license allows the JV to sell the produce of Delta 3 greenhouse facility. The joint venture is aiming to enhance the production facility to 1.1 million sq. ft. by the end of 2018. The new facility will have seventeen grow rooms for harvesting throughout the year. It will also have an automated process line, drying, trimming, and packaging facilities. The company is aiming for a significant increase in sales.