Village Farms announces $25M registered direct offering

Village Farms announced that it has entered into definitive agreements with certain institutional investors for the purchase and sale of 18,350,000 of its common shares together with warrants to purchase up to 18,350,000 common shares, pursuant to a registered direct offering. The common shares and warrants are being sold at a combined purchase price of $1.35 per share and accompanying warrant for expected gross proceeds of approximately $25M, before deducting placement agent fees and other offering expenses payable by Village Farms. The warrants will have an exercise price of $1.65, will be exercisable beginning six months from issuance and will expire five years from the date of initial exercisability. The closing of the offering is subject to customary closing conditions, and is expected to close on or about January 30. The net proceeds from this offering are intended to be used for general working capital purposes. A.G.P./Alliance Global Partners and Cantor Fitzgerald & Co. are acting as co-lead placement agents for the offering.