Village Farms (TSX: VFF) (NASDAQ: VFF) is set to become very well capitalized in the near term. The company this morning announced that it has entered into definitive agreements with institutional investors to raise gross proceeds of US$135.0 million (C$171.0 million) in what is referred to as a registered direct offering.
The offering will see the company issue roughly 10.9 million common shares of its equity, at a price of US$12.40 (C$15.70) per share. No warrants are included in the financing. Alliance Global Partners and Raymond James are acting as co-lead placement agents on the transaction.
Net proceeds from the financing are expected to be utilized for general working capital purposes, with no further details provided by the firm.
The financing is expected to close on January 20, 2021.
Village Farms last traded at $18.12 on the TSX.
Information for this briefing was found via Sedar and Village Farms International. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
