It appears that Tilray Inc (NASDAQ: TLRY) isn’t the only cannabis firm searching for cash despite the current market environment. This morning, Village Farms International (TSX: VFF) (NASDAQ: VFF) announced a registered direct offering to the tune of $10 million.
The offering is being conducted by that of Beacon Securities, whom is working as the sole underwriter for the financing. Village Farms has agreed to issue up to 3,125,000 common shares in connection with the offering, at a price per share of $3.20 for gross proceeds of $10.0 million. An over allotment option also exists, for up to 15% in additional shares.
The offering is expected to close by March 24, with gross proceeds to be used for working capital and general corporate purposes. As of the last reporting period, which was September 30, 2019, Village Farms had US$6.7 million in cash on hand, subsequent to which it conducted a bought deal financing for net proceeds of C$26.9 million.
Village Farms last traded at $3.59 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.