Village Farms International, Inc. VFF has entered into definitive agreements with certain institutional investors for the purchase and sale of 18.35 million of its common shares together with warrants to purchase up to 18.35 million 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 $25 million, 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, 2023. 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.
Village Farms shares were trading 38% lower at $0.9361 per share at the time of writing Thursday morning.
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