Village Farms Settles Insurance Claim on its Texas Greenhouse Operations
TRADING SYMBOL: The Toronto Stock Exchange:
Village Farms International, Inc. - VFF
VANCOUVER, Sept. 5, 2013 /CNW/ - Village Farms International, Inc. (the "Company") (TSX: VFF) announced today it settled its insurance claim for losses resulting from the major hail storm in Marfa, Texas on May 31, 2012. After meeting with Travelers Insurance Company, the parties agreed to a final payment of US$11.25 million settling all outstanding claims pertaining to the hail storm. The parties have agreed to release each other from any further claims resulting from the hail storm, and the Company will drop its lawsuit currently pending in Federal Court.
Michael DeGiglio, CEO of the Company stated, "We are pleased to have reached this fair and equitable settlement. In our 25 year history, we have never experienced such a catastrophic weather event, nor handled a claim of this magnitude, so we are thankful to have this completed and hope that it never occurs again. The catastrophic hail storm event took tremendous fortitude and perseverance from many employees across multiple disciplines over the last fifteen months and we are extremely proud of all they have accomplished. While later than we had planned, this settlement will allow us to commence and complete repairs on 20 acres of the Marfa greenhouse, as well as provide sufficient proceeds to fund its start up. We expect to have the facility operational in the spring/summer of 2014. When these acres are completed; 75% of the damaged acres (60 of the 80 damaged acres) will be repaired and producing, resulting in the Company having 130 producing acres in Texas and 110 acres in British Columbia. This will allow for the fulfillment of our growing retailer demand as well as provide incremental production area for the growing demand of our new exclusive varieties. We have completed a number of challenges over the past year and remain motivated and steadfast to continue our growth ahead."
About Village Farms
Village Farms is one of the largest producers, marketers and distributors of premium-quality, greenhouse-grown tomatoes, bell peppers and cucumbers in North America. This premium product as well as premium product produced under exclusive arrangements with other greenhouse producers is grown in sophisticated, highly efficient and intensive agricultural greenhouse facilities located in British Columbia and Texas. Product is marketed and distributed under the Village Farms® brand primarily to retail grocers and dedicated fresh food distributors throughout the United States and Canada. Village Farms currently operates distribution centres located in key markets in the United States and Canada. Since its inception, Village Farms has been guided by sustainable agricultural principles which integrate three main goals; environmental health, economic profitability, and social and economic equality.
Forward Looking Statements
This press release contains certain "forward looking statements". These statements relate to future events or future performance and reflect our expectations regarding our growth, results of operations, performance, business prospects, opportunities or industry performance and trends. These forward looking statements reflect our current internal projections, expectations or beliefs and are based on information currently available to us. In some cases, forward looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict" , "potential", "continue" or the negative of these terms or other comparable terminology. A number of factors could cause actual events or results to differ materially from the results discussed in the forward looking statements. In evaluating these statements, you should specifically consider various factors, including, but not limited to, such risks and uncertainties as availability of resource, competitive pressures and changes in market activity, risks associated with U.S. and international sales and foreign exchange, regulatory requirements and all of the other "Risk Factors" set out in the Company's current annual information form and management's discussion and analysis for the quarter ended March 31, 2013, which is available electronically at www.sedar.com. Actual results may differ materially from any forward looking statement. Although we believe that the forward looking statements contained in this press release are based upon reasonable assumptions, you cannot be assured that actual results will be consistent with these forward looking statements. These forward looking statements are made as of the date of this press release, and other than as specifically required by applicable law, we assume no obligation to update or revise them to reflect new events or circumstances.
SOURCE Village Farms International, Inc.For further information:
Stephen C. Ruffini, Executive Vice President and Chief Financial Officer, 407-936-1190 ext 340, firstname.lastname@example.org.