Village Farms International Announces Completion of Pure Sunfarms' CAD$20 Million Credit Facility with Bank of Montreal and Farm Credit Canada
Feb 13, 2019, 07:00 ET
VANCOUVER, Feb. 13, 2019 /CNW/ - Village Farms International, Inc. ("Village Farms" or the "Company") (TSX:VFF) (OTCQX: VFFIF) today announced that its 50%-owned joint venture for large-scale, low-cost, high-quality cannabis production, Pure Sunfarms Corp. ("Pure Sunfarms") has entered into a credit agreement with Bank of Montreal ("BMO"), as agent and lead lender and Farm Credit Canada ("FCC") as lender (together with BMO, the "Lenders") in respect of a CAD$20 million secured non-revolving term loan (the "Credit Facility"). Pure Sunfarms intends to use the funds available under the Credit Facility to finance the final costs of converting its 1.1 million square foot greenhouse for cannabis production, the vast majority of which was completed in January of this year. The funds available under the Credit Facility may also be used for general corporate purposes.
"The ability to establish this Credit Facility with Bank of Montreal, a Canadian Schedule I bank, and Farm Credit Canada, the country's leading agriculture lender, is a testament to the strength and potential of Pure Sunfarms," said Michael DeGiglio, Chief Executive Officer, Village Farms International. "Village Farms has long-standing relationships with both BMO and FCC, each of which, based on our extensive histories, recognizes and values our three decades of large-scale greenhouse production experience and deep expertise throughout the supply chain. We are pleased to now extend these relationships to Pure Sunfarms as it rapidly approaches full production at one of the single largest cannabis facilities in the world and begins to generate positive cash flow from operations as expected in the first quarter of 2019."
"Pure Sunfarms is proud to enter into this Credit Facility with these two highly respected institutional lenders," said Mandesh Dosanjh, President and Chief Executive Officer, Pure Sunfarms. "This is truly an exciting time for our organization and we are appreciative of the support of each as Pure Sunfarms establishes itself as a vertically integrated supplier to the Canadian cannabis market."
The Credit Facility, which matures on February 7, 2022, is secured by Pure Sunfarms' greenhouse facility, and contains customary financial and restrictive covenants.
With conversion of all growing areas, totaling more than one million square feet, of its greenhouse facility completed, Pure Sunfarms expects to be in production in all quadrants of the facility in the first quarter of this year and to reach full run rate annual production of 75,000 kilograms mid-year. The technologically-advanced Delta 3 greenhouse design is based on decades of large-scale, low-cost agricultural production experience and extensive cannabis expertise, resulting in a state-of-the-art facility with 16 grow rooms optimized for year-round harvesting (more than 80 harvests annually).
About Village Farms International, Inc.
Village Farms International, Inc. is one of the largest and longest-operating vertically integrated greenhouse growers in North America and the only publicly traded greenhouse produce company in Canada. Village Farms produces and distributes fresh, premium-quality produce with consistency 365 days a year to national grocers in the U.S. and Canada from more than nine million square feet of Controlled Environment Agriculture (CEA) greenhouses in British Columbia and Texas, as well as from its partner greenhouses in British Columbia, Ontario and Mexico. The Company is now leveraging its 30 years of experience as a vertically integrated grower for the rapidly emerging global cannabis opportunity through its 50% ownership of British Columbia-based Pure Sunfarms Corp., one of the single largest cannabis growing operations in the world. The Company also intends to pursue opportunities to become a vertically integrated leader in the U.S. hemp and CBD markets, subject to compliance with all applicable U.S. federal and state laws.
Cautionary Language
Certain statements contained in this press release constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Forward-looking statements may relate to the Company's future outlook or financial position and anticipated events or results and may include statements regarding the financial position, business strategy, budgets, litigation, projected production, projected costs, capital expenditures, financial results, taxes, plans and objectives of or involving the Company. Particularly, statements regarding future results, performance, achievements, prospects or opportunities for the Company, Pure Sunfarms, the greenhouse vegetable industry or the cannabis and hemp industries are forward-looking statements. In some cases, forward-looking information can be identified by such terms as "outlook", "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue", "likely", "schedule", "objectives", or the negative or grammatical variation thereof or other similar expressions concerning matters that are not historical facts.
Although the forward-looking statements contained in this press release are based upon assumptions that management believes are reasonable based on information currently available to management, there can be no assurance that actual results will be consistent with these forward-looking statements. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond the Company's control, that may cause the Company's or the industry's actual results, performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, the factors contained in the Company's filings with securities regulators, including as detailed in the Company's annual information form and management's discussion and analysis for the year-ended December 31, 2017.
When relying on forward-looking statements to make decisions, the Company cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future results, performance, achievements, prospects and opportunities. The forward-looking statements made in this press release only relate to events or information as of the date on which the statements are made in this press release. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Village Farms International, Inc.
For further information: Lawrence Chamberlain, Investor Relations, LodeRock Advisors, (416) 519-4196, [email protected]