TRADING SYMBOL: The Toronto Stock Exchange:
Village Farms International, Inc. - VFF
VANCOUVER, June 10, 2014 /CNW/ - Village Farms International, Inc. ("Village Farms" or the "Company") announced today it has entered into a Sale and Purchase Agreement to acquire Maxim Power (B.C.), Inc., a wholly owned subsidiary of Maxim Power Corp., for CAD $4.5 million, subject to closing adjustments. The closing of the acquisition is subject to certain conditions typical for transactions of this type, including various third-party consents. Accordingly, the acquisition is expected to close between June 30, 2014 and August 29, 2014. The Company intends to satisfy purchase price from cash on hand as well as from funds advanced under a new loan that the Company is currently negotiating with a lender. It is currently anticipated that such a loan will be secured against the new facility. There can be no assurance that all conditions to the acquisition, including requirements to obtain third party consents, will be satisfied or waived.
Maxim Power (B.C.) developed and operates a co-generation facility adjacent to the Company's greenhouse operations in Delta, B.C., which uses methane gas from the City of Vancouver's landfill to generate electricity for B.C. Hydro and thermal heat for the Company's greenhouse facilities. Once acquired, the co-generation facility, which has been in operation since 2004, will continue to convert methane gas from the local landfill to produce electricity under an existing long-term power purchase agreement with B.C. Hydro, as well as generate thermal heat for the Company's greenhouse operations.
According to Michael A. DeGiglio, President and CEO of Village Farms, "This acquisition is in keeping with the Company's strong mission of sustainability in farming and growing in a responsible manner. In the short term, we believe enhancements to the co-gen facility will result in more electric generation as well as increased thermal heat for our own facilities. This will increase our ability to further reduce our use of natural gas and decrease our carbon footprint. In the longer term, working with strong partners, we plan to receive clean carbon dioxide from the co-generation facility."
Mr. DeGiglio continued, "The powerful synergy between a sustainable high-tech farming organization such as Village Farms, energy companies and municipalities builds a strong foundation to better serve the community through cleaner environmental resource initiatives."
The benefits of this acquisition are numerous.
- Sustainability: This project will decrease Village Farms' long term dependence on natural gas.
- Conservation: Vancouver land fill waste will be used as a viable energy source decreasing dependence on fossil fuels and reducing the area's carbon footprint.
- Positive Proactive Energy Management: This is a forward-thinking partnership between local commerce and government.
- Financial Enhancements: This project will allow Village Farms to be more self-sustainable and expand electric and thermal heat generation and is an attractive long term investment for the Company.
- Technology & Energy: The ownership of the facility will enable the Company to advance its high-tech sustainable growing technology both in the local area as well as provide invaluable experience to underpin future growth opportunities.
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. Since its inception, Village Farms has been guided by friendly growing methods, growing produce vegetables 365 days a year from its facilities that are healthier for people and the plant. Village Farms is Good for the Earth®.
Forward Looking Statements
This press release contains certain "forward looking statements". These statements relate to future events or future performance and reflect the Company's expectations regarding its growth, results of operations, performance, business prospects, opportunities or industry performance and trends. These forward looking statements reflect the Company's current internal projections, expectations or beliefs and are based on information currently available to the Company. 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 Canadian 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, 2014, which are available electronically at www.sedar.com. Actual results may differ materially from any forward looking statement. Although the Company believes 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, the Company assumes 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, Village Farms International, Inc., (407) 936-1190 ext 340; [email protected].