Village Farms International, Inc. (NASDAQ: VFF) (TSX: VFF) has closed its previously announced registered direct offering with investors for the purchase and sale of an aggregate of 9,396,226 units at a purchase price of US$5.30 per unit for gross proceeds of approximately US$49.8 million before placement agent fees and other offering expenses payable by Village Farms.
Each unit that was sold consists of one common share of Village Farms and a one-half (0.5) of a warrant to purchase a common share of Village Farms at an exercise price of US$5.80. The warrants will be exercisable beginning on March 10, 2021 and will expire on September 10, 2025.
Village Farms intends to use up to US$40 million of the net proceeds from this offering to finance a portion of the acquisition of 36,958,500 common shares in the capital of Pure Sunfarms Corp., representing 41.3% of the issued and outstanding common shares of Pure Sunfarms and all of the remaining common shares of Pure Sunfarms not held by the Company, as announced by the Company on September 8, 2020. The remaining net proceeds from this offering are intended to be used for general working capital.
Upon closing of the offering, there were 65,951,810 issued and outstanding common shares of Village Farms International.
Source | Villagefarms.com